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Today's Must Read
So what defense contract in Iraq didn't involve a kickback? What contract was awarded through competitive bidding? As Pentagon investigators conduct an unprecedented review into corruption in the department's Iraq contracting, it's a rare bid that wasn't crooked.
Yesterday, Congress learned that $6 billion worth of contracts are under criminal review. That's right -- criminal:
Military officials said Thursday that contracts worth $6 billion to provide essential supplies to American troops in Kuwait, Iraq and Afghanistan — including food, water and shelter — were under review by criminal investigators, double the amount the Pentagon had previously disclosed.In addition, $88 billion in contracts and programs, including those for body armor for American soldiers and matériel for Iraqi and Afghan security forces, are being audited for financial irregularities, the officials said.
Taken together, the figures, provided by the Pentagon in a hearing before the House Armed Services Committee, represent the fullest public accounting of the magnitude of a widening government investigation into bid-rigging, bribery and kickbacks by members of the military and civilians linked to the Pentagon’s purchasing system.
House Armed Services Committee Chairman Ike Skelton (D-MO) called DOD's procurement process "a culture of corruption," an assessment that appears to represent the bipartisan consensus. Yet the Pentagon's deputy inspector general said the contracting corruption was attributable to "isolated incidents." Yes, $6 billion worth of isolated incidents.
Underscoring the culture-of-corruption charge: a court case reveals that a company hired to build the U.S. embassy in Iraq, First Kuwaiti General Trading & Contracting, paid $200,000 in kickbacks for two Army contracts. The allegation comes out of testimony given by a former KBR contracting official, Anthony Martin, convicted of bribery earlier this year.
Martin said in court documents that he agreed to receive kickbacks before awarding a $4.6 million contract to First Kuwaiti to supply 50 semi-tractors and 50 refrigeration trailers for six months. A month later, Martin awarded First Kuwaiti an additional $8.8 million subcontract to supply 150 semi-tractors for six months.For his effort, Martin said, the company agreed to pay him $200,000. After he received an initial $10,000, he took a trip back to the United States. When he returned, he says he told the company he would not take any additional money.
The court filing says Martin's "criminal benefactor appears to have completely escaped responsibility for his misconduct and instead continues to profit from a cozy relationship with the government."
First Kuwaiti is accused, among other things, of using slave labor to build the embassy. Rep. Henry Waxman (D-CA) is investigating whether State Department Inspector General Howard "Cookie" Krongard obstructed an internal review of the charges.
Comments (36)
Anonymous wrote on September 21, 2007 9:54 AM:Remember that DOD (the Defense Department) failed to defend the homeland on 9/11. No armed fighter jets available, sorry.
Considering that "Defense" is part of DOD's cabinet title (the others being 'Department' and 'of') should this be a surprise?
mkolb wrote on September 21, 2007 10:42 AM:Boy, do we ever need another Truman Committee, or maybe just someone as determined as he was.http://www.senate.gov/artandhistory/history/minute/The_Truman_Committee.htm
Fred M. wrote on September 21, 2007 10:54 AM:FINALLY! I believe this will turn into the largest corruption case in our history. I hope the dems leave no stone unturned and don't allow a few scapegoats to take the fall for the real villains behind this ... Bush, Cheney & Company.
I am sure it will become clear why Halliburton fled the United States. The dems need to jump on this and not rest until every traitor is identified and prosecuted!
Thomas wrote on September 21, 2007 11:02 AM:The dream to make Iraq end in a korea type arrangement is a boshco coke fantasy. WHY It ignores HISTORY. The Buddhists are far more docile than Moslems--and Iraq has a history of evictiing occupiers. Neocon dreams appear to be overblown naive, delusional. What is going to happen when the REAL Americans see through the current propaganda the hand of NON real Americans running the show?? It won't be pretty. Time for the neocons to slimk off to where their loyality lies. The longer they manipulate American policy and war, the worse will be the backlash.
Fred M. wrote on September 21, 2007 11:08 AM:Excellent site about Halliburton:
http://www.halliburtonwatch.org/
Thomas wrote on September 21, 2007 11:08 AM:The dream to make Iraq end in a korea type arrangement is a boshco coke fantasy. WHY It ignores HISTORY. The Buddhists are far more docile than Moslems--and Iraq has a history of evictiing occupiers. Neocon dreams appear to be overblown naive, delusional. What is going to happen when the REAL Americans see through the current propaganda the hand of NON real Americans running the show?? It won't be pretty. Time for the neocons to slimk off to where their loyality lies. The longer they manipulate American policy and war, the worse will be the backlash.
iggy wrote on September 21, 2007 11:13 AM:ALWAYS remember Poppy Bush's NOW famous statement back in the 80's, and you will see where we have gone -
Fred M. wrote on September 21, 2007 11:19 AM:QUID PRO QUO
Write your Congressmen and demand that they create a commission to look into the profiteering and corruption in all aspects of the Iraq debacle.
I threw up in my mouth a little yesterday when Bush stated in his news conference that he is a good custodian of the peoples' money. I couldn't believe that not one correspondant questioned this statement or asked him to justify it based on his record of turning the largest surplus in our history into the largest deficits!
If the dems go after this the way they should, the cronyism, kickbacks, no-bid contracts, profiteering and outright fraud should result in Bush and Cheney doing jail time!
DEMAND THE TRUTH!
ScrewBush wrote on September 21, 2007 11:20 AM:Another day, another headline, Current Administration Breaks Law...
Please don't waste your time getting too excited about this or anything else because Dems in Congress will never do anything about it. They will have hearings, oh boy, and we'll see folks get caught telling a lie, and when the cameras go dark some Senator will say thank you for testifying today, and that will be that.
America: 1776-2000
mucouswelby wrote on September 21, 2007 11:22 AM:A nice idea while it lasted.
Let me rant & rave for a second....Harry Truman was a machine pol from Missouri who rose to prominence investigating fraud in war time contracts....no one wanted look unpatriotic by admitting fraud existed while we were at war...if could take care of it during a real national emergency we can take care of it now
Fred M. wrote on September 21, 2007 11:30 AM:Come on people ... where is the outrage?!
This administration has had its hands in your pockets for years! They are using your tax dollars ... and the future tax dollars of your children which will be needed to pay off their deficits ... for sweetheart deals for their business cronies and to feather their own nests.
Demand an accounting ... and accoutability!
Fred M. wrote on September 21, 2007 11:33 AM:I guess the old saying is correct,
CyclingLeft wrote on September 21, 2007 11:36 AM:"Ultimately, people get the government they deserve."
What's truly disgusting is that Bush calls a news conference to condemn $35 billion over 5 years for the SCHIP program as fiscally irresponsible and does nothing about the blatant waste and corruption in no-bid contracting for the Iraq Occupation. He's more than willing to line the pockets of corporate America with government funds to continue this illegal war and yet refuses to provide some healthcare for children of the working poor.
Anonymous wrote on September 21, 2007 11:57 AM:Lets see...
A billion dollar embassy, much of it unuseable due to substandard material...
The guilty will get 6 months and probation...
The innocent are out a $billion which could have been use to do a tremendous amount of good.
The DOD folk will praise themselves and tell congress what a good job they are doing... and retire with benefits non government employees can only dream about...
jeffgee wrote on September 21, 2007 12:11 PM:Before and during WW2, the military was called the War Department, when the the Armed Services were defending us from the Axis. After WW2 it was called the Defense Department and since then it has waged war after war that in no way were related to the defense of the homeland of the United States. The US invasion of Iraq, based on trumped-up threats, more resembles Germany's invasion of Poland than any defensive action.
"Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is tell them they are being attacked, and denounce the pacifists for lack of patriotism, and exposing the country to greater danger."
Herman Goering
judyinnm wrote on September 21, 2007 12:11 PM:What's new? It's the normal way of governmental business, in the "post 9/11" world. "The Pentagon is investigating fraud" - wonder who has the no bid contract to do the investigation, this time...
ky wrote on September 21, 2007 12:11 PM:You might check out the Federal District Court located in Davenport IA where a lot of these cases are being processed. There was an article in The Dispatch (local paper) just a couple days ago re kickbacks between a KBR employee & a Kuwaiti company that is going on now.
chisholm wrote on September 21, 2007 12:15 PM:The DOD is investigating itself. Great. I have so much confidence in the ethical culture of its employees.
The Conservative Deflator wrote on September 21, 2007 12:17 PM:Look. you have a Secretary of Defense (Robert Gates), who helped arm Saddam Hussein during the 1980's. Google "Howard Teicher" and click on the first link , to view Mr. Teicher's sworn affidavit, that Gates secretly helped Saddam acquire cluster bombs and armor-piercing artillery shells. Why would a criminal like Gates have any interest in investigating corruption when he is corrupt to the core himself?
We need to imprison the entire Bush Administration, to end this Culture of Corruption.
Nin wrote on September 21, 2007 12:21 PM:and why are we angry? perhaps we are unpatriotic. Hmmm
Raenelle wrote on September 21, 2007 12:23 PM:This may seem like a trivial non-issue to some. But I lived in Montana a few years--there are quite a few people there who will give respect to someone who rides a horse well; and lose respect for someone who is an incompetent rider. They don't mock city folk just for their elitism. That may well be the basis for their contempt, but it's not the only expression of it; they also enjoy mocking them for their prissy clumsiness in nature.
And a cowboy poser who's afraid of horses?--that's a big deal. Derision isn't really compatible with strong leadership and protection from terrorism, after all. If you'd pose about something like that, what else are you lying about.
NobodyinParticular wrote on September 21, 2007 1:43 PM:Two quick points:
1. The overwhelming majority of DoD employees (not in uniform) are Democrats and union members.
2. What happens if, and considering the latest hot water Rep. Murtha finds himself in (100% campaign contributions from companies he steered contracts to) it's not far stretch, the Culture of Corruption includes most of the top-tier Democrats as well as Republicans? Do we continue to root out the corrupting culture or just target Republicans because only they are evil?
I make the points because I've been in and around the Defense business now through 2 presidents.
SeeDee wrote on September 21, 2007 1:47 PM:Raenelle asks: "...what else are they lying about."?
Simple answer...EVERYTHING they address!
If someone is keeping score since Jan. 20, 2001, for the Bushites and friends the (a).. 'lied about, concealed, twisted the truth' versus (b).. 'told the un-varnished, honest to God truth' on any and all given issues would be a dismal record of: (a)..20, (b)..ZERO.
Seriously, can someone review the past six and a half years and find any single policy engaged or promulgated by the George W. Bush administration which is based on TRUTH?
Not to chide ANY particular group, but don't those 'born-again christians' have any regard for the truth?
Phild wrote on September 21, 2007 1:55 PM:The dollar amounts are gigantic. However, nothing will come of it. Republicans get away with everything including stealing from the government. Of course, the Democrats could do something about it if they wanted to. But, they are too busy condemning MoveOn.org or doing some other such nonsense.
Fred M. wrote on September 21, 2007 2:17 PM:NobodyinParticular:
If it is true that you have been "in and around the Defense business now through 2 presidents" you know that many of the career people have been raising red flags about this the beginning of the Iraq war.
I saw an interview with one a few years ago who was actually terminated because she would not sign off on all the shenanigans she saw taking place. As an example, she talked about how no-bid contracts were frequently used when a prompt response was necessary.
She pointed out that until the Bush administration, these no-bid contracts were used as a stop gap measure for a short period of time and then normal procurement requirements were followed. However, these current no-bid contracts have been written so that they can go on for years or even indefinitely.
This isn't just "busines as usual," folks. This administration is guilty of traitorous behavior!
VL wrote on September 21, 2007 5:00 PM:"I believe this will turn into the largest corruption case in our history."
Oh, man, hate to rain on anyone's parade, but I counter-predict this, too, will float for a while, then sink in the mud-colored waters of Old News, pushed down by the pole of Who Cares, All Politicians Are Crooked Anyway.
Remember the Bunnatine Greenhouse Effect.
Waxman Constituent wrote on September 21, 2007 7:10 PM:I'm all for investigating bad behavior in Iraq but this makes it look like Waxman fired before he aimed.
jophusa wrote on September 21, 2007 8:44 PM:http://blogs.wsj.com/washwire/2007/09/21/tarnished-witness-in-iraqi-kidnapped-labor-allegations/
I firmly believe that this would have continued to be swept under the rug, kept out of the mainstream news, and would have continued to operate had it not been for the Democratic control of congress and the investigative committees they have formed. While I am frustrated by the war as much as anyone else, I personally give this congress my approval. I feel like they are doing what they can.
Ross Best wrote on September 21, 2007 9:31 PM:And $6 billion worth of misconduct might result in twenty or thirty thousand dollars in fines. After all, this is camouflage-collar crime we're talking about here.
Thomas wrote on September 21, 2007 11:45 PM:The dream to make Iraq end in a korea type arrangement is a boshco coke fantasy. WHY It ignores HISTORY. The Buddhists are far more docile than Moslems--and Iraq has a history of evictiing occupiers. Neocon dreams appear to be overblown naive, delusional. What is going to happen when the REAL Americans see through the current propaganda the hand of NON real Americans running the show?? It won't be pretty. Time for the neocons to slimk off to where their loyality lies. The longer they manipulate American policy and war, the worse will be the backlash.
anonymous wrote on September 22, 2007 4:28 PM:I moved to the US 7 years ago. I ran away from the nightmare of living in the place where i was born. I know how it is to lose evertything: private property, freedom of speech, etc. to an authoritarian government. What terrorizes me is the idea of going through the same thing in here and seeing this beautiful country in a process of destruction and degradation. I saw similar things back there. I can't do anything here, i'm not a citizen, i can't vote, i can't call congress representatives. To those of you who can, please do something.
The Profit wrote on September 22, 2007 8:01 PM:What do you expect to come from all of this?
the government wont find the right people, they will make commities do investigations, conduct interogations, slap around a few patsies, ultimatly ending up temporaily appeasing the mass idiots of the world.
the real people that should be thrown in jail will get away, with even bigger bank accounts than they already got.
i say give someone a gun and clean out the white house, no court (at current)will do what is needed to fix this facist government posing as a democracy.
Jim wrote on September 22, 2007 11:09 PM:Lets talk about the people who make decisions every day with these contracts. In contracts as a Manager I saw a lot of million dollar plus contracts go to vendors who were not competitively bid. The individual above me and the only person who could make the decision "NOT" to except the proper bid, over turned several high dollar contracts in favor of one certain subcontractor in Iraq. That subcontractor was owed several million dollars in back pay because of this higher management individual was not getting them paid on time or not at all but would promise more contracts to make up for this fact. I really can’t understand why he wasn't fired (AND) he's still there in Iraq doing the same job at the same location. Nothing is being done. Even after telling management of this problem, “I” was told to fix it not him. He was not under the fire but I was (this is after I said to management there is a problem). I had 25 SCA’s working day and night to keep us all from being fired after that. I moved on from that position and found out later that because of the great work of the SCA’s, all the contracts had been resolved “keeping” them all employed (even the senior management individual who created the entire mess). I was black listed after that and found the same problem at my new job. Senior management didn’t want change, didn’t want to do the right things or quicken the time for purchases for the military, fire individuals who wouldn’t work just because they had had a personal relationship with them at one time, hostile working environment towards employees who wouldn’t conform to change, etc. So after a few months of working there, senior management wrote me up for not doing “MY” job. I asked several times, how was I to do my job when all I got from talking to management was “go in a different direction”. Was that code for “stop making waves and sit in your office and do nothing (?)” I know I am on the right track with this statement because senior management did exactly that. Sat in his or their offices and did nothing. So now I’m back home, thank god not in jail (this is where those two managers should be), along side them but I never gave them a chance to screw me like they were screwing the client and the subcontractors.
Jim wrote on September 22, 2007 11:20 PM:One more thing: First Kuwaiti was First Iraqi before that company was throw off all the bases in Iraq. Audits of contracts found favor in their company of lick-backs and other mis-treatment of contracts through the fault of ill-trained SCA's. I know for a fact that FK was throw off Camp Liberty for having several parties in which alcohol was present and prime contractors were present at all the parties.....
Steed Scott wrote on September 26, 2007 5:27 PM:Congressional leaders should name a special committee to investigate corruption at the DOD and especially in the wars fought for the benefit of big oil and big corporations for the profit of big oil and big corporations. We must break up the control of the military-industrial complex, and politicians must talk about it every day.
laura wrote on October 27, 2007 4:00 AM:so...are we REALLY to believe that 9/11 was the ONLY thing they didn't lie about?