Category Archives: corruption

Lockheed Martin: the shadow government

Too big to fail?

That’s been the key question asked of Wall Street’s biggest banks since the September 2008 collapse of Lehman Brothers, which sent shock waves through the global financial system and led to the worst recession this country has seen since the Great Depression.

But, there is another firm far from the circles of Wall Street for which that same question should be asked, says William Hartung, author of the new book Prophets of War. The subtitle of his book says it all: Lockheed Martin and the Making of the Military-Industrial Complex.

With $40 billion in annual revenue, Lockheed Martin is the single largest recipient of U.S. tax dollars. The company receives about $36 billion in government contracts per year. In 2008, $29 billion of that was for U.S. military contracts – a dollar figure 25% higher than its competitors Boeing Co. and Northrop Grumman.

What does that mean for you, the U.S. taxpayer? According to Hartung, each taxpaying household contributes $260 to Lockheed’s coffers each year!

When misanthropy and philanthropy go hand in hand

In a society that trumpets its faith in equal opportunity, freedom and the power of the people — government of the people, by the people and for the people, and all that — it’s ironic that again and again, we discover that some of the most powerful people in America are men (invariably men) who we’ve never heard of — men such as Charles and David Koch. It isn’t modesty that makes them keep out of sight.

Their father built his wealth by helping create an oil industry for Joseph Stalin. Later, Jane Mayer tells us in her New Yorker feature:

In 1958, Fred Koch became one of the original members of the John Birch Society, the arch-conservative group known, in part, for a highly skeptical view of governance and for spreading fears of a Communist takeover. Members considered President Dwight D. Eisenhower to be a Communist agent. In a self-published broadside, Koch claimed that “the Communists have infiltrated both the Democrat and Republican Parties.” He wrote admiringly of Benito Mussolini’s suppression of Communists in Italy, and disparagingly of the American civil-rights movement. “The colored man looms large in the Communist plan to take over America,” he warned. Welfare was a secret plot to attract rural blacks to cities, where they would foment “a vicious race war.” In a 1963 speech that prefigures the Tea Party’s talk of a secret socialist plot, Koch predicted that Communists would “infiltrate the highest offices of government in the U.S. until the President is a Communist, unknown to the rest of us.”

The principal heirs of the Koch fortune who now run Koch Industries (“the largest company that you’ve never heard of”), Charles and David Koch, have been described as “the billionaires behind the hate,” for helping spawn the Tea Party movement and “the Standard Oil of our times,” for their efforts to thwart government regulation.

With his brother Charles, who is seventy-four, David Koch owns virtually all of Koch Industries, a conglomerate, headquartered in Wichita, Kansas, whose annual revenues are estimated to be a hundred billion dollars. The company has grown spectacularly since their father, Fred, died, in 1967, and the brothers took charge. The Kochs operate oil refineries in Alaska, Texas, and Minnesota, and control some four thousand miles of pipeline. Koch Industries owns Brawny paper towels, Dixie cups, Georgia-Pacific lumber, Stainmaster carpet, and Lycra, among other products. Forbes ranks it as the second-largest private company in the country, after Cargill, and its consistent profitability has made David and Charles Koch — who, years ago, bought out two other brothers — among the richest men in America. Their combined fortune of thirty-five billion dollars is exceeded only by those of Bill Gates and Warren Buffett.

The Kochs are longtime libertarians who believe in drastically lower personal and corporate taxes, minimal social services for the needy, and much less oversight of industry — especially environmental regulation. These views dovetail with the brothers’ corporate interests. In a study released this spring, the University of Massachusetts at Amherst’s Political Economy Research Institute named Koch Industries one of the top ten air polluters in the United States. And Greenpeace issued a report identifying the company as a “kingpin of climate science denial.” The report showed that, from 2005 to 2008, the Kochs vastly outdid ExxonMobil in giving money to organizations fighting legislation related to climate change, underwriting a huge network of foundations, think tanks, and political front groups. Indeed, the brothers have funded opposition campaigns against so many Obama Administration policies — from health-care reform to the economic-stimulus program — that, in political circles, their ideological network is known as the Kochtopus.

In a statement, Koch Industries said that the Greenpeace report “distorts the environmental record of our companies.” And David Koch, in a recent, admiring article about him in New York, protested that the “radical press” had turned his family into “whipping boys,” and had exaggerated its influence on American politics. But Charles Lewis, the founder of the Center for Public Integrity, a nonpartisan watchdog group, said, “The Kochs are on a whole different level. There’s no one else who has spent this much money. The sheer dimension of it is what sets them apart. They have a pattern of lawbreaking, political manipulation, and obfuscation. I’ve been in Washington since Watergate, and I’ve never seen anything like it. They are the Standard Oil of our times.”

U.S. adviser to Kurds stands to reap oil profits

U.S. adviser to Kurds stands to reap oil profits
By James Glanz and Walter Gibbs, New York Times, November 12, 2009

P Peter W Galbraith eter W. Galbraith, an influential former American ambassador, is a powerful voice on Iraq who helped shape the views of policy makers like Joseph R. Biden Jr. and John Kerry. In the summer of 2005, he was also an adviser to the Kurdish regional government as Iraq wrote its Constitution — tough and sensitive talks not least because of issues like how Iraq would divide its vast oil wealth.

Now Mr. Galbraith, 58, son of the renowned economist John Kenneth Galbraith, stands to earn perhaps a hundred million or more dollars as a result of his closeness to the Kurds, his relations with a Norwegian oil company and constitutional provisions he helped the Kurds extract.

In the constitutional negotiations, he helped the Kurds ram through provisions that gave their region — rather than the central Baghdad government — sole authority over many of their internal affairs, including clauses that he maintains will give the Kurds virtually complete control over all new oil finds on their territory.

Mr. Galbraith, widely viewed in Washington as a smart and bold foreign policy expert, has always described himself as an unpaid adviser to the Kurds, although he has spoken in general terms about having business interests in Kurdistan, as the north of Iraq is known.

So it came as a shock to many last month when a group of Norwegian investigative journalists at the newspaper Dagens Naeringsliv began publishing documents linking Mr. Galbraith to a specific Norwegian oil company with major contracts in Iraq.

Interviews by The New York Times with more than a dozen current and former government and business officials in Norway, France, Iraq, the United States and elsewhere, along with legal records and other documents, reveal in considerable detail that he received rights to an enormous stake in at least one of Kurdistan’s oil fields in the spring of 2004. [continued…]

Brother of Afghan leader is said to be on CIA payroll

Brother of Afghan leader is said to be on CIA payroll
By Dexter Filkins, Mark Mazzetti and James Risen, New York Times, October 28, 2009

Ahmed Wali Karzai, the brother of the Afghan president and a suspected player in the country’s booming illegal opium trade, gets regular payments from the Central Intelligence Agency, and has for much of the past eight years, according to current and former American officials.

The agency pays Mr. Karzai for a variety of services, including helping to recruit an Afghan paramilitary force that operates at the C.I.A.’s direction in and around the southern city of Kandahar, Mr. Karzai’s home.

The financial ties and close working relationship between the intelligence agency and Mr. Karzai raise significant questions about America’s war strategy, which is currently under review at the White House.

The ties to Mr. Karzai have created deep divisions within the Obama administration. The critics say the ties complicate America’s increasingly tense relationship with President Hamid Karzai, who has struggled to build sustained popularity among Afghans and has long been portrayed by the Taliban as an American puppet. The C.I.A.’s practices also suggest that the United States is not doing everything in its power to stamp out the lucrative Afghan drug trade, a major source of revenue for the Taliban.

More broadly, some American officials argue that the reliance on Ahmed Wali Karzai, the most powerful figure in a large area of southern Afghanistan where the Taliban insurgency is strongest, undermines the American push to develop an effective central government that can maintain law and order and eventually allow the United States to withdraw.

“If we are going to conduct a population-centric strategy in Afghanistan, and we are perceived as backing thugs, then we are just undermining ourselves,” said Maj. Gen. Michael T. Flynn, the senior American military intelligence official in Afghanistan. [continued…]

Editor’s Comment — Andrew Exum says this is the most important article on Afghanistan you’ll read this week:

Why, you ask? Because if this is true, and if the CIA is empowering Ahmed Wali Karzai at the same time in which NATO/ISAF is saying abusive local power-brokers are a threat to mission success, then this is yet another example of NATO/ISAF carrying out one campaign in Afghanistan while the CIA carries out another — with both campaigns operating at cross purposes to one another. I should say here that I am in no position to confirm or deny this report. I can, however, say that numerous military officials in southern Afghanistan with whom I have spoken identify AWK and his activities as the biggest problem they face — bigger than the lack of government services or even the Taliban. And so if AWK is “the agency’s guy”, that leads to a huge point of friction between NATO/ISAF and the CIA.

At some point, the CIA’s Congressional overseers — who’ve already complained that they have been misled by the agency on multiple occasions — should start asking some fundamental questions about the institution.

In this decade the CIA has had a central role in the biggest intelligence failure the US has ever had; it has implemented a torture program; operated ghost prisons; conducted kidnapping operations; and provided support for drug warlords. The list could I’m sure be made much longer. At what point will the conclusion be drawn that this Cold War anachronism does more to threaten than protect America’s national security?

Gunmen attack UN workers in Kabul
By Sabrina Tavernise and Sangar Rahimi, New York Times, October 28, 2009

Taliban gunmen stormed a guest house in central Kabul on Wednesday morning, killing six United Nations employees and two Afghan security officials, according to U.N. officials, the police and the Afghan Interior Ministry.

One of those killed was an American security guard who battled the attackers as they came through the front gate in the predawn hours, according to an American who was staying in the guest house and who joined in the gun battle before shepherding 25 other residents to safety.

The police said one of the victims, a woman, had been shot in the head, and another burned to death. A cellphone video taken by a security official and seen by a reporter showed just the head and torso of a third victim, apparently cut in half when one of the attackers detonated his suicide vest. [continued…]

Editor’s Comment — While the Taliban say this attack is intended to deter people from assisting in the November 7 runoff election it clearly also challenges the concept of a strategy based on protecting the most populated parts of Afghanistan. Reinforce the perception that the center of Kabul is unsafe and it gets hard to promote the idea that anywhere can be made safe.

Add to that the fact that the Taliban has the upper hand even when outnumbered by 12 to 1 and the argument that tens of thousands more American troops will enhance security becomes increasingly implausible.

A crash course in democracy
By J. Scott Carpenter, Foreign Policy, October 21, 2009

The decision by both Afghan President Hamid Karzai and his main rival, former Foreign Minister Abdullah Abdullah, to accept a runoff election is a welcome development that provides the Afghan government with an opportunity to restore its damaged credibility. The runoff election now faces two main challenges: making the process more credible and ensuring the election actually contributes to security. Setting Nov. 7 as the date for the election makes both impossible.

Nationwide elections in any country are logistically difficult. In Afghanistan, they’re a nightmare. Funds need to be mobilized (the last elections cost more than $500 million), new poll workers need to be hired (or fired), observers have to be recruited, voters reassured, and security forces redeployed. Because ballots are often transported by donkey, it could take weeks to distribute them to Afghanistan’s remotest areas. A mad rush will be the only way to get all of this done, and such haste will not contribute to a credible process.

The first step in ensuring a credible election, therefore, is to postpone the date for the runoff. [continued…]

Our shame near complete

Our shame near complete
By Ramzy Baroud, Al-Ahram Weekly, October 15, 2009

… he post-Oslo culture has espoused a class of contractors. These are businessmen who are either high-ranking officials in the PA and the Fatah Party, or both, or closely affiliated with them. Much of the billions of dollars of international aid that poured into Palestine following the signing of Oslo found its way into private bank accounts. Wealth generated more wealth and “export and import” companies sprung up like poison ivy amidst the poor dwelling of refugees throughout the occupied territories. The class of businessmen, still posing as revolutionaries, encroached over every aspect of Palestinian society, used it, controlled it, and eventually suffocated it. It espoused untold corruption and, naturally, found an ally in Israel, whose reign in the occupied territories never ceased.

The PA became submissive not out of fear of Israeli wrath per se, but out of fear that such wrath would disrupt business — the flow of aid and thus contracts. And since corruption is not confined by geographical borders, PA officials abroad took Palestinian shame to international levels. Millions marched in the US, Europe, Asia, South America and the rest of the world, chanting for Gaza and its victims, while some PA ambassadors failed to even turn out to participate. When some of these diplomats made it to public forums, it was for the very purpose of brazenly attacking fellow Palestinians in Hamas, not to garner international solidarity with their own people.

Readily blaming “American pressure” to explain Abbas’s decision at the UNHRC no longer suffices. Even the call on the 74-year-old Palestinian leader to quit is equally hollow. Abbas represents a culture, and that culture is self-seeking, self-serving and utterly corrupt. If Abbas exits (and considering his age, he soon will), Mohamed Dahlan could be the next leader, or even Habbash, who called on Gaza to rebel against Hamas as Israel was blowing up Palestinian homes and schools left and right.

Palestinians that are now calling for change following the UN episode must consider the Oslo culture in its entirety, its “revolutionary” millionaires, its elites and contractors. A practical alternative to those corrupted must be quickly devised. The Israeli annexation wall is encroaching on Palestinian towns and villages in the West Bank, and a new war might be awaiting besieged Gaza. Time is running out, and our collective shame is nearly complete. [continued…]

Former US diplomat holds secret stake in Kurdish oil field

Former US diplomat holds secret stake in Kurdish oil field
By Reidar Visser, historiae.org, October 10, 2009

I Peter W Galbraith t is widely known that the former US diplomat Peter Galbraith has been one of the most prominent figures in shaping the state structure of Iraq in the period after 2003, especially with his vocal advocacy of various forms of radical decentralisation and/or partition solutions for Iraq’s political problems that are reflected in his books and numerous articles in the New York Review of Books, especially in the period from 2004 to 2008. Until now, though, it has generally been assumed that Galbraith’s fervent pro-partition propaganda was rooted in an ideological belief in national self-determination and a principled view of radical federalism as the best option for Iraq’s Kurds. Many have highlighted Galbraith’s experience as a former US diplomat (especially in the Balkans in the 1990s) as key elements of his academic and policy-making credentials.

Today, however, it has emerged that the realities were probably rather different. For some time, Norway’s most respected financial newspaper, Dagens Næringsliv (DN), has been focusing on the operations of DNO, a small Norwegian private oil company in Kurdistan, especially reporting on unclear aspects concerning share ownership and its contractual partnerships related to the Tawke field in the Dahuk governorate. One particular goal has been to establish the identity of a hitherto unknown “third party” which participated with DNO in the initial production sharing agreement (PSA) for Tawke between 2004 and 2008, but was squeezed out when this deal was converted to a new contract in early 2008, prompting a huge financial claim of around 500 million US dollars against DNO which has yet to be settled. Today, DN claims to present proof that one of the two major “mystery stake-holders” involved in the claim was none other than Peter Galbraith, who allegedly held a five-percent share in the PSA for Tawke from June 2004 until 2008 through his Delaware-based company Porcupine. Galbraith’s partner was the Yemenite multi-millionaire Shahir Abd al-Haqq, whose identity was revealed by the same newspaper earlier this month. DN has published documents from Porcupine showing Galbraith’s personal signature, and today’s reports are complete with paparazzi photographs of Galbraith literally running away from reporters as they confront him in Bergen, where he is currently staying with his Norwegian wife. He refused to give any comment citing potential legal complications. [continued…]
(H/t to Helena Cobban.)

EDITORIAL: Corruption: ‘the greatest single existential threat to Israel’

Corruption: ‘the greatest single existential threat to Israel’
By Paul Woodward, War in Context, May 6, 2009

At the web site of the neoconservative magazine, Commentary, Michael B Oren (who is in line to become Israel’s next ambassador to the United States) moves away from the standard position on existential threats to Israel. Seeing an array of existential threats, Oren says that among those, that posed by a nuclear-armed Iran would itself constitute “not one but several existential threats.” Even so, he does not see the risk of Israel being wiped off the map as preeminent among the dangers Israel faces.

This is where Oren locates the greatest threat to Israel’s survival:

Recent years have witnessed the indictment of major Israeli leaders on charges of embezzlement, taking bribes, money laundering, sexual harassment, and even rape. Young Israelis shun politics, which are widely perceived as cutthroat; the Knesset, according to annual surveys, commands the lowest level of respect of any state institution. Charges of corruption have spread to areas of Israeli society, such as the army, once considered inviolate.

The breakdown of public morality, in my view, poses the greatest single existential threat to Israel. It is this threat that undermines Israel’s ability to cope with other threats; that saps the willingness of Israelis to fight, to govern themselves, and even to continue living within a sovereign Jewish state. It emboldens Israel’s enemies and sullies Israel’s international reputation. The fact that Israel is a world leader in drug and human trafficking, in money laundering, and in illicit weapons sales is not only unconscionable for a Jewish state, it also substantively reduces that state’s ability to survive.

When it comes to Oren’s remedy, he sounds less than convincing:

…corruption must be rooted out through a revival of Zionist and Jewish values. These should be inculcated, first, in the schools, then through the media and popular culture. The most pressing need is for leadership.

Perhaps there’s another route — one that’s presumably compatible with Jewish values yet can make no claim to being specifically Judaic: the promotion of public integrity.

Corruption is the most glaring expression of a conflict between words and actions. The gap that separates what Israel’s leaders say from what they do is what renders their utterances worthless. But although such leaders are viewed with cynicism by those who have witnessed how deeply ingrained this lack of integrity has become, that cynicism can easily be washed away if promises are fulfilled through actions.

While Israel’s pathological political culture has been shaped by many powerful internal forces there has also been for many decades an external enabler: the United States.

Having previously given Israel’s leaders a free pass, the US could, if it chose, help break the cycle of corruption.

From an unexpected quarter an opportunity is now emerging through which Israel could reclaim some international faith in the value of its word.

Israel’s US-enabled policy of “nuclear ambiguity” has frayed beyond repair. A policy which was never anything more than a bargain of deceit does nothing more than give Israel an excuse for excluding itself from an international debate within which its unacknowledged nuclear arsenal is a central factor.

Now, the Obama administration’s top arms control negotiator, Assistant Secretary of State Rose Gottemoeller, has effectively declared that the era of nuclear ambiguity is over and that Israel’s nuclear arsenal cannot forever remain outside the regime of the nuclear non-proliferation treaty.

“Universal adherence to the NPT itself, including by India, Israel, Pakistan and North Korea … remains a fundamental objective of the United States,” Gottemoeller said at the UN on Tuesday.

The Jerusalem Post reported:

Former prime minister Ariel Sharon’s chief strategist, Dov Weisglass, said Gottemoeller’s comments were very alarming.

“If these statements indicate a change in American policy on this issue, I believe this may be the most worrisome development for Israel’s security in many years,” he told Army Radio.

The Washington Times reported:

Ms. Gottemoeller endorsed the concept of a nuclear-free Middle East in a 2005 paper that she co-authored, “Universal Compliance: A Strategy for Nuclear Security.”

“Instead of defensively trying to ignore Israels nuclear status, the United States and Israel should proactively call for regional dialogue to specify the conditions necessary to achieve a zone free of nuclear, chemical, and biological weapons,” she wrote.

The paper recommends that Israel take steps to disarm in exchange for its neighbors getting rid of chemical and biological weapons programs as well as Iran forgoing uranium enrichment.

If soon-to-be ambassador Oren is serious about reversing Israel’s problem with corruption, maybe he needs to put into practice the art of political leadership and press Prime Minister Netanyahu to take a bold political initiative by bringing Israel out of the nuclear closet.

Is this likely to happen? Hardly. Why? Because Israel does not perceive Iran so much as an existential threat as much as a strategic threat to its regional military dominance.

Entering the NPT and eventually disarming would not threaten Israel’s existence but would destroy its privileged status as a rogue nation able to resist international pressure.

If Obama really wants to sharpen his challenge to Netanyahu when they meet later this month, perhaps who can present him with this choice: keep your nuclear arsenal and learn how to live with a nuclear Iran, or, sign up for the creation of a non-nuclear Middle East. Nukes or no nukes. Which do you want?

INTERVIEW: Sibel Edmonds

Sibel Edmonds: ‘Buckle up, there’s much more coming.’
By Luke Ryland, Dissident Voice, January 29, 2008

In the last few weeks, London Times has run a series of articles about the so-called ‘Sibel Edmonds case’: (For sale: West’s deadly nuclear secrets,’ FBI denies file exposing nuclear secrets theft‘ and ‘Tip-off thwarted nuclear spy ring probe‘)

Former FBI translator Sibel Edmonds stumbled into a world of espionage, nuclear black market, narcotics trafficking, money laundering, and corruption at the highest levels of the US government.

I interviewed Sibel on Sunday regarding the current investigation and reporting by the Times, the failures of the US media, and last week’s decision by the Bush administration to legalize the sale of nuclear technology to Turkey, in an apparent effort to exonerate prior criminal activity by officials in his administration. [complete article]

NEWS: White House cover-up

White House missing CIA, Iraq e-mails
AP, January 19, 2008

Apparent gaps in White House e-mail archives coincide with dates in late 2003 and early 2004 when the administration was struggling to deal with the CIA leak investigation and the possibility of a congressional probe into Iraq intelligence failures.

The gaps — 473 days over a period of 20 months — are cited in a chart prepared by White House computer technicians and shared in September with the House Reform and Government Oversight Committee, which has been looking into reports of missing e-mail.

Among the times for which e-mail may not have been archived from Vice President Dick Cheney’s office are four days in early October 2003, just as a federal probe was beginning into the leak of Valerie Plame’s CIA identity, an inquiry that eventually ensnared Cheney’s chief of staff.

Contents of the chart — which the White House now disputes — were disclosed Thursday by Rep. Henry Waxman, a California Democrat who chairs the House committee, as he announced plans for a Feb. 15 hearing. [complete article]

OPINION: Second thoughts on Charlie Wilson’s War

Second thoughts on Charlie Wilson’s War
By Chalmers Johnston, TomDispatch, January 6, 2008

I have some personal knowledge of Congressmen like Charlie Wilson (D-2nd District, Texas, 1973-1996) because, for close to twenty years, my representative in the 50th Congressional District of California was Republican Randy “Duke” Cunningham, now serving an eight-and-a-half year prison sentence for soliciting and receiving bribes from defense contractors. Wilson and Cunningham held exactly the same plummy committee assignments in the House of Representatives — the Defense Appropriations Subcommittee plus the Intelligence Oversight Committee — from which they could dole out large sums of public money with little or no input from their colleagues or constituents.

Both men flagrantly abused their positions — but with radically different consequences. Cunningham went to jail because he was too stupid to know how to game the system — retire and become a lobbyist — whereas Wilson received the Central Intelligence Agency Clandestine Service’s first “honored colleague” award ever given to an outsider and went on to become a $360,000 per annum lobbyist for Pakistan. [complete article]

NEWS: War profiteer hauled off in handcuffs

One down: Obscenely decadent war profiteer hauled off in handcuffs
By Sarah Anderson, AlterNet, October 26, 2007

America’s most ostentatious war profiteer is no longer a free man. In a long-anticipated move, FBI agents arrested bulletproof vest maker David H. Brooks in his Manhattan apartment at dawn on Thursday. In the tradition of Al Capone, Brooks was nabbed on allegations of financial shenanigans, despite strong suspicions that the defense contractor has much more serious crimes on his hands.

Brooks emerged as the poster boy for shameless war profiteering in November of 2005 when he blew some $10 million in profits from military contracts on a celebrity-studded party for his daughter. Leaked details of the bash drew national attention, including a description of Brooks’ pink suede suit and photos of his daughter on stage with the rapper 50 Cent. A New York Times editorial compared Brooks to the ill-fated Marie Antoinette.

And indeed, while Brooks won’t face a guillotine for his greed, he could spend up to 70 years in prison if convicted of all charges. The 71-page indictment alleges that while Brooks was chief executive of DHB Industries, a leading provider of military body armor, he pocketed more than $185 million from insider trading, fraud and tax evasion. He is also charged with using millions of dollars in DHB funds for personal expenses. [complete article]

NEWS: Waxman’s on the job

White House feels Waxman’s oversight gaze
By Jonathan Weisman, Washington Post, October 25, 2007

For months, Rep. Henry A. Waxman, chairman of the House oversight committee, has been threatening, subpoenaing and just plain badgering Secretary of State Condoleezza Rice to come before his panel to answer questions about the run-up to the Iraq war, corruption and State Department contracting.

Today, Rice will finally appear. But Waxman (D-Calif.) has not spent the week on a victory lap. He has found time to produce evidence accusing State Department security contractor Blackwater Worldwide of tax evasion, to fire off a letter to Rice demanding information about alleged mismanagement of a $1 billion contract to train Iraqi police, and to hold a hearing on uranium poisoning on Navajo land.

Waxman has become the Bush administration’s worst nightmare: a Democrat in the majority with subpoena power and the inclination to overturn rocks. But in Waxman the White House also faces an indefatigable capital veteran — with a staff renowned for its depth and experience — who has been waiting for this for 14 years. [complete article]

OPINION: The mission that leads to corruption, human rights abuse and liars

Suicide is not painless
By Frank Rich, New York Times, October 21, 2007

It was one of those stories lost in the newspaper’s inside pages. Last week a man you’ve never heard of — Charles D. Riechers, 47, the second-highest-ranking procurement officer in the United States Air Force — killed himself by running his car’s engine in his suburban Virginia garage.

Mr. Riechers’s suicide occurred just two weeks after his appearance in a front-page exposé in The Washington Post. The Post reported that the Air Force had asked a defense contractor, Commonwealth Research Institute, to give him a job with no known duties while he waited for official clearance for his new Pentagon assignment. Mr. Riechers, a decorated Air Force officer earlier in his career, told The Post: “I really didn’t do anything for C.R.I. I got a paycheck from them.” The question, of course, was whether the contractor might expect favors in return once he arrived at the Pentagon last January.

Set against the epic corruption that has defined the war in Iraq, Mr. Riechers’s tragic tale is but a passing anecdote, his infraction at most a misdemeanor. The $26,788 he received for two months in a non-job doesn’t rise even to a rounding error in the Iraq-Afghanistan money pit. So far some $6 billion worth of contracts are being investigated for waste and fraud, however slowly, by the Pentagon and the Justice Department. That doesn’t include the unaccounted-for piles of cash, some $9 billion in Iraqi funds, that vanished during L. Paul Bremer’s short but disastrous reign in the Green Zone. Yet Mr. Riechers, not the first suicide connected to the war’s corruption scandals, is a window into the culture of the whole debacle. [complete article]

FEATURE: Crime of the century

The People vs. the Profiteers
By David Rose, Vanity Fair, November, 2007

In his functional home-office in Orlando, and at the Beltway headquarters of his law firm, Grayson & Kubli, [Alan] Grayson spends most of his days and many of his evenings on a lonely legal campaign to redress colossal frauds against American taxpayers by private contractors operating in Iraq. He calls it “the crime of the century.”

His obvious adversaries are the contracting corporations themselves—especially Halliburton, the giant oil-services conglomerate where Vice President Dick Cheney spent the latter half of the 1990s as C.E.O., and its former subsidiary Kellogg, Brown & Root, now known simply as KBR. But he says his efforts to take on those organizations have earned him another enemy: the United States Department of Justice.

Over the past 16 years, Grayson has litigated dozens of cases of contractor fraud. In many of these, he has found the Justice Department to be an ally in exposing wrongdoing. But in cases that involve the Iraq war, the D.O.J. has taken extraordinary steps to stand in his way. Behind its machinations, he believes, is a scandal of epic proportions—one that may come to haunt the legacy of the Bush administration long after it is gone. [complete article]

NEWS: Experts question official’s deal with nonprofit

Air Force arranged no-work contract
By Robert O’Harrow Jr., Washington Post, October 1, 2007

While waiting to be confirmed by the White House for a top civilian post at the Air Force last year, Charles D. Riechers was out of work and wanted a paycheck. So the Air Force helped arrange a job through an intelligence contractor that required him to do no work for the company, according to documents and interviews.

For two months, Riechers held the title of senior technical adviser and received about $13,400 a month at Commonwealth Research Institute, or CRI, a nonprofit firm in Johnstown, Pa., according to his resume. But during that time he actually worked for Sue C. Payton, assistant Air Force secretary for acquisition, on projects that had nothing to do with CRI, he said.

Riechers said in an interview that his interactions with Commonwealth Research were limited largely to a Christmas party, where he said he met company officials for the first time.

“I really didn’t do anything for CRI,” said Riechers, now principal deputy assistant secretary for acquisition. “I got a paycheck from them.”

Riechers’s job highlights the Pentagon’s ties with Commonwealth Research and its corporate parent, which has in recent years received hundreds of millions of dollars worth of grants and contracts from the military, and more than $100 million in earmarks from lawmakers. [complete article]

NEWS: A military-corporate axis of corruption

Graft in military contracts spread from base
By Ginger Thompson and Eric Schmidtt, New York Times, September 24, 2007

Pentagon officials are investigating some $6 billion in military contracts, most covering supplies as varied as bottled water, tents and latrines for troops in Kuwait, Iraq and Afghanistan.

The inquiries have resulted in charges against at least 29 civilians and soldiers, more than 75 other criminal investigations and the suicides of at least two officers. They have prompted the Pentagon, the largest purchasing agency in the world, to overhaul its war-zone procurement system.

Much of the scrutiny has focused on the contracting office where Major Cockerham worked at Camp Arifjan in Kuwait, a world away from Castor in more than miles. Until the buildup to the war in Iraq, it was a tiny outpost with a staff of 7 to 12 people who awarded about $150 million a year in contracts, according to Bryon J. Young, a retired Army colonel and the current director of the Army Contracting Agency.

But when tens of thousands of soldiers began pouring through Kuwait, Mr. Young said in an interview, his agency was forced to entrust nearly $4 billion over the next four years to what he described as a B team of civilians and military officers with limited contracting experience. It was a setting flush with money, he said, but lacking the safeguards to prevent contracting officials from taking it. [complete article]