As Troops Exit Iraq, US Spends More on Contractors

Workers outnumber troops, account for 20% of war spending

(NEWSER) - By the end of the year, the US will have spent $100 billion on private defense contractors in Iraq, a congressional report finds, showing more private-sector reliance than any previous wartime. Some 20% of funds spent on the war have gone to contractors, whose numbers are now greater than the US military, the New York Times reports. More»

Almost $8.2B in Iraq War funding evaded federal rules, reports the Pentagon

(NEWSER) - A Pentagon audit of $8.2 billion in taxpayer money spent in Iraq found that nearly all of the handouts skirted federal rules, and millions of dollars in contracts were awarded with little or no record of what they were for, reports the New York Times. Take the $320.8 million that was issued to 1,000 Iraqis for "Iraqi Salary Payment"—$320,800 a head—with no explanation of what they were compensated for. More»

(NEWSER) - Two former Blackwater employees accused company founder and CEO Erik Prince of murder in statements filed in federal court this week, the Nation reports. The former guards, including an ex-Marine, say Prince may have either killed or facilitated the killing of operatives probing the security contractor's Iraq operations. The investigators were working on behalf of the federal government, according to the workers. They also accuse Prince of smuggling illegal weapons into Iraq and condoning the killing of civilians. More»

State Dept. calls renewal 'moot' after Iraq denies operating license

(AP) - The State Department said Friday it will not renew Blackwater's contract to protect American diplomats in Iraq when it expires in May. A department spokeswoman said the contract will lapse because of the Iraqi government's decision to deny Blackwater a license to operate, amid lingering outrage over a 2007 shooting incident in Baghdad that left 17 Iraqi civilians dead. More»

Contractor shipped firearms without permit; some may now be on black market

(NEWSER) - The government will hit security firm Blackwater USA with a multimillion-dollar fine for shipping hundreds of unauthorized guns to Iraq, McClatchy reports. A lengthy State Department investigation has concluded that the security contractor shipped some 900 weapons to the country—some of which likely wound up on the black market—without necessary permits, sources say. More»