The art of duplicity and other news
It has been awhile since I have done a wrap-up of happenings in the cesspool we know as government contracting. Here is a list of recent events that have made the news. Blackwater/Xe has won yet another ‘get out of jail free card,’ right on the heels of securing a contract worth at least a $100 million. Our Executive branch of government is demanding a ’Do Not Pay List,’ to stop contract awards to the unsavory sorts who have their hands in the pockets of the American Taxpayer. Meanwhile the DoJ is spinning their wheels going after a scoundrel company who is based in a country that does not have an extradition treaty with the US. Is this just an example of political grandstanding to make the taxpayer think fraud, waste and abuse of our tax dollars isn’t condoned or tolerated? What about all the bad guys on this side of the pond who have overcharged, lied, cheated and stolen on multibillion dollar contracts? When are you going to start cleaning up your own backyard? Yes DoJ and Capitol Hill, I am talking to YOU! Stop nickel and diming us with indicting the little guys, start cleaning house with the robber barons who are really bilking the American Taxpayer. How about a road trip starting at 4100 Clinton Drive, Houston Texas, heading north to 13500 Heritage Parkway, Ft. Worth Texas ending in Moyock, North Carolina. Feel free to pick up any other trash you find along our US biways and highways during your trip and don’t forget to dispose of them properly!
There were several words that came to mind when thinking of a title for this post, duplicity is the only one suitable for print.
~Forseti
Obama won’t charge Blackwater with violation of Sudan sanctions
WASHINGTON — The security contractor Blackwater Worldwide tried for two years to secure lucrative defense business in Southern Sudan while the country was under U.S. economic sanctions, according to current and former U.S. officials and hundreds of pages of documents.
The effort to drum up new business in East Africa by Blackwater owner Erik Prince, a former Navy SEAL who had close ties with top officials in the George W. Bush White House and the CIA, became a major element in a continuing four-year federal investigation into allegations of sanctions violations, illegal exports and bribery.
The Obama administration, however, has decided for now not to bring criminal charges against Blackwater, according to a U.S. official close to the case. (Click HERE for Article)
Corruption leads to new rules for Afghan contracts
KABUL — During her years as chief contracting officer for the U.S. Army Corps of Engineers, Gloria Martinez steered $155 million in contracts to the construction company her sister worked for. The company collected millions even when it failed to do the work.
Martinez, her sister Dinorah Cobos and Cobos’ boss, Raymond Azar, president of the Lebanon-based construction firm Sima Salazar, carried out one of the largest contracting schemes ever perpetrated against the corps. Their capture, after a sting in Kabul in which the corps took part, illustrated the potential for fraud in handling the billions of dollars in aid to Iraq and Afghanistan. (Click HERE for article)
Defense contractor AeroVironment discloses Justice Department probe of billing practices
June 26, 2010 – The Monrovia-based robotic aircraft maker says ‘the outcome of the investigation will not have a material impact on its business,’ but its shares plunge 8% after the SEC filing.
AeroVironment Inc. shares plunged Friday after the Monrovia-based robotic aircraft maker disclosed that it has been under investigation by the U.S. Justice Department since February.
In a filing with the Securities and Exchange Commission, the company said that federal prosecutors have been probing its billing practices for government contracts dating back to fiscal 2006. It said the company “could be adversely affected by a negative audit or investigation by the U.S. government.” After the filing, AeroVironment shares fell nearly 8% to $21.43. (Click HERE for article)
Widow wants to know how contractor was killed in Bragg training
Fayetteville, N.C. — The widow of a civilian defense contractor killed Tuesday in a training accident on Fort Bragg said Friday she desperately wants to know more about how and why he died.
Eddie Jenkins, 57, was shot in the incident at Range 77, where soldiers were taking part in tactics to help prepare units for overseas missions. He died at Womack Army Medical Center.
Jenkins was an employee of Tennessee-based Echota Technologies Corp., which helps Army personnel operate tactical ranges on post. A company spokeswoman said he had worked for Echota since January. (Click HERE for article)
Keeping the Heat on Contractors
Neil Gordon – June 23, 2010 – There has been plenty of heat in Washington, D.C. recently. Monday was the official start of summer, with daily temperatures in the area reaching the high 90s. June also saw the debut of Stephen Strasburg, a 21-year-old pitcher for the Nationals who can hurl a baseball at speeds reaching—and occasionally exceeding—the high 90s.
In the meantime, Congress and the White House have been bringing the heat to contractors. The Senate introduced measures designed to broaden both the scope and visibility of the Federal Awardee Performance and Integrity Information System (FAPIIS). President Obama issued a memorandum calling for the creation of a “Do Not Pay List,” a database network designed to prevent agencies from disbursing contracts and grants to recipients that have been suspended or debarred, owe unpaid taxes or are otherwise ineligible to receive federal funds. (Click HERE for article)
Former Army Employee Sentenced to Two Years
BIRMINGHAM—U.S. District Judge R. David Proctor today sentenced a former government contracting official to two years in prison for giving preferential treatment to defense sub-contractors who gave him money, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Patrick Maley.
Judge Proctor also ordered DOUGLAS HARRY ENNIS, 50, of Athens, to serve two years’ supervised release after completing his prison term and to pay $75,000 in restitution. He ordered ENNIS to report to prison Sept. 8.
ENNIS was employed as the deputy director of the Joint Center for Technology Integration (JCTI) located at the United States Army Space and Missile Defense Command at Redstone Arsenal in Huntsville from 1987 to 2008. The Space and Missile Defense Command is responsible for the Army’s research, development and acquisition of systems that may be utilized for defense against ballistic missiles. (Click HERE for Article)
US Businessman Falls To His Death In Jordanian Capital; Authorities Say No Sign Of Foul Play
May 13, 2010 – (AP) AMMAN, Jordan (AP) – The president of a South Carolina-based defense firm fell to his death from the second floor of a deserted building in the Jordanian capital, security officials said Thursday, three days after his body was found. Police have ruled out foul play.
John Zinn, 33, president and chief executive officer of Defense Venture Group, was in Amman, Jordan, for a military exhibition when he died Tuesday “after suffering an accident while on a business trip,” his company said. (Click HERE for article)
Chinese man guilty of Cal military smuggling
The Associated Press – May 12, 2010 – SAN DIEGO—A Chinese man has been convicted of trying to smuggle restricted U.S. military equipment to his native Macau.
A federal jury in San Diego convicted Chi Tong Kuok Tuesday of conspiracy, money laundering, smuggling and attempting to export defense articles without a license. (Click HERE for article)
