United We Stand, Divided We Contract

The Defense Department contracts various corporations to provide services in Iraq, from security detail to U.S. ambassadors and government officials, to rebuilding roads, power grids, schools, and general infrastructure. But last year the role of private firms in Iraq was questioned after Blackwater USA, a private security firm, was accused of firing openly on civilians in Baghdad on multiple occasions. We look now at more recent news from the defense contracting sector and how it has provoked considerable controversy.

Today the inspector general of the Pentagon reports that from March 2004 through February 2006, U.S. soldiers were provided with unsafe water in latrines and showers on a base north of Baghdad. According to the Washington Post, the report blames defense contractor KBR for circulating tainted water to the 5,000 troops housed at Camp Q-West. Soldiers stationed at Camp Ar-Ramadi, a base in Anbar province, said in interviews that their water had an unusual color and scent. Unsanitary water, the Pentagon report states, caused skin irritation, infections, and diarrhea. KBR, a former Halliburton subsidiary, was hired by the Army to provide general housing needs to soldiers stationed in Iraq and Afghanistan.

Federal contracts have awarded Blackwater $1.25 billion since 2000. In September 2007, the company was accused of massacring 17 civilians in Baghdad while escorting U.S. diplomats. Today, the company is once again making headlines in the Boston Globe after House Oversight Committee Chair Henry Waxman has demanded an investigation into the company for tax fraud. By understating the number of employees in Iraq, and thus illegitimately qualifying as a small business, the company has avoided paying $50 million in taxes, claims Waxman. Blackwater officials, of course, deny any wrongdoing.

United Technologies Corporation, a major defense contractor, has made an offer to buy out Diebold Inc., a voting machine company that was accused in 2004 of facilitating election fraud in Ohio. According to Wikipedia, during 2004, United Technologies Corporation “was the sixth largest defense industry donor to political campaigns, contributing a total of $789,561. 64% of UTC's 2004 contributions went to Republicans.” Oh, but don’t worry; as you can see, the free market makes wonderful political decisions for you!

Image Credit: Flickr user Friendofdurutti