Bill would boot security contractors from Mideast

Iraq's Hired Hands Under Fire
as the Pot of Gold Starts to Run Low
By Ewen MacAskill and Richard Norton-Taylor
Guardian
September 22, 2007

No exodus

British companies were yesterday reluctant to comment on Blackwater. However, one described the company as being at the "aggressive end of the market", and expressed surprise that the state department still employed them. But there are still profits to be made in Iraq. Earlier this month the Pentagon renewed its contract with Aegis, a British company run by Tim Spicer, a former colonel in the Scots Guards, at $475m over two years, the biggest single deal in Iraq, to provide "reconstruction security support services". All the directors of British private security companies said business will improve when the security situation improves. "There is no great exodus, nothing to panic about," said William James, spokesman for the Olive Group.

Companies are looking at work in other countries, such as Afghanistan and Sudan. Blackwater is diversifying into training US law enforcement officers. Some companies may also move into helping protect humanitarian work, though aid organisations are nervous about this. John Hilary, War on Want's director of campaigns and policy, said: "There is a massive difference between the provision of security and paramilitary services and the hearts and minds work of delivering humanitarian aid. They are not compatible industries." As for Iraq, the private security guards are largely unrepentant about their role over the last four years. One of them said: "Someone had to fill the void."
http://www.globalpolicy.org/security/issues/iraq/contract/2007/0922guardianblack.htm

A Very Private War
By Jeremy Scahill
Guardian
August 1, 2007
http://www.globalpolicy.org/security/issues/iraq/contract/2007/0801privatewar.htm
There are now 630 companies working in Iraq on contract for the US government, with personnel from more than 100 countries offering services ranging from cooking and driving to the protection of high-ranking army officers. Their 180,000 employees now outnumber America's 160,000 official troops. The precise number of mercenaries is unclear, but last year, a US government report identified 48,000 employees of private military/security firms.

Blackwater is far from being the biggest mercenary firm operating in Iraq, nor is it the most profitable. But it has the closest proximity to the throne in Washington and to radical rightwing causes, leading some critics to label it a "Republican guard". Blackwater offers the services of some of the most elite forces in the world and is tasked with some of the occupation's most "mission-critical" activities, namely keeping alive the most hated men in Baghdad - a fact it has deftly used as a marketing tool. Since the Iraq invasion began four years ago, Blackwater has emerged out of its compound near the Great Dismal Swamp of North Carolina as the trendsetter of the mercenary industry, leading the way toward a legitimisation of one of the world's dirtiest professions. And it owes its meteoric rise to the policies of the Bush administration.

Since the launch of the "war on terror", the administration has funnelled billions of dollars in public funds to US war corporations such as Blackwater USA, DynCorp and Triple Canopy. These companies have used the money to build up private armies that rival or outgun many of the world's national militaries.
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While precise data on the extent of American spending on mercenary services is nearly impossible to obtain, Congressional sources say that the US has spent at least $6bn (£3bn) in Iraq, while Britain has spent some £200m. Like America, Britain has used private security from firms like ArmorGroup to guard Foreign Office and International Development officials in Iraq. Other British firms are used to protect private companies and media, but UK firms do their biggest business with Washington. The single largest US contract for private security in Iraq has for years been held by the British firm Aegis, headed by Tim Spicer, the retired British lieutenant-colonel who was implicated in the Arms to Africa scandal of the late 1990s, when weapons were shipped to a Sierra Leone militia leader during a weapons embargo. Aegis's Iraq contract - essentially coordinating the private military firms in Iraq - was valued at approximately $300m (£1147m) and drew protests from US competitors and lawmakers.

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In Iraq, many contractors are run by Americans or Britons and have elite forces staffed by well-trained veterans of powerful militaries for use in sensitive actions or operations. But lower down, the ranks are filled by Iraqis and third-country nationals. Hundreds of Chilean mercenaries, for example, have been deployed by US companies such as Blackwater and Triple Canopy, despite the fact that Chile opposed the invasion and continues to oppose the occupation of Iraq. Some of the Chileans are alleged to be seasoned veterans of the Pinochet era.
Some 118,000 of the estimated 180,000 contractors in Iraq are Iraqis. The mercenary industry points to this as encouraging: we are giving Iraqis jobs, albeit occupying their own country in the service of a private corporation hired by a hostile invading power. As Doug Brooks, the head of the Orwellian-named mercenary trade group, the International Peace Operations Association, argued early in the occupation, "Museums do not need to be guarded by Abrams tanks when an Iraqi security guard working for a contractor can do the same job for less than one-50th of what it costs to maintain an American soldier. Hiring local guards gives Iraqis a stake in a successful future for their country. They use their pay to support their families and stimulate the economy. Perhaps most significantly, every guard means one less potential guerrilla."
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In the case of Iraq, what is particularly frightening is that the US and UK governments could give the public the false impression that the occupation was being scaled down, while in reality it was simply being privatised. Indeed, shortly after Tony Blair announced that he wanted to withdraw 1,600 soldiers from Basra, reports emerged that the British government was considering sending in private security companies to "fill the gap left behind".

Outsourcing is increasingly extending to extremely sensitive sectors, including intelligence. The investigative blogger RJ Hillhouse, whose site TheSpyWhoBilledMe.com regularly breaks news on the clandestine world of private contractors and US intelligence, recently established that Washington spends $42bn (£21bn) annually on private intelligence contractors, up from $18bn in 2000. Currently, that spending represents 70% of the US intelligence budget.

But the mercenary forces are also diversifying geographically: in Latin America, the massive US firm DynCorp is operating in Colombia, Bolivia and other countries as part of the "war on drugs" - US defence contractors are receiving nearly half the $630m in US military aid for Colombia; in Africa, mercenaries are deploying in Somalia, Congo and Sudan and increasingly have their sights set on tapping into the hefty UN peacekeeping budget; inside the US, private security staff now outnumber official law enforcement. Heavily armed mercenaries were deployed in the aftermath of Hurricane Katrina, while there are proposals to privatise the US border patrol. Brooks, the private military industry lobbyist, says people should not become "overly obsessed with Iraq", saying his association's member companies "have more personnel working in UN and African Union peace operations than all but a handful of countries".

'Mercenaries' to Fill Iraq Troop Gap
By Brian Brady
Scotsman
February 25, 2007

Ministers are negotiating multi-million-pound contracts with private security firms to cover some of the gaps created by British troop withdrawals. Days after Tony Blair revealed that he wanted to withdraw 1,600 soldiers from war-torn Basra within months, it has emerged that civil servants hope "mercenaries" can help fill the gap left behind. Officials from the Foreign Office and Ministry of Defence will meet representatives from the private security industry within the next month to discuss "options" for increasing their business in Iraq in the coming years.
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The size of the private-security companies market is difficult to determine, but an estimated 10,000 to 30,000 private security contractors are thought to be working in Iraq. At a conference of British private-security companies last month, delegates said that the industry had increased about tenfold over the past decade and was worth the equivalent of about $4bn (£2.04bn) a year.
http://www.globalpolicy.org/security/issues/iraq/contract/2007/0225mercenariesfill.htm

UN on the Offensive Against Iraq Mercenaries
By Daniela Estrada and Gustavo González
Inter Press Service
July 13, 2007
http://www.globalpolicy.org/nations/sovereign/military/0713iraq.htm
Mercenary recruitment agencies that send former soldiers to Iraq have been accused in Chile of human right abuses, illegal association, possession of explosives and unauthorised use of army weaponry, and are the target of a special United Nations mission.
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Navarro said that U.S. private security companies such as Blackwater and Triple Canopy, who recruit guards at the request of the U.S. government to send into armed conflict zones to protect strategic installations, tend to subcontract to South American firms like Red Táctica Consulting Group. The owner of the Washington-based Red Táctica is José Miguel Pizarro, a retired general of the Chilean army who lives in the U.S. He is also known as a commentator on Iraq security issues for the U.S. news service CNN. Pizarro had at first agreed to meet with the UN mission in Santiago, but later changed his mind, saying that Gómez del Prado is not impartial and has taken an "anti-American" stance, according to Gómez del Prado himself.
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Chile has been a country of concern to the UNWG since 2004, when it was reported that 124 former Chilean soldiers were in Iraq. Sources in Santiago estimate that there are currently 500 Chilean mercenaries there, while Navarro says there are 1,000. The university experts at the meeting said that Chile has copious legislation on private security services, but mercenaries are not outlawed, so that it is essential for the country to ratify the UN Convention and adjust its domestic legislation accordingly.
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Although he said he was treated well by Triple Canopy, the firm that subcontracted Global Guard's services, Maturana was indignant when he found out how much profit Pizarro was making. The U.S. firm paid Pizarro between 8,000 and 15,000 dollars a month for each mercenary, more than 10 times what they were getting. "He pocketed about 10,000 dollars for every one of us," he said. The former soldier says that Triple Canopy offered him a job with them at 15,000 dollars a month, because of his professionalism. But Pizarro did not like this move at all, and physically assaulted the two brothers, kidnapping them for six days, after which they were rescued by Fijian guards. They returned to Chile without having been paid any of their wages. Another of their brothers, who had travelled to Iraq later on, also had difficulty in leaving the country. Maturana said Pizarro's firm was "a mafia", but he defended the work he did in Iraq.