May 15, 2008
Get Out with a 'Planned' Withdrawal
A conversation with retired British Army General, Michael Rose about his book Washington's War: From Independence to Iraq.
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May 14, 2008
Pile On: More Allegations of Cover Up at State
Another claim of cover up at the State Department comes from former State Department officials on Monday who told Senate Democrats that the department shut them up on findings of widespread corruption within the Iraqi ministries.
"The Department of State's actual policies not only contradicted the anti-corruption mission but indirectly contributed to and has allowed corruption to fester at the highest levels of the Iraqi government," said Arthur Brennan, who served as director of the State Department's Office of Accountability and Transparency at the U.S. Embassy in Baghdad.
Delivering his statement to the Senate Democratic Policy Committee, the long-time Republican and former New Hampshire judge added:
"The embassy effort against corruption, including its new centerpiece, the now defunct Office of Accountability and Transparency, was little more than 'window dressing."Although Brennan only served in Baghdad a few months, his claims carry more weight because he is not the first to claim that fraud has been overlooked by the State Department. The State Department's former inspector general, Howard Krongard, resigned last November after being accused of thwarting numerous fraud investigations stemming from contracts in Iraq.
Even more curious is the predicament of Radhi Hamza al-Radhi, the former head of the Iraqi Commission on Public Integrity, who testified before Congress about rampant corruption in Iraq. The Iraqi Judge said that nearly four dozen of his staff members were killed while working for him. Radhi is now seeking asylum, but apparently, the State Department has been dragging its feet.
Notes TPMMuckraker:
One of the former officials testified that "a senior State Department official had ordered agency employees not to give al Radhi references or contact him" for help with his asylum.
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December 20, 2007
Department Head of US Embassy Project in Iraq Resigns
The person in charge of building US embassies around the world, including the controversial and beleaguered $740-million new embassy in Iraq, has tendered his resignation effective December 31.
Despite his assurances last summer that the sprawling 104-acre Baghdad embassy complex would open on schedule and on budget in September, the project is likely to be extended well into next year. (The original completion date was intended to be June 2007.)
Retired Army Maj. Gen. Charles Williams, head of the State Department's Overseas Building Operations is the third high-level State Department official to step down amid serious problems related to the U.S. State Department's Iraq mission. Earlier this month, the department’s inspector general also announced his resignation after being barraged with allegations that he covered up and ignored complaints related to the Iraq embassy and other matters. The head of diplomatic security resigned in October following growing concern over the private security firm, Blackwater.
Ongoing criminal investigations of the Iraq embassy project by the US Justice Department and Congress continue to focus on allegations of contract rigging, shoddy work and labor trafficking. The embassy contractor is Lebanese-owned, Kuwait-based First Kuwaiti General Trading and Contracting.
First Kuwaiti has been accused of tricking foreign laborers into working on the embassy, mistreating them and paying $200,000 in kickbacks in return for two unrelated Army contracts in Iraq. The company denies the charges.Two other key subjects of the investigations: James Golden, an independent contractor who continues to head the State Department's Emergency Project Coordinating Office and Mary French, Senior Project Director for the new Iraq embassy.
Project creep: The Baghdad embassy originally was to cost $592 million. But the State Department informed Congress this year that design changes and new requirements would cost an additional $144 million. Some believe those revisions will be used to repair and cover up poor work already completed. Interestingly, when the Bush administration first proposed the project, Congress rejected the suggested billion-dollar-plus price tag and trimmed the appropriations request back to $600 million. That cost seems to be creeping back upward through the backdoor.
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December 07, 2007
Krongard Resigns
The US State Department's top investigator, inspector general Howard Krongard, is resigning after being battered by allegations that he thwarted and halted investigations that might be embarrassing to the Bush Administration. Those investigations included claims of labor trafficking and poor work at the US embassy in Baghdad (related stories here, here , here, here and here), the possibility of arms trafficking by Blackwater and other matters.
Here's the Reuters bulletin.
The Washington Post fills in some details, but glosses over the allegations of labor trafficking by the embassy contractor -- probably because it was a story broken by non-mainstream media despite the fact that mainstream reporters are frequent visitors to this blog, including those with The Washington Post.
Will this be an end to the questions Krongard neglected to investigate? Or did his apparent foot-dragging cover up any tracks of wrongdoing? Stay tuned.
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November 30, 2007
Waxman Postpones Krongard Hearing
The hearing regarding the State Department Inspector General Howard Krongard previously announced for the week of December 3, 2007, has been postponed, according to a press release from the House Committee on Oversight and Government Reform.
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November 28, 2007
Christmas Greeting for US Soldiers
My friend Jodie passed this along:
A Great Idea!!!When you are making out your Christmas cards this year, please
include one to:A Recovering American Soldier
c/o Walter Reed Army Medical Center
6900 Georgia Avenue,NW
Washington,D.C. 20307-5001If you approve of the idea, please pass it on to your friends.
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November 20, 2007
Reconstruction Company Convoy Arrested
ALMCO, a Dubai-based, Iraqi-run company with lucrative US contracts in Iraq has found itself in a bad situation.
One of its convoys transporting low-wage migrant Asian workers to the airport in a dump truck apparently began shooting at civilians, according to The Washington Post:
In total, U.S. military and Iraqi officials said, 43 people were arrested: 21 Sri Lankans, 1 Indian and 9 Nepalese contractors, 10 Iraqi security guards and 2 Fijian guards. The two Fijian guards had U.S. Defense Department identity cards, according to Maj. Brad Leighton.
Soon after the shooting from the security accompanying the convoy, a street crowd surrounded the truck as Iraqi soldiers and police arrived. Then some of the soldiers got on the truck and started beating the workers. It seems the workers in the open truck were mistaken for Afghan fighters, although they were unarmed.
A policeman at the scene told AFP that the incident occurred around noon on Monday and was unprovoked.
"A truck was transporting Asian workers through Karrada, escorted by three vehicles. They were driving on the wrong side of the road and guards in the vehicle opened fire to disperse people," he said, speaking on condition of anonymity because he is not allowed to talk to the media."Because of the shooting, a 20-year-old woman was wounded in the leg," he added.
ALMCO is a US military logistics contractor for food supply, construction and training, not a security firm, Reuters reports. It also holds a contract to build a courthouse as part of US reconstruction efforts.
Statements from the firm's employees, taken in front of a civil judge, "revealed attempted murder of Iraqi civilians and other violations."
It's a sad event, given the heartfelt interview that the Iraqi head of the company, ALMCO, once gave to CNN's Jane Arraf. He says that rebuilding Iraq is his definition of jihad despite resistance from the insurgents. See Almco's Website and look under "news & events."
Obviously, Almco has also made a bundle of money. The company began in 2003 with a $500 contract to transport fuel and now holds US-funded contracts worth hundreds of millions.
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New Study: Explosive Growth for War Contracts
U.S. government contracts for work in Iraq and Afghanistan have mushroomed more than 50 percent annually, from $11 billion in 2004 to almost $17 billion in 2005 and more than $25 billion in 2006, according to a new report by the Center for Public Integrity called "Windfalls of War II" (a supplement to a previous report).
Much of the study confirms the obvious, such as KBR's top billing for $16 billion from 2004 through 2006. But it also compiles a handy list of the top 100 contractors doing business in the war zones.
Unknown Identities: One of the most interesting findings is that "Over the three years studied, more than $20 billion in contracts went to foreign companies whose identities -- at least so far -- are impossible to determine." Here's the chart.
Missing Key Company: The report seems to have missed is Kuwait-based Public Warehouse Company -- now better known as Agility. The company has billed billions of dollars on the war effort in Iraq and is a primary logistical supplier for the military and civilian forces.
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November 16, 2007
'Family Feud' in the Making for CSPAN!
Brothers Howard "Cookie" Krongard and "Buzzy" Krongard may find their family feud wheeled out into the public when Congress holds a hearing to decide whether or not Cookie told the truth under sworn testimony on Wednesday.
Cookie first said that his brother had no ties to Blackwater before the House Committee on Government Oversight and Reform.... He then said yes, indeed, his brother was affiliated with the private security firm that Cookie was charged with investigating.
Committee Chairman Henry "Inquisitor-in-Chief" Waxman now notes that there were a number of other discrepancies between Howard Krongard's testimony and what the Justice Department and senior officials in the Inspector General’s office told the Committee.
"This is a serious matter given Howard Krongard's position as the Inspector General of the State Department. I expect the Committee to hold a hearing during the week of December 3, 2007, to provide members the opportunity to assess whether the Inspector General provided truthful testimony to the Committee. "
Waxman also sent a letter to Buzzy Krongard requesting an interview and documents relating to his communications with Cookie about Blackwater. After receiving the letter, Buzzy Krongard called Committee staff and provided information that differed significantly from Cookie's testimony.
Buzzy Krongard stated that Howard Krongard called him specifically to ask about any relationship he had with Blackwater "in preparation for his testimony" to the Committee. Buzzy Krongard stated: "He asked me whether I had any financial interest or any ties to Blackwater, and so I told him ‘I'm going on their Board.'" According to Buzzy Krongard, "He responded by saying, 'Why would you do that?' and 'Are you sure that's a good idea?'" Buzzy Krongard then said, "I told him that was my decision, not his, and that we just differed on that."Buzzy Krongard stated that during the Committee hearing, he was at home watching it live. He listened to Howard Krongard's prepared opening statement. Then, he heard Howard Krongard offer spontaneously the comment that his brother had no connection to Blackwater. Buzzy Krongard said: "You could have blown me over." During the hearing, he attempted to reach Howard Krongard by telephone. Before he could reach him, Buzzy Krongard received a call from Howard Krongard and explained again that he was a member of the Board.
Waxman's letter to his committee members is here.
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Republicans Attempted to Replace Stuart Bowen with Howard Krongard
Rolling Stone retreads an old story and reminds readers that congressional Republicans once tried to replace Special Inspector General for Iraq Reconstruction Stuart Bowen with Howard "Cookie" Krongard, the State Department inspector general now accused by Democrats of covering up and thwarting numerous investigations in Iraq:
....you may remember that one of the last acts of the GOP controlled congress in 2006 was an attempt -- ultimately reversed -- to cut off funding for the special inspector general for Iraq reconstruction, Stuart Bowen, a longtime friend of Bush’s from Texas who earned the contempt of his political patrons by actually doing his job. The Republican efforts would have shut down his office -- which has exposed billions in waste, fraud, and abuse in Iraq -- and have turned over his duties to … you guessed it … Cookie Krongard.
I think the jury is still out on Bowen's work, but otherwise, here's the Rolling Stone blog by Tim Dickinson.
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Baghdad Embassy Investigations Detailed
Two key players in charge of the $736-million new U.S. Embassy project in Baghdad for more than two years have been named as targets of a US Justice Department investigation.
Both James L. Golden and Marry French work for the US State Department and both have become well-known and controversial figures among those who have worked on the sprawling project that is now said to be rife with construction problems and months behind schedule.
Golden is a hard-driving, independent contract employee hired by the State Department to oversee the project. He often led planning meetings and guided the selection of subcontractors with an influential hand.
French is the embassy project coordinator based in Baghdad. As an employee of the US State Department, she was responsible for assuring that the project was directed according to law.
Golden also is known for his hard-driving approach, his close relationship with the prime contractor, First Kuwaiti Trading and Contracting, and a penchant for identifying sole-sourced subcontractors to work on the project. Although Golden is a contractor himself, many believe he was authorized -- both tacitly and implicitly -- with sweeping authority and decision-making.
Mary French is often singled out by those familiar with the project for frequently ignoring warnings about shortcomings on the project, complaints about worker abuse, poor working conditions and allegations of labor trafficking at the project. She is also noted for a strong ambitious streak and many say that the embassy is her first large-scale project.
Both are said to have been working under enormous pressure from above to do "whatever it takes to get the project done" as part of the State Department's goal to establish a permanent, large-scale presence in Baghdad.
The two have regularly ignored emails and phone calls from me over the past two years regarding these assertions.
More to come, meanwhile,
Glenn Kessler with The Washington Post has the story.
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November 15, 2007
State Dept Investigator Backs out of Embassy Probe
Yesterday, State Department Inspector General Howard Krongard recused himself from the Blackwater investigation.
Today, the department's lead investigator has also removed himself from all queries related to corruption allegations involving the construction of the new U.S. embassy in Baghdad, according to the Associated Press.
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November 14, 2007
'Cease and Desist': Trafficking Investigation Thwarted at Baghdad Embassy
The US State Department's chief investigator, Howard Krongard, told his staff not to investigate allegations of labor trafficking at the US embassy project in Baghdad, a House Committee hearing revealed today.
During his opening comments, Rep. Henry Waxman of the House Oversight and Government Reform Committee noted:
There are also allegations that the building’s contractor, First Kuwaiti, was involved in labor trafficking. When Mr. Krongard heard that his staff might investigate this issue, he sent them an e-mail that said, as one official described it, "cease and desist all work, I’m taking care of this."
It's worse than that: I first reported allegations of labor trafficking and worker abuse in October 2006 in a now award-winning story: Flying Baghdad Embassy Express.
One source working for Krongard tells me that when the story appeared, a staff member commented: "The cat is out of the bag now."
If true it means Krongard knew about the allegations well before October 2006. (That may be, in part, because I began asking questions about similar allegations with State Department officials in April 2006.)
Nevertheless, the US Justice Department was interested soon after my story appeared, according to Waxman's investigators:
When the Justice Department expressed an interest in a possible criminal investigation and prosecution in November 2006, however, Mr. Krongard barred his staff from communicating with a Justice Department prosecutor. In an e-mail, Mr. Krongard wrote: "This is something I am working on. Please do not do anything without talking to me."
Investigators who recently resigned from Krongard's office tell me that they received "numerous" complaints from "multiple" sources in 2006 as well early 2007. Krongard deemed them unworthy of looking into until June 2007, however postponed his personal investigation until September 2007 when he visited the embassy site. At that time, Krongard interviewed six workers selected by the embassy contractor out of several thousand laborers and then took a walking tour with an armed escort.
By that time, Krongard had given a heads up to the contractor and US State Department officials overseeing the project. Many sources who were at the construction site in Baghdad say the contractor covered up its alleged mess.
Given that the embassy contractor, First Kuwaiti General Trading and Contracting, has been accused of trafficking by numerous parties in the past, (see here and here and here) some might expect Krongard to have acted far more responsibly.
Apparently, Chairman Waxman is among those.
Here is an excerpt from his committee investigation:
On a trip to Iraq with Deputy Inspector General Bill Todd...Mr. Krongard personally examined allegations that First Kuwaiti was engaged in labor trafficking. Mr. Todd told the Committee that Mr. Krongard's cursory investigation, which involved interviewing six employees pre-selected by First Kuwaiti and touring the construction site with armed guards, was "very unorthodox." Patti Boyd, the Deputy Assistant Inspector General for Audits, called Mr. Krongard’s investigation "an embarrassment to the community" and said it would "never pass muster … in any IG organization." Mr. DeDona, the Assistant Inspector General for Investigations, described Mr. Krongard's investigative approach as "ludicrous," and Brian Rubendall, a Special Agent-in-Charge, said it was "an affront … to our profession."
Interestingly enough: The Philippines also investigated First Kuwaiti after Waxman held a hearing about the trafficking allegations in late July. Phillipine officials also relied on First Kuwaiti as its primary source for the probe. The investigation resulted in the Philippine government repatriating 100 workers employed by First Kuwaiti who were found to be in Iraq illegally. I am also told by a second-hand source that India also repatriated 250 workers.
Was the Philippine investigation thorough? Perhaps.
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An Inconvenient Truth: Cookie's Brother
Mother Jones lays out a scathing case against US State Department Inspector General Howard "Cookie" Krongard and his alleged attempts to thwart an investigation of Blackwater:
Ronald Militana, a special agent for investigations in Krongard's office, launched an inquiry last March into allegations that Blackwater had smuggled weapons into Iraq. (The weapons ultimately wound up in the hands of the PKK, a Kurdish separatist group in southeastern Turkey and a U.S.-designated "foreign terrorist organization.") Militana interviewed State Department officials and a Blackwater attorney, and briefed an assistant U.S. attorney on the details of the case in preparation for a criminal prosecution. In June, with the initial legwork complete, Militana's boss, John DeDona, sent an email to Krongard, updating him on the status of the case. Krongard's cryptic response: "Please do not treat anything in the email below as having been seen by me, advised by me, or understood or approved by me. If there's something significant in the message below, please come and tell me about it."
As it turns out, Cookie's brother had accepted an offer to join Blackwater's Worldwide Advisory Board. The brother, A.B. "Buzzy" Krongard -- may also have played a part in facilitating Blackwater's $5.4 million deal for covert services in Afghanistan while he served as executive director of the CIA until his resignation in 2004.
Here's the Mother Jones story: How Cookie Crumbled.
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November 09, 2007
Army Mulls over New Logistics Contract
With KBR's multi-billion military logistics contract in Iraq and elsewhere coming to an end in December, the Army tackles a recent protest on how to award the new contract -- and possibly extend KBR's work.
Last June, the Army's Sustainment Command awarded the fourth version of its LogCAP contract to three firms: KBR of Houston; former contract holder DynCorp International LLC of Fort Worth, Texas; and Fluor Intercontinental Inc. of Greenville, S.C. Successful protests were filed the following month with the General Accounting Office, which determined that the Army badly mishandled the evaluations of five bid proposals for the lucrative contract.
Gov Exec surveys the landscape: Army weighs options as GAO sustains protests of logistics contract.
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November 08, 2007
Weapons that Went Missing in Iraq
Where did the weapons go? During a tour of the Iraqi Interior Ministry compound in eastern Baghdad, Iraqi government officials accepted estimates by American oversight officials that some 190,000 pistols and automatic rifles supplied by the United States to Iraqi forces in 2004 and 2005 were unaccounted for, reports James Glanz of The New York Times.
An October 2006 audit by the special inspector general for Iraq reconstruction said there was "questionable accuracy" and "incomplete accountability" in the way Multi-National Security Transition Command managed weapons.
Missing weapons and other materiel is not a new development: US officials were frequently aware of little or no accounting of weapons entering the country and being transferred to Iraq's Ministry of Interior, according to an email chain provided to me (contact info deleted for privacy concerns).
One former US official in Baghdad wrote in a chain of email exchanges in 2005 to other officials in 2005:
Diversions and re-allocation of great quantities of materials, including weapons, is the norm here. It is my belief that we cannot account for, and the Iraqi MOI will not account for, over 30% of everything we have issued them.... The Glocks are a prime example and now we have thousands of weapons which neither we or the MOI can account for.
Apparently, supplying police stations were a big problem in record keeping:
I have also recently provided a list of about 60 police station “requirements” which actually was already issued by the coalition but never made it to the units. This requirements list was assembled by Maj. Gen Jassim in his effort to find the “bottleneck” or “Black hole” where all the material was going to.... the Iraqi Logistics system, which does indeed exist, has been thwarted at every level, by our unwillingness to allow it to actually work. The MOI Unit commanders have been conditioned by "US" that they simply have to ask us in lieu of going through their own process.The official was especially concerned about missing armored vehicles:
The MOI is receiving hundreds of vehicles from other sources and not sharing that information us. In this JAPAN shipment there are also 150 busses and 350 sedans. We have no visibility of this stuff and MOI is not sharing the information. (The MOI does not know that this information is being shared with me).
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November 01, 2007
Forced Labor in Iraq and State Department Mutiny
Interesting that State Department employees are up in arms about the prospect of being forced to work in Iraq at the new $740-million embassy, aka, "Fort Apache on Steroids":
At the same time, the the State Department's own inspector general and trafficking in persons division (along with US news editors) have cast an intensely skeptical eye on allegations about human trafficking, worker entrapment and abusive labor practices of lowly-paid Asian laborers by the embassy contractor and US-military contractors in Iraq. Most of those companies are largely based in the Middle East.
So that Means: State Department workers making well into six figures a year (with hardship salary uplifts) don't want to go but contractors have no problem finding tens of thousands of migrant laborers out of Asia to work throughout Iraq in a war zone at wages ranging between $200 to $800 a month in a war zone?
Here's the Associated Press account of a meeting with State Department employees complaining about the mandate of required service in Iraq, portrayed as an "unusually hostile session":
... Several diplomats, backed by the vocal support of their colleagues there, vehemently complained about the prospect of so-called "directed assignments" to Iraq to make up for a lack of volunteers."Incoming is coming in every day, rockets are hitting the Green Zone," said Jack Croddy, a senior foreign service officer, referring to the highly fortified area of Baghdad where the embassy is located.
"It's one thing if someone believes in what's going on over there and volunteers, but it's another thing to send someone over there on a forced assignment," Croddy said. "I'm sorry, but basically that's a potential death sentence and you know it.... Who will raise our children if we are dead or seriously wounded?"
Posted by davidphinney at 09:40 PM | Comments (0) | TrackBack
The Mega-Bunker of Baghdad
William Langewiesche takes a look in Vanity Fair.
Of course, the project is not on budget or on time. It was originally scheduled to be finished by June 2007 and cost $592-million. Th project is now being estimated to cost $740 million and remains under construction.
Posted by davidphinney at 09:34 PM | Comments (1) | TrackBack
New Military Support Contract 'Improperly Awarded'
A new 10-year, $150 billion arrangement for providing logistical support U.S. troops around the world should be reconsidered, according to a lead government agency charged with reviewing federal contract awards. The contracts assigned the work to KBR, Fluor and DynCorp, but the General Accountability Office is challenging the deals with KBR and Fluor, according to USA Today.
The GAO claims that the Army didn't give weighty enough consideration to Pentagon auditors' concerns about the past performance of KBR and found that Fluor received "unequal treatment" in the contract competition:
The Army approved Fluor's proposal even though the proposal relied on different assumptions than those listed in the contract solicitation -- a shortcoming that hurt other bidders' proposals, the GAO said.
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October 26, 2007
Embassy Contracts under Review
Contracts won by Baghdad embassy builder First Kuwaiti General Trading and Contracting are "under review," Secretary of State Condoleezza Rice revealed during a congressional hearing Thursday.
Rice was answering questions from Rep. Tom Davis, R-Va., about why the State Department awarded the Baghdad contract to First Kuwaiti in 2005 despite allegations that the company and its founder, Lebanese businessman Wadih al Absi, engaged in a $200,000 kickback scheme on unrelated Army contracts in Iraq.
Following up on the admission, McClatchy reporter Warren P. Strobel confirmed the brief comment with other U.S. officials who said the State Department is "looking at three other subcontracts given to First Kuwaiti General Trading and Contracting Co. to build embassies and consulates in Saudi Arabia, Indonesia and the African country of Gabon."
Apparently, the company's future business depends on how quickly it resolves the problems in Baghdad, "where the massive $740-million embassy complex is behind schedule due to a series of fire safety, electrical and other flaws."
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October 25, 2007
Just Business: Buying a US Embassy Contractor
An Update: Apparently, the sale of the Baghdad embassy contractor's US partner is a done deal -- or nearly a done deal. (Sorry about the earlier typos... I was typing in the dark in an SUV in the back country.)
According to documents: Robert Farah, Paul Jureidini and Robert K. Kelley are the key players to taking control of Grunley Walsh International (according to documents), which recently won over $200 million in new State Department contracts for embassy and consulate construction in Saudi Arabia, Gabon and Indonesia. The Baghdad embassy contractor, First Kuwaiti General Trading and Contracting is the prime subcontractor to the three new contracts.
First Kuwaiti is being bombarded these days by allegations of shoddy construction, horrid labor abuse, worker smuggling, sloppy security and bribery.
Farah of Alexandria, Va., Jureidini of Mechanicsville, Va., and Kelley of Chevy Chase, Md., have apparently formed a Delaware corporation called FJK Holdings, according to documents provided to me that appear to be prepared by the Washington law firm, Morrison & Foerster. (The firm is a big reader of this silly blog. Say hello to my site meter guys!)
Robert Farah: Is the former Washington representative to First Kuwaiti. He has represented the controversial Kuwait-based, Lebanese-run contractor at State Department meetings. Lebanese by birth, Farah is also a former information officer and secretary-general for political affairs of the Lebanese Forces political party from 1986 until at least 2001. His first recorded political contribution to a US national election was in June 2006 when he gave $25,000 to the National Republican Congressional Committee. Farah began making moves around September 2006 to purchase Grunley Walsh’s newly-formed Grunley Walsh International soon after Grunley landed its first embassy work with First Kuwaiti as its prime subcontractor.
Paul Jureidini: Appears to be an associate of Armitage and Associates for many years, an organization run by the former Deputy Secretary of State from 2001 to 2005, Richard Armitage. Armitage was a campaign foreign policy adviser to George W. Bush in 2000 and part of a group led by Condoleezza Rice that called itself The Vulcans.
Robert K Kelley: Is a vice president of the public relations firm Audreac and Associates and serves an adviser to Bell Pottinger USA in Washington, DC., according to one document, which claims that Pottinger presently has classified contracts with the Multinational Corps Iraq at Camp Victory, Iraq. First Kuwaiti has a large logistics presence at Camp Victory, as well. Pottinger's mother ship owner is UK-based and ran public relations efforts for the Coalition Provisional Authority in 2004.
Posted by davidphinney at 09:28 PM | Comments (1) | TrackBack
October 24, 2007
Baghdad Embassy Contractor Wins More US Contracts
Despite allegations of poor construction, lousy and abusive labor practices and missed deadlines for completion, the Kuwaiti contractor building the new $592-million-and-counting US Embassy in Baghdad has been quietly bagging new lucrative contracts to build US diplomatic compounds around the world.
In September, First Kuwaiti General Trading and Contracting Co., won a $122-million State Department contract to build a U.S. consulate in Jeddah, Saudi Arabia, McClatchy reporter Warren P. Strobel has confirmed. Additionally, First Kuwaiti has won US embassy and consulate work over the past 13 months in Libreville, Gabon and a consulate in Surabaya, Indonesia.
Total Amount of Contracts: Well over $200 million.
First Kuwaiti has only been able to win more US State Department embassy work because it partnered with the US firm, Grunley Walsh LLC of Rockville, Md. Apparently, First Kuwaiti wields a hefty influence over management of Grunley Walsh's international operations.
Why? Because US law requires that only U.S. firms can bid on embassy construction as the prime contractor.
Strobel notes:
But industry analysts said that First Kuwaiti appears to be the financial muscle behind the partnership with Grunley Walsh. Lebanese businessman Wadih al Absi founded the company in 1996. News reports and Middle East experts say that Absi is a supporter of Lebanese Christian politician Michel Aoun, an ally of Syria and the Iranian-backed Islamic militant group Hezbollah.
Last year, First Kuwaiti's Washington representative, Robert Farah, began negotiations to buy Grunley Walsh. Farah told me recently that the negotiations were ongoing, but one State Department source believe that Farah and two other unnamed partners were successful in the purchase.
Most Amusing: First Kuwaiti has hired the public relations firm, Saylor Company, according to Strobel. The firm claims to specialize in "crisis" public relations and " is known for handling high stakes communications."
Posted by davidphinney at 10:46 PM | Comments (1) | TrackBack
Privatized War is Here to Stay
Taking the stance that the U.S. is fighting a war in Iraq with more private contractors than military personnel with a ratio estimated at around 180,000 contractors to 160,000 uniformed personnel, Reuters columnist Bernd Debusmann dishes up his realistic analysis:
Even if there were political will to stop using civilians for roles previously carried out by the military, it would take years to reverse a relentless trend towards outsourcing that began with the end of the Cold War and has accelerated since.
Meanwhile, The New York Times weighs in with a review of the US State Department's explosive reliance on outsourcing in troubled spots: State Department Use of Contractors Leaps in 4 Years.
The amount of money the State Department pays to private security and law enforcement contractors has soared to nearly $4 billion a year from $1 billion.....
Posted by davidphinney at 02:36 PM | Comments (0) | TrackBack
Iraq Revokes Security Contractor Immunity
The Iraqi government has decided to revoke immunity from prosecution that the US-led Coalition Provisional Authority extended to private security companies operating in the war-ravaged country, according to journalist Ammar Karim.
"The cabinet held a meeting yesterday and decided to scrap the article pertaining to security companies operating in Iraq that was issued by the CPA (Coalition Provision Authority) in 2004," government spokesman Ali al-Dabbagh said in a statement.
Article 1 of Section 2 of CPA order 17: Issued by then US administrator for the CPA, Paul Bremer, stipulates that the "multinational force, foreign liaison missions, their personnel, property, funds and assets and all international consultants shall be immune from Iraqi legal process."
The immunity granted to private contractors has become controversial since a series of shootings involving foreign security guards, the most infamous of them a September 16 shooting in which employees of the Blackwater firm killed 17 Iraqis in Baghdad.
Posted by davidphinney at 02:15 PM | Comments (0) | TrackBack
What Happened to Saba and Nashat?
Iraqi officials jailed two young men in the summer of 2005 for allegedly pocketing the wages of hundreds -- if not thousands -- of Iraqis working for the Sandi Group, a Washington, DC, firm doing a multi-million-dollar business in Iraq as the leading subcontractor to DynCorp's $1.2-billion Iraqi police training contract, according to sources familiar with the two men.
People working with Sandi who should know the details of the young Kurds, known as Nashat and Sabah, say they don’t know or ignore the question.
How much money did they allegedly skim from payroll? Company executives with The Sandi Group declined comment, but inside sources say salaries for Iraqi security workers averaged around $600 a month, and Sabah and Nashat are thought to have skimmed $200 off each monthly salary. Sandi documents represent Sabah as the chief of finance for the Sandi Iraq operations and Nashat as the chief of staff. If the two were in charge of a thousand workers, that could be $200,000 a month. Multiplied by 12 months and it starts adding up to big money: $2.4 million.
"When a worker complained, he would be threatened with being fired," one former Sandi employee says, who recalled Nashat driving around Iraq in a car with trunk loads of cash for payroll.
The Sandi Group and its affiliates once boasted of employing 7,500 Iraqi workers and claimed to be the largest employer in Iraq during much of 2004 and 2005.
MORE BELOW FOLD
Former Sandi employees recall Nashat and Sabah as two handsome and charming men from an area around the northern Iraqi town of Zakho, near the Turkish border. Zakho also is the hometown of Rubar Sandi, the hard-driving businessman and head of the company bearing his name. Employees recall Sandi fondly introducing Nashat and Sabah as his relatives -- some say Nashat even changed his name to Sandi. But the familial relations were more an expression of close national bonds and affection rather than blood. (Others remember Nashat's last name as either Younis or Hamed; and Sabah's as Permos or Bermos. Records represented as belonging to The Sandi Group provided by one former security guard identify them as Nashat Y. Hamed and Sabah Abdul Waheed Bermos.)
After immigrating to the United States in the 1970s, Sandi earned advanced degrees in business and economics and staked out a successful career as an entrepreneur, developer and financier. Now in his mid-50s, Sandi also cultivated friendships with prominent Republicans and became an active voice in pushing for the liberation of Iraq at the US State Department where he was an advisor in a pre-war planning effort, the "Future of Iraq Project."
Sandi returned to Iraq with the 2003 liberation and quickly scooped up interests in major hotels that were leased to other contractors, took an immediate interest in reconstruction, invested in the Al-Ahali Newspaper, and assembled the largest private security force in Iraq -- said to have numbered in the thousands.
"The Sandi Group was like an octopus," one former employee says.
At one time, sources say Sandi even entertained a bid for building the new $592-million US embassy in partnership with Philip Bloom, an American businessman who pled guilty in April 2006 to conspiracy, bribery and money laundering in connection to contracts in Iraq unrelated to Sandi. Although Sandi lost out on the embassy project, the State Department did award the company an open-ended agreement for work in Iraq when needed, including on the new embassy project.
Rubar Sandi boasted of his willingness to hire thousands of Iraqis and said it was fundamental to demonstrating support for the Iraqi people; something he encouraged other companies to do as well. Among those Iraqis that the company hired were Nashat and Saba.
"They knew Baghdad," said Louis Brown, who ran Sandi’s Iraq operation until autumn 2005 and was then based in Washington, DC as vice president of special projects until last spring before resigning. "I trusted them with my life."
Nashat, who began work with Sandi as a driver, and Sabah as an interpreter, soon rose to the highest levels of management in Iraq, Brown said.
Asked in March what happened to Nashat and Sabah and where are they now, Brown replied tersely: "I don't know."
One source laughed when told of Brown professing ignorance of his two Iraqi lieutenants, Nashat and Sabah. Loyalty and friendship may just be trumping candor.
"That sounds just like Lou," said the former employee. “But he knows exactly what happened to them and why.”
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October 23, 2007
State Department Inspector General Under Fire
(Sorry about the previous typos, guys. I am in the market for a new blog program.) The $592-million Baghdad embassy contract, the $1.2-billion police training program in Iraq and Afghanistan, and the security contract for Blackwater are all under intense scrutiny -- and so is the State Department Inspector General who is responsible for investigating these contracts after receiving credible complaints: Oversight body looks into complaints against State IG.
Circle the Wagons: GovExec reports that Krongard hired Barbara van Gelder for legal counsel. Van Gelder relates that allegations about Krongard having blocked his staff from investigations are based on “imperfect recollections.” Van Gelder recently defended the former White House contracting policy chief, David Safavian, who was found guilty in June 2006 of lying and obstructing justice as part of the Abramoff scandal.
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Iraq's Police Training Program Records in Disarray
The State Department so terribly managed a $1.2 billion contract for Iraqi police training that it can't figure out what it got for the money spent, a new report says (pdf).
Total Disarray: in invoices and records on the project -- and because the government is trying to recoup money paid inappropriately to contractor DynCorp International, LLC -- auditors have temporarily suspended their effort to review the contract's implementation, said Special Inspector General for Iraq Reconstruction Stuart W. Bowen Jr.
Maybe investigators should look into DynCorp's relationship with its prime subcontractor, Corporate Bank, aka, The Sandi Group, aka, TSG.
This is what I found in Sandi documents:
When DynCorp hired Sandi’s Corporate Bank in October 2004 to build a regional camp with 24 living trailers at Ad Diwaniyah, Corporate Bank billed $1,194,197. One month later, Corporate Bank then hired the Hozan General Construction Company of Baghdad for $605,000 to do the work. Similarly, DynCorp agreed to pay $833,680 for a 16-trailer camp at Al Kut. Corporate Bank then hired Hozan for $388,000. In Karbala, DynCorp agreed to pay $809,520. Corporate Bank turned to Hozan for $388,000.
Here's a taste of those documents....
Where to Look: Other than my thumb drives, perhaps Sandi's new office. Sources confirm that a fire broke out in Sandi's old office in December 2006. Some say all the records disappeared. Others say the records were untouched by flames because the fire took place in the basement and first floor and all of accounting and proposals were kept on floors 2 through 4.
According to Bowen's Report: Records prior to October 2006 could not be validated at the State Department. However, since October 2006, incoming invoices from DynCorp have been validated.
Sandi's Interesting Staffing:
Tim Crawley: Left DynCorp as vice president of contracting last June (2005), joined Sandi as executive vice president and general manager. At DynCorp, Crawley was responsible for "making sure that any subcontracts awarded were in compliance with all laws, regulations, and company policies -- including (where required) competitive bidding, cost-price analysis, and eligibility for award of government contracts," according to a DynCorp source. Crawley has since left Sandi, I am told.
"There’s a lot of confusion about this,” Crawley said of the contracts between DynCorp and Sandi.
Russell Hugo: Served as the Regional Director for Oversight and Support for the Department of State, Bureau for International Narcotics and Law Enforcement Affairs. In this role, he was responsible for financial controls and oversight for over twenty-five countries in Asia, Africa, Middle East and Europe -- presumably including DynCorp contracts. He is now Sandi's chief financial officer and senior vice president.
See: Marking Up the Reconstruction:
Of the seven major regional training camps ... none were visited by the State Department. The government contracting officer who authorized the spending on the projects told Bowen’s investigators that he "never visited the sites" because of security concerns and that he relied on reports from others regarding the status of the camps.
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October 21, 2007
Read It: 'Suicide Is Not Painless'
New York Times columnist Frank Rich delivers a scathing analysis of Pentagon and US government-guided procurement in Iraq begins with the suicide of Charles D. Riechers, 47, the second-highest-ranking procurement officer in the United States Air Force who killed himself by running his car’s engine in his suburban Virginia garage several weeks ago.
Riechers' job had been previously held by an officer named Darleen Druyun, who was sentenced to nine months in prison for securing jobs for herself, her daughter and her son-in-law at Boeing while favoring the company with billions of dollars of contracts. The Bush-appointed Pentagon inspector general delivered a report on Druyun to Congress was full of holes in 2005. "Specifically, black holes: dozens of the report’s passages were redacted, as were the names of many White House officials in the report’s e-mail evidence on the Boeing machinations."
Where is that inspector general now?: Joseph Schmitz, was already heading for the exit when he delivered his redacted report. His new job would be as the chief operating officer of the Prince Group, Blackwater’s parent company.
Blackwater's Lobbyist: Paul Behrends, who first represented the company as a partner in the now-defunct Alexander Strategy Group. That firm, founded by a former Tom DeLay chief of staff, proved ground zero in the Jack Abramoff scandals.
Alexander may be no more, but since then, in addition to Blackwater, Mr. Behrends's clients have included a company called the First Kuwaiti General Trading and Contracting Company, the builder of the new American embassy in Iraq.
FYI: Paul Behrends now is a Partner with C&M Capitolink LLC, a subsidiary of Crowell & Moring, the law firm now representing First Kuwaiti. Attorneys Robert Nichols and Angela Styles, President Bush’s former procurement policy director, took First Kuwaiti's account to the firm last year.
Rich Continues:
That Vatican-sized complex is the largest American embassy in the world. Now running some $144 million over its $592 million budget and months behind schedule, the project is notorious for its deficient, unsafe construction, some of which has come under criminal investigation. First Kuwaiti has also been accused of engaging in human trafficking to supply the labor force. But the current Bush-appointed State Department inspector --guess what -- has found no evidence of any wrongdoing.Both that inspector general, Howard Krongard, and First Kuwaiti are now in the cross hairs of Henry Waxman’s House oversight committee. Some of Mr. Krongard’s deputies have accused him of repeatedly halting or impeding investigations in a variety of fraud cases.
Here's the column Suicide Is Not Painless.
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October 19, 2007
Grapes and Sex and Government Contracts
Talk about low-hanging fruit:
A prostitute testified Wednesday that former U.S. Rep. Randy "Duke" Cunningham fed her grapes as she sat naked in a Jacuzzi before they headed to a bedroom at a Hawaiian resort.The woman testified at the bribery trial of defense contractor Brent Wilkes, who is accused paying the former congressman with $700,000 in cash and perks in exchange for help securing about $90 million in government contracts.
Wilkes has denied the charges.
I have as many grapes as a contractor can eat in exchange for finishing my kitchen.
The Associated Press has the story.
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Baghdad Embassy Coverup
A project manager and the State Department Inspector General covered up "enormous problems" in the management of the $592-million embassy project in Baghdad, McClatchy newspaper reporters Warren P. Strobel and Jonathan S. Landay report today.
Problems became apparent after a mortar shell smashed into the sprawling new U.S. Embassy last May, damaging a wall and causing minor injuries to people inside the building:
The State Department contractor in charge of the project, James L. Golden, attempted to alter the scene of the blast, according to government officials familiar with the incident. The State Department inspector general prevented Department officials from investigating the incident, according to interviews and documents.
Meanwhile: A congressional committee is examining whether the walls of the still-unfinished embassy complex, which are supposed to be blast-resistant, performed as they should have during the mortar attack.
More Delays: Problems with the fire suppression system were "serious," according to Patrick Kennedy, the State Department's director of management policy.
Joints in underground water mains supplying the sprinklers leaked when they were tested -- but he emphasized that this and other problems were discovered as part of OBO's rigorous inspections.
Asked when the structure would be ready to occupy, Kennedy said, "Soon. But I'm not going to tell you whether soon is in two weeks, or six weeks or eight weeks."
More details to follow when I get a moment.
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October 18, 2007
Blackwater Morphing
Robert Young Pelton's take on Blackwater -- as filtered by Dan Rather Reports on HDNet.
Petlon says the interview took place nine months ago, but was netcast only recently:
Go to minute 37:50 after first story:
Petlon and Rather talking about Blackwater.
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October 17, 2007
What is USProtect Doing in Iraq?
If these bribes between USProtect and the General Services Administration in California took place, you have to wonder how USProtect is going about its business in Iraq:
A former chief executive for USProtect, a security company pleaded guilty earlier this month to giving bribes to a contracting officer at the General Services Administration in exchange for helping win over $150 million in federal contracts for the company. (USProtect was formerly known as Holiday International Security Inc., before a name change in 2003.)
The executive and former cop, Michael B. Holiday of Silver Spring, Md., said in his plea agreement that he gave vacations and other benefits to GSA contract manager Dessie Ruth Nelson, age 65, of Oakland, Calif., in exchange for assistance in awarding three multi-million dollar contracts.
All of the contracts were in California for private security at federal buildings.
Nelson now faces charges by separate criminal information with accepting over $100,000 in bribes from Holiday and evading taxes on the bribe payments.
According to the Justice Department press release:
A former officer of the company, Richard S. Hudec, age 44, of Naples, Florida, also was charged by criminal information for a scheme to conceal material information from federal contracting officials -- including four prior felony convictions -- in connection with federal contracts worth over $150 million and tax evasion.
While USProtect CEO in 2003, Hudec was a sponsor of the famous "Gold Rush" conference in Washington, DC, for contractors wanting work in Iraq. He also had a long rap sheet -- four felony fraud convictions on his record and served time in prison as recently as 2001, according to federal court filings, The Washington Times reported.
USProtect keeps popping up at other reconstruction conferences, including one that featured Hudec as a panelist on Strategies for Entry in Iraq, What Will it Take to Structure a Deal and Eliminate Barriers of Entry? Developing the Right Practice, Setting the Stage for Effective Entry in Iraq.
Posted by davidphinney at 02:01 PM | Comments (1) | TrackBack
Unknown Number of Federal Civilian Workers
For many years, there was no accurate estimate on the number of contractors working in Iraq and Afghanistan until The Los Angeles Times came up with a headcount that contractors now outnumber the miliary.
Apparently, no official count has been made for federal civilian employees either. The Washington Post reports that the Defense Department has sent about 6,000 civil service employees to Iraq since 2001 and the Treasury Department has assigned 75 to Iraq since 2003. Otherwise, "there is no tally of how many federal employees have been deployed to Iraq or Afghanistan, and the deployments vary by agency."
Reporter Stephen Barr continues:
Federal employees are generally not ordered into war zones -- though some, because of their occupation, can be assigned to hardship posts and left with no choice but to accept or resign. For Iraq and Afghanistan, agencies have relied on qualified employees who are willing to volunteer.
The money can be good: Up to $212,100 this year in base pay and differentials. Employees also are provided with trips home and rest breaks in the region.
One problem: The pool of qualified Foreign Service officers may be shrinking because of projected retirements. Mark S. Ward, senior deputy assistant administrator for USAID's bureau for Asia and the Near East, said more than 30 percent of USAID's Foreign Service officers are eligible to retire this year, and 46 percent will be eligible by 2011.
The story begins by recognizing the death of Steven Thomas Stefani, a U.S. Forest Service employee on assignment in Afghanistan, killed by a roadside bomb near Ghazni on Oct. 4 while serving as an agricultural adviser to a provincial reconstruction team.
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October 10, 2007
Baghdad Embassy Contractor Aims for More Business
Sloppy construction, safety problems, bribes, slave-like labor practices, missed deadlines, internal disputes and inflated costs -- the new $600-million US embassy compound in Baghdad is swamped in a rising deluge of allegations from lawmakers and the news media.
Meanwhile, the former Washington representative for the Kuwait-headquartered contractor now building Baghdad embassy project is actively negotiating to buy the contractor’s US partner company -- along with contracts for classified embassy work around the world that the US State Department awarded the two companies.
Alexandria, Va., real estate agent and businessman Robert Farah has repeatedly represented the Baghdad embassy contractor First Kuwaiti General Trading and Contracting at State Department meetings in Washington. Riding on the success of winning the Baghdad deal for the largest diplomatic compound in the world, First Kuwaiti then partnered up last year with Grunley Walsh of Rockville, Md., to win other US embassy and consulate contracts in other countries worth more than a $100 million dollars.
The wedding with a US firm appears to be a key strategy for First Kuwaiti's efforts to winning more State Department business because only US-owned and headquartered companies may perform classified embassy work. And soon after the Grunley Walsh won three new contracts in Africa, India and Indonesia in September 2006 as the lead partner, Farah began making moves to purchase Grunley Walsh’s newly-formed Grunley Walsh International for an undisclosed sum along with the new embassy work.
Nothing precludes Farah from purchasing the company, although the Lebanese national and naturalized US citizen (and a former information officer and secretary-general for political affairs of the Lebanese Forces political party from 1986 until at least 2001), could be prevented from taking on classified embassy work if he used other than US-sourced financing.
Nevertheless, Farah's timing and his affiliations with First Kuwaiti as well as First Kuwaiti's apparent muscle in the ongoing management of Grunley Walsh does raise eyebrows. As one State Department career officer noted: "It's a bit strange for a newly-formed firm to win three contracts worth $150 to $200 million and then sell the company."
But that is exactly what appears to be going on according to a draft letter laying out the terms for Farah's proposed buyout. The three-page, Dec.22, 2006, document stresses that Grunley Walsh holds "secret-level security clearances issued by the U.S. Government," which are deemed essential to a potential deal. "Given that the State Department contracts require the renamed Grunley Walsh International LLC to hold a security clearance, the acquisition can occur only if the (US State Department) doesn't rescind the current security clearance based upon the name change or the change in ownership."
Attorney Robert Nichols, who drafted the letter for Farah, also had recently represented First Kuwaiti, as did Miller Chevalier law partner Angela Styles, President Bush’s former procurement policy director. Both Nichols and Styles have since moved to a new Washington law firm, Crowell & Moring, where the two continue to represent First Kuwaiti.
One February 12, 2007, Grunley Walsh also began working with staff from a Lebanese firm closely associated with First Kuwaiti, according to a document provided by a source familiar with the companies.
A document obtained by me seeks approval from the State Department for 19 senior GMD employees working with Grunley Walsh for clearance on the newly-awarded embassy contracts. GMD, also known as Global Management and Development and based in Lebanon, took part in designing and building the Baghdad embassy project as well as First Kuwaiti headquarters in Kuwait, according to the document.
In addition to representing First Kuwaiti at State Department meetings, Farah represents and is president of the Global Management and Development Group. Farah said it is only a coincidence in the similarity of names and that Global Management and Development Group is based in Virginia.
"It can be very confusing. Everyone uses the words 'Global Management,'" Farah said in a telephone interview.
Meanwhile, the marriage of Grunley Walsh and First Kuwaiti continues to be promising. First Kuwaiti and Grunley Walsh International are thought to be poised for building a State Department project in Saudi Arabia. They also were believed to have been at the top of the list for building a new US embassy in Beirut, Lebanon, that the US State Department nixed this summer after protests from the U.S. ambassador there who said the area was unsafe.
Canceling the project caused a stir within the State Department because the department’s Overseas Building Operations division, known as OBO, had already purchased land for the project for more than $22 million, according to ABCnews.com. Friction became so great that the U.S. Embassy refused to allow a State Department official managing the project, James Golden to enter the Lebanon by denying normally standard "country clearance."
Golden is an independent contractor hired by OBO to lead the independent contractor who plays an influential hand in the award of embassy construction in trouble spots around the world, including the Baghdad embassy. Multiple sources say he has spent much of his time in Kuwait and Baghdad where he played a guiding role in awarding contracts to First Kuwaiti and its subcontractors
Asked about his affiliation with First Kuwaiti, Farah said he had not worked the company for "six or seven" months, but that he was still actively negotiating a purchase of Grunley Walsh International. "Money is not a problem."
Representatives of Grunley Walsh and First Kuwaiti have not responded to numerous inquiries about their association, although it appears First Kuwaiti does wield a hefty hand in Grunley Walsh's management, according to emails and documents obtained from State Department sources.
First Kuwaiti's general manager Wadih al Absi wrote in an email to Grunley Walsh president, Kenneth M. Grunley and Farah (using a First Kuwaiti email address), outlining the chain of decision making in their partnership:
"Since we care about our relation with GW (Grunley Walsh) whether it is sold out to Mr. Robert Farah or otherwise we need to set some policies and procedures in place as to avoid further complications and to continue a good and long working relationship" al Absi wrote in reference to embassy work supervised by the State Department’s Overseas Building Operations division, known as OBO.More below the fold....
Among al-Absi’s demands, he notes:
The following is related to FKTC’s scope i.e. areas which do not require security clearance.
1. Both parties are fully aware and reconfirm that the arrangement of Prime/Subcontractor is solely for the purpose of satisfying the requirements of OBO. Each Party will be fully responsible for its own scope of work as per the initial agreement.
2. Prior to any written communications with OBO, GW shall obtain FKTC’s approval in writing. Any verbal communications shall not be binding and no decision may be formalized other than in writing.
3. GW will forward any communication received from OBO immediately to FKTC. Further FKTC shall be informed instantly of any conversations in relation to their scope of works.
4. GW shall not enter into any contracts or agreements without prior written approval of FKTC. FKTC will undertake all negotiations and finalize any agreement. GW will bear any consequences to any agreements entered without prior written approval of FKTC.
5. GW will be responsible in regard to all requirements related to their scope of works including but not limited to design requirements and personnel.
6. FKTC is responsible for providing the bonding/LC’s for any of the awarded jobs and the charges thereof shall be shared by both parties pro-rata to their scope of works.
7. GW will forward to OBO or others any communications submitted by FKTC without questioning, provided that such communications would not negatively affect GW’s image and reputation. It is FKTC sole decision whether such communications are to be discussed with GW or not prior to submittal to OBO.
8. Each party will have full control over its scope of work including but not limited to execution, procurement, recruitment and subcontracting.
9. FKTC will keep GW informed about the progress of works as it goes and of any problem are being encountered.
10. GW will finalize and submit to the bank the letter of assignment of rights to FKTC in regard to their portion of the works.11. GW and FKTC will agree on a liaison to communicate among GW, FKTC and OBO.
II. BIDDING FOR 2006 – 2007 - 20081. FKTC will decide which projects will be bid and as initially agreed each party will be responsible for the costs they incur in their own right.
2. In case GW are unable to participate within any of the bids then FKTC will arrange another cleared American firm as to participate within any such bids under GW supervision and GW fee will be agreed on.
Posted by davidphinney at 04:50 PM | Comments (3) | TrackBack
October 09, 2007
Embassy to be Finalized 'Later this Month'.... Huh?
Stop the Press: Charles Williams, director of the State Department's overseas building operations, told USA TODAY that the new embassy in Baghdad will be finalized later this month. The delay was shorter than those seen during recent construction of smaller embassies, he said.
Seems the State Department just can't get its story straight. State Department spokesman Sean McCormack said just earlier today: "I can't tell you when the embassy is going to open.... We don't have an answer."
So what's the extra $150 million in added costs going to be spent on -- a sum that has grown since last week when sources originally suggested to me would be just $100 million over budget?
We'll see.... The House Government Oversight and Reform Committee is planning a hearing on matters related to the Baghdad embassy. It may be on October 16.
Posted by davidphinney at 08:36 PM | Comments (0) | TrackBack
Baghdad Embassy Delayed Indefinitely with Cost Overruns
The opening of the mammoth new U.S. Embassy in Baghdad has been delayed indefinitely, according to Reuters as the Kuwaiti contractor "fixes a punch list of problems," the State Department said on Tuesday.
The sprawling complex, whose cost is edging toward $750 million, was set to open last month but U.S. lawmakers say shoddy work by the contractor and poor oversight by the State Department have delayed it.State Department spokesman Sean McCormack rejected claims of inadequate oversight and said there was no indication how long it would be before the new embassy opened.
"I can't tell you when the embassy is going to open," said McCormack. "We don't have an answer."
That "punch list" appears to have an estimated cost of $144 million, but McCormack suggested otherwise: original specifications of the contract changed after it became clear that more office and living space was needed for civilian and military staff.
Originally the Bush administration requested $1 billion in emergency funding to build what is touted as the largest diplomatic mission in the world. Congress balked and cut it back to $600 million, but apparently the sum is climbing skyward again.
Here's the Reuters report: Embassy opening in Baghdad delayed indefinitely
This development of delays and costs directly contradicts sworn testimony before US congress in July by the head of embassy construction who said: "We are slated to complete the project in September of this year and personnel can begin to move into offices and residences shortly thereafter."
Posted by davidphinney at 04:02 PM | Comments (0) | TrackBack
Waxman Takes More Swings at Baghdad Embassy Contractor
A leading Democrat in Congress is blasting the US State Department for apparently casting a blind eye on allegations of widespread construction flaws at the $600-million-and-counting embassy project in Baghdad.
In a letter to Secretary of State Condoleezza Rice, Rep. Henry Waxman, who chairs the House Government Oversight and Reform Committee, also questions the background of the embassy contractor First Kuwaiti General Trading and Contracting. By relaying court documents and auditing reports, he expresses outrage of an alleged $200,000 bribe and inflated costs charged to the Pentagon for military trailers in Iraq.
Here's the letter: Documents Show Extensive Flaws in Iraq Embassy Construction.
Posted by davidphinney at 12:58 PM | Comments (0) | TrackBack
October 06, 2007
US Embassy Contractor Missing Laptop?
A laptop belonging to a high-level executive supervising construction of the new US embassy in Baghdad went missing in May 2006 at the Kuwait office of the contractor hired to build the new US embassy in Baghdad.
Multiple sources formerly working with the contractor have detailed the theft of the computer, but my questions to the State Department and the contractor, First Kuwaiti General Trading and Contracting, have been met with silence.
A missing laptop from May 2006 may be of concern if it contained information about any US government projects in Iraq -- or elsewhere. The company has collected nearly $2 billion in US-funded contracts since the 2003 invasion of Iraq.
It may be of even greater concern since the laptop is said to have belonged First Kuwaiti's construction director, Samir Ida.(Remember the furor or the internet posting of architectural renderings of the embassy by the American subcontractor Berger Devine Yaeger Inc.? They are now all over the web.)
This interview from more than a year ago discusses the missing laptop with one former First Kuwaiti employee:
Q: Sounds like you have a professional job?
A: This company does not have proper procedures to be professional.
Q: What do you think happened to the laptop?
A: Well, there is a big chance that someone stole it just to get some data out of it.
Q: Hmmmmm
A: They left a wallet with money and a mobile phone lying next to it. Those things weren't stolen.
Q: Could be evidence for a fraud case?
A: I think this is what freaked out the general manager so much. Whoever did it must have known a lot about this company.
Q: Do you remember when it happened?
A: It was May 27 (2006)
Following the laptop theft, word is that First Kuwaiti's general manager, Wadih al-Absi then ordered a virtual lockdown of his Kuwait office where more than 100 employees work. He is said to have wanted the building as "secure as the Pentagon." Al -Absi immediately installed video security cameras throughout the building, curtailed all internet access, forbid most employees from using floppy disk drives and thumb drives and ordered that all telephone calls be monitored and recorded, according to sources who worked for the company at the time.
This July 23, 2007, email is one of many I sent to State Department officials and First Kuwaiti. They have all been ignored.
Ms. French,I am a journalist writing for Iraqslogger.
I have it on good sources that a laptop was stolen from a high level embassy contractor building the US embassy, First Kuwaiti General Trading and Contracting. The computer disappeared at the end of May 2006 from the offices of FKTC and possibly belonged to Samir Ida, a top executive with the company.
I am also told that you have personal knowledge that this laptop was missing.
How important was this theft to the security of the embassy?
Was a formal report ever filed?
Was the missing computer ever located?
What corrective measures were taken after the theft of the computer?
Thanks, I am on deadline and a response at your earliest opportunity would b