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You are here: MacNN Forums > Community > MacNN Lounge > Political/War Lounge > Some more corruption in Iraq.

Some more corruption in Iraq.
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angaq0k
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Oct 11, 2004, 05:26 PM
 
Here.
"This is corruption at its worst," said Alan Grayson, the lead lawyer for the whistle-blowers.

Custer Battles, a small company based in suburban Washington, was one of many private security companies which rushed into postwar Iraq to snap up contracts to guard people and installations. Two former Army Rangers active in Republican politics formed the company: Scott Custer and Michael Battles.

One of Custer Battles' first jobs was a $16.8 million no-bid contract to provide security at Baghdad International Airport. The U.S.-organized Coalition Provisional Authority, which provided civilian governmental functions during the occupation, then hired Custer Battles for $24.4 million to provide support such as housing and transportation for the program to replace Iraqi currency that had carried deposed President Saddam Hussein's portrait.

Custer Battles also won several other security or logistics contracts or subcontracts in Iraq.
Some seem to have taken Iraq for granted...

But then, with Bechtel and Halliburton overcharging, I suppose Custer Battles is only following the footsteps of giants...

The lawsuit said Custer Battles took at least one and as many as eight forklifts from Iraqi Airways at the airport, repainted them to cover their former markings and billed the CPA for leasing them at thousands of dollars per month.

Battles got into the security business after losing a Republican primary for the Rhode Island U.S. House seat held by Democrat Patrick Kennedy. A Federal Election Commission audit of Battles' campaign found several violations of campaign financing laws, including the taking of more than the $1,000 limit from some individuals and failing to report its finances properly.

Custer gave $500 to Battles' campaign and $300 last year to Sen. Lincoln Chafee, R-R.I.
( Last edited by angaq0k; Oct 11, 2004 at 05:41 PM. )
"******* politics is for the ******* moment. ******** equations are for ******** Eternity." ******** Albert Einstein
     
cold_reality
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Oct 12, 2004, 06:49 PM
 
Oh well, its only the American tax payers' money right?

...completely against political racism!
     
Dakar
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Oct 12, 2004, 06:54 PM
 
Sometimes I wonder why I have that distrust of corporations...
...this never helps me get rid of it.
     
spacefreak
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Oct 13, 2004, 12:53 AM
 
We'll see how the suits and investigations go. As of now, these are only allegations made by 2 fired employees. Of course, you left that part out.

Regardless, if this overbilling is proven, then the company should have to pay. And from what the article states: "Lawyers for the two men suing Custer Battles say the firm's fraudulent charges amounted to $50 million. Federal law allows fines against companies that defraud the government in an amount equal to three times the fraudulent proceeds."

So that would be up to $150 million in fines if proven.

One thing I didn't know was...
The former employees, Robert Isakson and William Baldwin, sued under a federal law that allows citizens to sue on behalf of the government when they suspect fraud in federal contracting. Should they win, those who bring the lawsuit can get up to 30 percent of the money recovered from the contractor.
These 2 guys can go from being unemployed to splitting $45 million w/ their lawyers (30% of $150 million).

I'm curious to see how this suit proceeds. Looking at the numbers, and seeing what the unemployed plaintiffs could make off with, I'm a bit suspect of the allegations and the accusers.
     
dialo
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Oct 13, 2004, 01:31 AM
 
The big issue here is the cold hard fact that every single conflict modern mercenaries have been involved in has ended up with them breaking the law, creating their own regional 'political systems,' getting involved with drug or human trafficking and operating completely outside the law of any involved country. After all, what jurisdiction do mercenaries fall under? Who knows, who cares? Nobody.

And this has been the case for decades. Centuries, if you want to be specific. For most of the 20th century it was confined to africa, but times are changing.

You know who will replace to the UN blue helmets? Mercenaries.

So call it like it is. The problem is that the most notoriously corrupt political/military entity is being encouraged. And we haven't even heard the beginning of what has gone on in Iraq. In every single conflict in which modern mercenaries have been involved (for sierra leone to yugoslavia and beyond), major, major corruption and crime has been uncovered.

And for you that think mercenaries are the greatest thing in the world: if you aren't an investor, then you are just a clueless poseur.
     
angaq0k  (op)
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Oct 13, 2004, 10:02 PM
 
Originally posted by spacefreak:
We'll see how the suits and investigations go. As of now, these are only allegations made by 2 fired employees. Of course, you left that part out.
As I left many other parts like the hostage taking part as well.

Regardless,
Well, if that is not so important to make your point, why mentioning it in the first place?

if this overbilling is proven, then the company should have to pay. And from what the article states: "Lawyers for the two men suing Custer Battles say the firm's fraudulent charges amounted to $50 million. Federal law allows fines against companies that defraud the government in an amount equal to three times the fraudulent proceeds."

So that would be up to $150 million in fines if proven.

One thing I didn't know was...These 2 guys can go from being unemployed to splitting $45 million w/ their lawyers (30% of $150 million).

I'm curious to see how this suit proceeds. Looking at the numbers, and seeing what the unemployed plaintiffs could make off with, I'm a bit suspect of the allegations and the accusers.
Well, maybe we will know. And maybe not. I am waiting.
"******* politics is for the ******* moment. ******** equations are for ******** Eternity." ******** Albert Einstein
     
   
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