Posts Tagged ‘jobs’

Mercenaries and murder in Iraq

Saturday, August 15th, 2009

As private security firms take on more responsibility in Iraq, no amount of regulation can stop tragedies from happening

Eric Stoner

By Eric Stoner (Guardian)

It would be nice to celebrate the recent withdrawal of the remaining British troops from Iraq as the end of the UK’s direct involvement in the military occupation there. But such festivities would unfortunately be premature.

The killing last Sunday in Baghdad’s Green Zone of two armed contractors working for the London-based mercenary firm ArmorGroup by another British contractor from the company, serves as a grim reminder that Brits are still deeply involved in the prosecution of the war.

In fact, with no countries officially left in the so-called “coalition of the willing”, contractors are now playing a more important role than ever, as the Obama administration begins to slowly scale back the war in Iraq.

In June, a Pentagon report revealed that there are still 132,610 contractors in Iraq – effectively doubling the size of the occupation – and that the use of armed “private security contractors” in the country actually increased by 23% during the second quarter of 2009.

The US defence department doesn’t break down its data by nationality, but the report does specify that there are 60,244 “third country nationals”, or contractors that are neither American nor Iraqi, on the payroll in Iraq. Therefore, the number of British citizens that are part of this shadow army is likely in the thousands.

Sunday’s shooting should also dispel the myth, if anyone still believes it, that incidents like this are somehow avoidable. Unlike its competitors Dyncorp, Triple Canopy and Blackwater, whose outrageous scandals continue to mount, ArmorGroup has with few exceptions managed to steer clear of negative press.

Moreover, the company has been an outspoken advocate for more rigorous vetting of armed contractors and for greater outside regulation of the industry as a whole. Back in 2005, for example, an ArmorGroup spokesman said: “We are demanding regulation. It is extraordinary that … any Joe Public can get a Kalashnikov and work with a security company abroad. This is an issue of accountability.”

But when ArmorGroup hired Daniel Fitzsimons, who shot his two co-workers during a scuffle after a late night of drinking, the obvious warning signs were not heeded.

In 2007, Fitzsimons was fired and fined $3,000 for “extreme negligence” by Aegis, another British mercenary firm in Iraq, after only a few months on the job. Colleagues said that he had a history of violent conduct and had “been a loose cannon for years”.

Not surprisingly, Fitzsimons was also apparently traumatised by his experiences in war. On his Facebook and MySpace profiles he wrote about the challenges of the “war inside your head” and his constant use of alcohol and drugs to numb the pain.

“When I come home from each rotation I give my liver, kidneys and brain cells a good hiding to teach them a lesson, and to help me achieve this I get as wasted as possible at every opportunity,” he wrote. “Remember reality is a condition caused by lack of drugs.”

ArmorGroup apparently did not pick up on these red flags, however, perhaps because such personal problems are likely par for the course when you enter the world of mercenaries. “Violent conduct” isn’t a worrisome trait, but in the end what these security contractors are trained to do. Hence, just as the “laws of war” have not stopped soldiers from torturing and committing war crimes, no amount of internal vetting or government regulation of the mercenary industry – even with the best of intentions – will be able to stop such tragedies from happening again.

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Life of a mercenary: dodging death for dollars

Tuesday, August 11th, 2009

By Scott Casey of The Brisbane Times

The opportunity to earn up to triple his normal salary proved as irresistible to Darren Hoare as it has to thousands of other former soldiers.

Over the past few years, these ex-servicemen regularly farewelled family and friends to fight in the private armies securing the deadly streets of Iraq.

Mr Hoare, a former RAAF airman and father of three from Willowbank, west of Brisbane, was killed on Sunday, one of two contractors allegedly shot during an argument with a fellow mercenary.

The deaths have once again cast a shadow on the fast-growing private security industry.

British newspaper The Times estimates there are 132,610 contractors working in Iraq for 32 security companies from the US and UK.

The contractors tend to be men with military backgrounds, who have traded in their uniforms to become guns for hire.

They are paid upwards of $1000 a day by private companies, governments or aid groups to act as bodyguards for VIPs or dignitaries and guard facilities.

“There’s some very good firms – which countries like Australian and the United States procure services from for various security activities – all the way down to the so called ‘mom and pop’ shops where a few people have set up a company providing services of questionable quality,” he said.

“The lack of training comes through in the sort of things that go wrong, even some of the top tier firms sometimes have problems.”

In 2004 the Brookings Institute’s Peter Singer said regulation was stricter for the cheese industry than private security work.

“The way I view it is that we have this new industry, $100 billion industry, and yet it’s less regulated than the cheese industry-and more important, it’s operating in warfare itself … as governments we’re not good clients of this industry, or rather dumb clients of this industry, and we’re completely absent in a regulatory task,” Mr Singer told ABC Radio National in an interview.

But Major General Molan said during his time in Iraq most of his experiences with private security contractors had been positive.

“There have been some serious failures that we have all heard of, but on the scale of what these guys do across all of Iraq it is almost negligible,” he said.

“They are not a bunch of totally mercenary thugs as popular wisdom has it, but like any organisation or military you will always find one or two nutcases amongst them.

“Generally, I found them absolutely committed to our cause, responsible, mature and all they wanted to do, apart from make a bunch of money, was to do their job within the law as ethically as possible and live at the end to walk away.”

However, it doesn’t always work out that way. The Times estimates 520 foreign security contractors have been killed in Iraq.

But with safety likely to remain an ongoing issue in Iraq in the forseeable future, the number of men willing to risk their lives for money seems unlikely to fall.

“I wouldn’t call it (Iraq) a secure situation – people with commercial and diplomatic interests are still going to be using private security for some time to come,” Mr Thompson said.

Mr Hoare, who had served in Iraq with the RAAF as a ground defence expert, worked for British firm ArmorGroup, a division of G4S Risk Management, which advertises protective security in “complex or sensitive environments”.

According to its website, ArmorGroup also offers training in crisis management for dealing with abduction, kidnap for ransom and extortion and reconstruction work.

Such dangers make for an explosive work environment.

“The reality of the security contracting population in Iraq is that everyone carries a gun … an argument which may in our society end up with someone punching someone, may go in the direction of someone pulling a gun,” Major General (Retd) AO DSC Jim Molan, chief of operations in Iraq during 2004 and 2005, told brisbanetimes.com.au yesterday.

The mercenary industry arose out of the military cutbacks that followed the end of the Cold War.

Governments around the world, financially and morally weary of maintaining large armies, disbanded significant sections of their forces and replaced them with private workers.

“There was an expectation with the Soviet threat gone people would begin to save money,” Dr Mark Thompson, a defence analyst at the Australian Strategic Policy Institute, said.

“When the US in particular began to downsize it made a business decision and that was they would downsize their support elements. .. retain the numbers of uniformed personnel as combat troops and contract out through a big one off contract for all that logistics support.

“That set the scene for Iraq and then on top of that all these people needed to be protected so a secondary sector emerged that was providing security for the people who were doing the contracted logistics.”

Mr Thompson said the Australian Government had hired private security contractors to provide protection for AusAID workers in Iraq.

The United Nations has regularly expressed concern over the regulation of private security companies and earlier this year sent a working group to Afghanistan to investigate.

Currently in the US, six contractors for Blackwater Worldwide are facing charges relating to the deaths of 17 Iraqi civilians.

Just last week, former Blackwater employees testified in court that the founder of the company, Erik Prince, had murdered a staff member who worked with officials investigating the shooting.

Mr Thompson said the quality of firms and their reputations varied considerably.

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DynCorp Takes Afghanistan

Monday, August 3rd, 2009

By Nathan Vardi at Forbes Magazine

DynCorp International, the Falls Church, Va., provider of mission critical services to the U.S. military, got good news Thursday from Houston rival KBR, which said it would not be protesting the recent loss of work supporting American troops in Afghanistan to DynCorp and Fluor Group.

“We recently met with the customer for a debrief of the selection criteria and the decision metrics for the awards,” said KBR chief William Utt on KBR’s Thursday conference call. “After the debrief we decided KBR will not protest the outcome of the awards.”

The announcement was excellent news for DynCorp, which has been consistently winning government war-zone work from competitors like Blackwater USA and KBR that have had trouble in Iraq. DynCorp is counting on the expanding war in Afghanistan to provide corporate growth and was bracing for a potential challenge from KBR. It is now likely that within six months DynCorp will begin working on a five-year, $5.9 billion deal awarded in July to logistically support U.S. troops in southern Afghanistan. Fluor won the work that will be required in northern Afghanistan.

DynCorp has emerged as one of the big winners of the wars in Iraq and Afghanistan, which now generate 53% of DynCorp’s $3.1 billion of annual revenue. The company’s revenue grew 45% last year thanks to a 51%-owned joint venture that has a multiyear $4.6 billion contract to supply 9,100 linguists to translate for U.S. soldiers in Iraq.

Last year DynCorp and Fluor, together with KBR, became part of the Logistics Civil Augmentation Program, or Logcap, a huge contract once awarded exclusively to KBR. The three companies now are competitively bidding on various jobs under the wars’ biggest contract. In the last six years, Logcap has meant big revenues for KBR, which earned an estimated $700 million of income (before interest and taxes) on $31.4 billion of revenues off of the program, mostly in Iraq, but been dogged by accusations of overbilling and negligence.

In July the Pentagon announced that it planned on having DynCorp and Fluor take over KBR’s work in Afghanistan under Logcap, doing everything from providing laundry to food and fuel. The decision came as President Obama sent 20,000 additional U.S. troops to Afghanistan to go after the Taliban in an expanding war. KBR has now accepted the military’s contracting switch in Afghanistan and will focus on trying to retain its Logcap work in Iraq, which should be up for bid by the end of this year.

“We all know that there has been a lot of, I think, pressure on the Department of Defense to diversify the contractor base,” said KBR chief Utt. “I think the military wanted to get a diversity of contractors.”

It is true that Defense Department officials believe bringing a market dynamic to the big Logcap contract would help eliminate some of the war-contracting problems the military has experienced in Iraq. But it also seems like KBR is being frozen out.

On KBR’s conference call, Utt said KBR did not win Logcap’s new Afghan jobs even though one of the winning bidders submitted a more expensive proposal than his company. Under the reconfigured Logcap, KBR has been unsuccessful at getting the first four new jobs the military has put up for bid.

On the other hand, DynCorp continues to get work from companies that have had public embarrassments. Blackwater USA, now known as Xe Services, got kicked out of Iraq after its employees killed civilians in Baghdad’s Nisur Square in 2007. In June the Department of State awarded DynCorp Blackwater’s old contract to provide air-support and security for American diplomats in Iraq, worth $915 million over the next five years.

The man who benefits the most from all this is Robert McKeon, DynCorp’s chairman and head of private equity firm Veritas Capital, who Forbes recently revealed owns one-quarter of DynCorp. (See: “Wall Street Goes To War.”) The company’s stock went up 1.6% Thursday, making McKeon’s DynCorp shares worth $285 million.

Despite conceding ground in Afghanistan, KBR was still able to report a 40% rise of second quarter profit of $67 million, compared with $48 million in the second quarter of 2008.

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