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THURSDAY, NOVEMBER 26, 2009
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10

Blackwater Bilked US Out of $55M for Iraq Security: Audit

Company didn't provide enough workers

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(Newser) – The US overpaid Blackwater by $55 million for its security work in Iraq, a government audit has found. The company, since renamed Xe, didn't employ enough guards, medics, and other personnel to protect high-level officials but still collected full payment from the State Department, the Wall Street Journal reports. "Insufficient manning exposed the department to unnecessary risk," the auditors said. Blackwater also overcharged for airfare to Iraq.

A rep for the company said it's been "fully compliant with the terms and conditions of the contract." In 2007, a Blackwater security team was involved in a shooting that killed 17 Iraqis. Iraq refused to renew its operating license, and the company has pulled out of the country. But Xe is seeking new government contracts in Afghanistan.

A private security company armored vehicle rolls through central Baghdad on Dec. 13, 2008.
A private security company armored vehicle rolls through central Baghdad on Dec. 13, 2008.   (AP Photo/Hadi Mizban)
Blackwater security guard Evan Liberty leaves federal court in Washington, on Jan. 6, 2009, after pleading not guilty to manslaughter charges.
Blackwater security guard Evan Liberty leaves federal court in Washington, on Jan. 6, 2009, after pleading not guilty to manslaughter charges.   (AP Photo/Jose Luis Magana)
Plainclothes contractors working for Blackwater USA take part in a firefight as Iraqi demonstrators attempt to advance on a facility in the Iraqi city of Najaf on April 4, 2004.
Plainclothes contractors working for Blackwater USA take part in a firefight as Iraqi demonstrators attempt to advance on a facility in the Iraqi city of Najaf on April 4, 2004.   (AP Photo/Gervasio Sanchez)
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10 comments
VIEWING:
 
DJM420
Jun 16, 09 9:52 AM CDT
that's it? i expect to see a B behind the 55, not an M. i'm actually impressed. (sad to say - the overpayment ought to be paid back with interest) Reply
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+8
Fondue
Jun 16, 09 9:54 AM CDT
Let's just hope they are not awarded these new contracts. If they do, try underpaying this time. Reply
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+6
IN RESPONSE:
Amber
Jun 16, 09 10:14 AM CDT
Actually they changed there name and replaced the past President, so now it is business as usual with a change of the Corporate Headquarters as well.
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+2
TerrifiedCitizen
Jun 16, 09 10:08 AM CDT
Dirtwater is building up to evolve like the Italian Mafia did a century ago when defending the rich land owners. Reply
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+4
IN RESPONSE:
ack
Jun 16, 09 11:27 AM CDT
Ooh -- I always appreciate a history buff. Great analogy. "Xe" -- rhymes with "Medici."
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