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

Company didn't provide enough workers

By Sarah Quinn,  Newser Staff

Posted Jun 16, 2009 9:46 AM CDT

(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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COMMENTS
Showing 3 of 6 comments
JonmarkP
Jun 16, 2009 5:28 AM CDT
They weren't providing "security." They were out-of-control murderers for hire; their brutality enraged many Iraqis, and cost the lives of many US soldiers as payback.
ack
Jun 16, 2009 4:27 AM CDT
Ooh -- I always appreciate a history buff. Great analogy. "Xe" -- rhymes with "Medici."
Caps
Jun 16, 2009 4:27 AM CDT
Yell Reader you got that right. This war has gotten Bush/Cheney richer, and the American people poorer.

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Audits Rip Fed Oversight of Security Firms, Costs

Yet Another Blackwater Case Collapses

Blackwater Settles Iraqi Civil Suits

Blackwater's Iraq Contract Ends

Banned Blackwater Still Working in Iraq


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