Blackwater founder cutting ties with company

[OakRidgeStars]

I thought this was an interesting, although slightly biased, article about Blackwater.

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http://hamptonroads.com/2009/12/blackwa ... es-company

RALEIGH

The man who built Blackwater USA into one of the world's most respected and reviled defense contractors feels that he was thrown under the bus after serving the nation's security interests for years.

Erik Prince's company, which renamed itself Xe Services in February after an uproar over its Iraq operations, has worked closely for years with the CIA, the State Department and the U.S. military. But it became the target of a series of federal investigations and congressional probes, primarily for its Iraq work. Most recently, officials disclosed that the CIA tapped the company to work under a program to capture or kill terrorists.

The 40-year-old heir to a Michigan auto parts fortune told Vanity Fair in an interview released Wednesday that Xe now pays $2 million a month in legal bills. The company is headquartered in Moyock in northeastern North Carolina,

"I put myself and my company at the CIA's disposal for some very risky missions," Prince told Vanity Fair for its January issue. "But when it became politically expedient to do so, someone threw me under the bus."

Prince likened his case to the leak of former CIA operative Valerie Plame's identity ¨ a disclosure that led to a special prosecutor investigating the matter.

"Well, what happened to me was worse," Prince said. "People acting for political reasons disclosed not only the existence of a very sensitive program but my name along with it."

With his auto parts inheritance, Prince founded Blackwater in 1997 along with former colleagues from the Navy SEALs. After the Sept. 11 attacks, the company quickly developed a presence providing security and later won a lucrative contract to protect diplomats in Iraq.

A September 2007 shooting in a Baghdad square that led to federal charges against company contractors triggered outrage in Iraq and the United States and prompted the eventual State Department decision not to renew Blackwater's contract protecting diplomats in Iraq. Executives at the company bemoaned that the work had tarnished the company's image.

"The experience we've had would certainly be a disincentive to any other companies that want to step in and put their entire business at risk," Prince said in a 2008 interview with The Associated Press.

The company's work for the U.S. government was lucrative. The Iraq contract at one point consisted of one-third of company revenues, and executives have for years been eyeing a goal of $1 billion in annual revenues, although the privately owned company does not release financial figures.

Prince announced earlier this year that he would relinquish involvement in the company's day-to-day business as part of a management shake-up, and company spokeswoman Stacy DeLuke said Wednesday that Prince also plans to give up some of his ownership rights. He is considering becoming a high school teacher.

Joseph Yorio, recently a vice president at DHL and a former Army special forces officer, is Xe Services new president. Danielle Esposito, who has worked within Xe for nearly 10 years, is serving as chief operating officer and executive vice president. The CEO position has not been filled.

The company has been beset by lawsuits and complaints over its work in the Iraq War, where it was a contracter providing security to U.S. government officials, and in other company endeavors.

In August, two men who worked for Blackwater alleged in a federal lawsuit [1] that Prince or his agents murdered one or more people who were planning to provide information to federal authorities about criminal conduct by the company and its operatives in Iraq.

In a sworn statement, a John Doe #1 says he observed multiple incidents of Blackwater personnel intentionally using unnecessary, excessive and unjustified deadly force.

A lawsuit filed this spring [2] alleges that sailors on the company's anti-piracy vessel McArthur were subjected to verbal and physical abuse, alcohol-fueled outbursts, racial harassment and retaliation and the punishments included being clapped in irons. A Xe spokeswoman said the company investigated the allegations, and employees were terminated as a result.

[novasig226r]

I'm reading Scahill's book about Blackwater now. The book thoroughly cites references (which I haven't followed up on), and if what I'm reading is truthful, our government is getting really friggin scary.

High powered politicians actually setting themselves up for huge financial gains through war. Cheney and Halliburton is only one example, but Cheney and other big ticket politicos also apparently pushed hard on getting oil deals in the Caspian Sea. Blackwater was contracted to do the security. They were awarded no-bid contracts for Iraq and Afghanistan deals.

A very good read so far. Lots of people support Blackwater, but from my reading so far, why are they above the law? J. Paul Bremer's Order 17 gave the Blackwater guys immunity from any prosecution. US troops are held to the UCMJ, but private military contractors get a "Get out of Jail Free" card?

Anyway, I'd recommend reading it - no matter one's personal views on the war/Blackwater/politicians/etc.

[45XDC]

Lots of people support Blackwater, but from my reading so far, why are they above the law? J. Paul Bremer's Order 17 gave the Blackwater guys immunity from any prosecution. US troops are held to the UCMJ, but private military contractors get a "Get out of Jail Free" card?

Why? Working for the CIA; murder even if its subject is deserving isn't exactly legal. Why would any one, or Company for that matter, do contract work of that nature if they were subject to legal action? These "actions" by Blackwater contractors should never have made it to the mass media. It undermines our presence in the region in much the same way that accusing our brave SEAL Teams members of ruffing up a terrorist does. I hope they did! This type of information SHOULD have remained classified. I don't have a problem with an operator punching a terrorist, although I'd recommend a double tap. IMO, if you want to find the real criminals: ASK, who leaked this story and why? Why should a major news outlet be notified that Navy meanies gave a man, whose greatest desire is to do the US harm a tummy ache?
I hope my opinions do not disqualify me from sitting as a member of their jury at court martial should I be lucky enough to be chosen.