Cross-posted at Facing South
[UPDATE: Watch the hearings LIVE, right now, here. (Thanks bumblebums) Blackwater and the war profiteers are getting raked over the coals. Further updates below ...]
As Rep. Henry Waxman (D-CA) gears up for the second day of his House Hearings on Waste, Fraud and Abuse of Taxpayer Dollars, the focus will shift to North Carolina-based Blackwater International.
The secretive security firm made headlines in Iraq when, in March 2004, four Blackwater employees were ambushed and gruesomely killed. Six more were killed in April 2005 when their Mi-8 helicopter was shot down.
Blackwater's ill-fated presence in Iraq has been especially curious because, for many of their missions, no one could find the U.S. contract that actually authorized them to be working there.
UNTIL NOW. Yesterday, the Army finally disclosed who had sub-contracted Blackwater's operations -- and it's none other than our good friends Halliburton (via AP):
After numerous denials, the Pentagon has confirmed that a North Carolina company provided armed security guards in Iraq under a subcontract that was buried so deeply the government could not find it.
The secretary of the Army on Tuesday wrote two Democratic lawmakers that the Blackwater USA contract was part of a huge military support operation by run by Halliburton subsidiary KBR.
Vice President Dick Cheney ran Halliburton before he became vice president.
Several times last year, Pentagon officials told inquiring lawmakers they could find no evidence of the Blackwater contract. Blackwater, of Moyock, North Carolina, did not respond to several requests for comment.
As the AP notes, the Halliburton/Blackwater episode not only exposes the (intentionally?) impenetrable maze of military contracting; it was also likely against the law:
The discovery shows the dense world of Iraq contracting, where the main contractor hires subcontractors who then hire additional subcontractors. Each company tacks on a charge for overhead, a cost that works its way up to U.S. taxpayers. [...]
The hidden contract not only cost taxpayers money, it also might have been illegal. The Halliburton subsidiary's main contract for military support services prohibited hiring subcontractors to provide armed security. That job is left to the U.S. military, unless the theater commander decides otherwise.
Armed with these new revelations, Waxman's hearings today promise to be full of fireworks. The hearings will include testimony from four widows/family members of killed Blackwater employees, including Kristal Batalona (daughter of Wesley Batalona); Kathryn Helvenston-Wettengel (mother of Stephen Helvenston); Rhonda Teague (wife of Michael Teague); and Donna Zovko (mother of Jerry Zovko).
Spokespeople for Blackwater, the Army, and other contractors will also say their piece -- and will likely face some tough questions, if Waxman's description of today's hearings is any guide:
Family members of four Blackwater employees killed in Fallujah will testify about what they view as profiteering by Blackwater USA, including the company’s alleged failure to provide armored vehicles and other critical safety equipment. The Committee will also examine in detail Blackwater’s security operations in Iraq under multiple layers of contracts and subcontracts that compound costs to the taxpayer.
Can we now suspend further contracts for Halliburton (pdf)? Or set up a Truman Commission to oversee war contracts and hold profiteers accountable?
For more on Blackwater, see Jeremy Scahill's excellent investigations in The Nation.
UPDATE 2: The contractor flacks look terrified, and they've only given their perfunctory opening statements.
UPDATE 3: Blackwater lawyer focusing on how great their employees are, completely ignoring contracting problems and charges that Blackwater acting as a loose cannon. Will have to wait for Q&A.
UPDATE 4: Fluor flack only one to even mention accountability and acknowledge problems. Even claiming to "welcome" greater oversite. Blackwater, Halliburton PR guys not happy, he's clearly off message.
UPDATE 5: Like what Waxman is doing? Have other feedback for the committee?? Email and let them know: oversight@mail.house.gov (thanks Red no more)
UPDATE 6: Waxman now asking Blackwater guy about Fallujah, the episode that revealed Blackwater's role in Iraq. Tension rising and we still have 3 hours to go ...
UPDATE 7: A shameless plug -- the Institute for Southern Studies (where I work) has been investigating the war profiteers for several years. You can read more here, as well as at our blog Facing South. /end shameless plug
UPDATE 8: Did the Army spokeswoman just admit she has no idea how many security contractors are working for the Army? Waxman now pointing out that they asked her to testify to provide information, and she isn't. Her answer: "Sir, I did not come prepared to answer that question." Amazing.
UPDATE 9: Rep. John Tierny (D-MA), who introduced legislation for a Truman oversight committee, now moving in with hard questions. Flacks are shaking, clearly not used to this kind of scrutiny.
UPDATE 10: AP story has been edited, offending passage suggesting that Halliburton/Blackwater deal "might have been" illegal removed. Backlash to public scrutiny of how corporations spend public money is underway ... (thanks retired)
UPDATE 11: Rep. Lynch (D-MA) confronts Blackwater with evidence that they skimmed off 23% profit in their State Department contract, which previously hadn't even been disclosed. Blackwater flack has developed a stutter, can't answer question.
UPDATE 12: About to reconvene. Will be in and out covering; see excellent comments by Timroff and others below for liveblogging. Having trouble keeping track of the players? Here's a witness list ... Gavel hit at 2:53 pm, show time.
UPDATE 13: Breaking AP report: "Three Army Reserve officers and a U.S. contractor were indicted Wednesday as part of a bid-rigging scam that steered millions of dollars of Iraq reconstruction projects to a contractor in exchange for cash, luxury cars, jewelry and other pricey goods." They scammed $8 million, peanuts by Halliburton standards. Waxman hearings having impact ...
UPDATE 14: Rep. McHenry (R-NC) trying to pin contracting scandals on Clinton administration. Why is this relevant? I haven't yet heard Democratic panel members mention Bush; thought the committee was focusing on lost money, contracting abuses, etc. Only partisan element is that GOP-led congress didn't hold hearings while billions of contract money was being wasted; Dems are. Feel free to mention this to McHenry ... Ah, now calling it a "show trial" put on by "Democratic trial lawyers" ... Waxman now taking McHenry to the mat. Poor boy. ... Slam of the day (Waxman to McHenry): "I suggest the Congressman return under his rock." Ouch! ... Number for McHenry's office: 202.225.2576. Fax: 202.225.0316
UPDATE 15: Rep. Kucinich (D-OH) up, asking why Blackwater suing families of those killed in Iraq. A tough day to be a war profiteer ... Also pointing out that Blackwater lied in previous committee hearings, "under oath." That doesn't sound good.
UPDATE 16: Sorry folks had to go into a meeting. The hearing is over; sounds like they kept the profiteers' feet to the fire ... Is it true there's no video of the hearings? What about a transcript? ... As for next steps:
(1) Contact the committee and THANK THEM for their work (see Update #5);
(2) Say that you fully support the creation of a Truman Commission to watchdog military contractors, as proposed by Rep. Tierny and others (see Update #9); and
(3) Also say it's time to cut off Halliburton, they don't deserve another dime of U.S. taxpayer money (visit www.halliburtonwatch.org)
UPDATE 17: If you find a video of the hearings anywhere, email me. Let's get choice bits up on YouTube and everywhere else, pronto!
UPDATE 18: Need to go to a meeting, my work here is done ;) Hope this was useful, thanks y'all for the great discussion. Don't forget to pay us a visit at the Institute and Facing South. And let's keep the momentum going to stop the war profiteers!
UPDATE 19 (7:36 pm): Still #1 diary? Guess people are excited about this exercise in investigative power! ... We were looking for YouTube links -- courtesy of Jesse (see bottom of thread), they're here!
Waxman hearing #1
Waxman hearing #2
Waxman hearing #3
Waxman hearing #4
Go forth and be viral!
UPDATE 20: Tune in tomorrow at 10 am for more fun as Waxman and the gang take on Management of Large Homeland Security Contracts, complete with flack testimony from Boeing, Lockheed and Northrop Grumman! Maybe this one will make it onto C-SPAN. See you there ...
UPDATE 21: Today's hearing was on at 8 on C-SPAN and will re-show at 2 am for you night-owls. See schedule here.
UPDATE 22: Should we start a thread for today's (Thursday) hearings on Homeland Security? I won't be able to liveblog but if others are interested in following and reporting ...