Inside the world of war profiteersFrom prostitutes to Super bowl tickets, a federal probe reveals how contractors in Iraq cheated the U.S.
Federal prosecutors in Rock Island have indicted four former supervisors from KBR, the giant defense firm that holds the contract, along with a decorated Army officer and five executives from KBR subcontractors based in the U.S. or the Middle East. Those defendants, along with two other KBR employees who have pleaded guilty in Virginia, account for a third of the 36 people indicted to date on Iraq war-contract crimes, Justice Department records show.
On Wednesday, a federal judge in Rock Island sentenced the Army official, Chief Warrant Officer Peleti "Pete" Peleti Jr., to 28 months in prison for taking bribes. One Middle Eastern subcontractor treated him to a trip to the 2006 Super Bowl, a defense investigator said.
In October 2002, five months before the U.S.-led invasion of Iraq, Khan threw a birthday party for Seamans at a Tamimi "party house" near the Kuwait base known as Camp Arifjan. Khan "provided Seamans with a prostitute as a present," Rock Island prosecutors wrote in court papers. Driving Seamans back to his quarters, Khan offered kickbacks that would total $130,000.
Five days later, with Seamans and Khan hammering out the fine print, KBR awarded Tamimi the war's first $14.4 million mess hall subcontract, court records show.
In April 2003, as American troops poured into Iraq, Seamans gave Khan inside information that enabled Tamimi to secure a $2 million KBR subcontract to establish a mess hall at a Baghdad palace. Seamans submitted change orders that inflated that subcontract to $7.4 million.
A common thread runs through these cases and other KBR scandals in Iraq, from allegations the firm failed to protect employees sexually assaulted by co-workers to findings that it charged $45 per can of soda: The Pentagon has outsourced crucial troop support jobs while slashing the number of government contract watchdogs.http://www.chicagotribune.com/news/nationworld/chi-kbr-war-profiteers-feb21,0,195925,full.storyThe one sure way to fix the so-called 'inefficiency' of government is to privatize governmental functions. That opens the door for creeps from KBR to gouge the taxpayer with inflated prices, substandard services and shady business practices.
No one steals from the US taxpayer quite like a private company unleashed with little oversight.