» 2010 » August Ms Sparky

The LTC Rocky Baragona Act (Part II)

Posted on: August 30th, 2010 at 9:18 pm — by Pam Baragona

LTC Rocky Baragona, age 42, was killed on 19 May 2003 when his vehicle collided with a tractor trailer driven by a foreign national working for KGL Transportation Company. Baragona died at the scene. (photo courtesy of Baragona Family)

This is Part II of The Rocky Baragona Act continued from The LTC Rocky Baragona Act (Part 1)

Foreign Contracting and Human Trafficking

Working to uncover the truth behind Rocky’s death, we learned that KGL truck drivers often complained of being trafficked; forced to deliver goods, against their will, to US troops in Iraq. Some had been kidnapped, others arrested for smuggling on the black market. A former KGL employee spoke of insurance fraud and falsification of documents in order to win Army contracts; however, fear has kept him silent. Through our own investigating we learned that KGL had been banned in India for recruiting scams. These scams included bringing in untrained drivers to drive trucks on a promise that the driving would be in country, only to find out that they would be driving into Iraqi war zones. With no passport, no money, and the threat of breach of contract, these drivers were forced to drive into Iraq with little to no experience. The US Army looked the other way when a contractor like KGL used questionable hiring practices. There was simply no oversight. I was appalled by the apathy of our military to do nothing about it.

Allowing foreign contractors to perform contracts in violation of the Fars and International Law to support a war fought for democracy was everything my brother was against. It was clear however, forced labor in defense contracting is an acceptable way of doing business and we were not going to get any support.

Getting In The Ring

Undeterred with the “behind the scenes” of foreign contracting, Rocky’s Justice moved us back to the Hill to use diplomatic measures through Senator DeWine, the Kuwait Ambassador and the Prime Minister…The answer- KGL is untouchable.

Them were some fighting words!!

So we jumped in the ring and hit them in the jaw with a wrongful death suit in the U.S. Northern Georgia Courts. (Read the rest of the story here…)

Oregon National Guard wins round 2 against KBR

Posted on: August 30th, 2010 at 7:21 pm — by Ms Sparky

Oregon Guard suit against KBR goes forward on hexavalent chromium exposure
Published: Monday, August 30, 2010, 7:30 PM
Julie Sullivan, The Oregonian Julie Sullivan, The Oregonian

A federal judge ruled Monday that a lawsuit by Oregon Army National Guard veterans against war contractor Kellogg, Brown & Root can proceed.

The decision makes the federal court in Portland the apex of a legal battle that stretches from Oregon to West Virginia, and from Indiana to Texas, over who is responsible for exposing American soldiers to a known cancer-causing chemical early in the Iraq war.

Already, the Oregon case has opened a window into the government’s unprecedented use of private companies in Iraq and the lucrative contracts that have remained secret until now.

Beginning in May 2003, hundreds of U.S. and British troops guarded KBR workers as they worked to restore Iraqi oil flows. At a decrepit Qarmat Ali water treatment plant, piles of a toxic orange-yellow powder stained the soil, water and walls.

The powder was a rust-fighter, sodium dichormate, which contains hexavalent chromium. Exposure to 40 micrograms of hexavalent chromium per cubic meter — about the size of a grain of salt in about a cubic yard — has shown a high increase in lung, stomach, brain, renal, bladder and bone cancers.

In 2009, 26 Oregon Guard veterans sued KBR, claiming its managers downplayed or dismissed the presence of the chemical.

U.S. District Magistrate Paul Papak denied KBR’s second motion to dismiss the suit. His fact-finding refutes three of KBR’s long-time assertions. He found:

KBR brought additional sodium dichromate to Qarmat Ali in June 2003, stored and worked with it. KBR has consistently claimed the chemical was left by Iraqis after Saddam Hussein’s overthrow.
KBR knew of the sodium dichromate before most of the soldiers ever arrived, warning a subcontractor — but not the U.S. military or soldiers — that areas of the water plant were contaminated. The Oregon Guard weren’t notified of the chemical until August 2003, two months after they had guarded employees at the plant.
KBR was contractually obligated to provide an environmental assessment at Qarmat Ali and report hazards. KBR says the army was responsible for the assessment.

David Sugerman, the Portland consumer attorney representing the veterans, said, “We are very pleased.”

KBR spokewoman Heather Browne said in an email, “We are disappointed with the ruling and we are in the process of reviewing the decision.”

Troops from four states and Britain claim they suffer health problems as a result of the exposure. At least two soldiers who were exposed to the chemical have died of cancer.

Earlier this summer, KBR attorneys moved to dismiss the Oregon case for lack of jurisdiction. They argued that the contractor was “merely executing the will of the United State.” They also claimed that KBR was acting as a combatant during wartime, and should receive the same legal protection the military.

But in a 29-page opinion, Judge Papak found that KBR’s work restoring Iraqi oil was a foreign policy goal rather than a combatant activity.

“The defendents operations were more akin to restoring the battlefield to productive use after the battle has ended than to aiding warriors to swing the sword,” Papak wrote, citing another case law in denying KBR’s claim.

Details of the 2003 Restore Iraqi Oil contract have already raised congressional concern. Earl Blumenhauer, D-Ore., has written the Secretary of the Army demanding details of the agreement because American taxpayers — and not KBR — could pay if the war contractor is found to have harmed Oregon veterans. (click HERE for the original article)

Here’s a another great article on this subject by the legendary David Isenberg. Click HERE

Posted in CHEMICAL AND OTHER EXPOSURES, GOV. CONTRACTORS, LAWSUITS, Lawsuits Against KBR, Qarmat Ali Lawsuits, RIO-KBR, Sodium Dichromate @ Qarmat Ali. Tags: David Isenberg*, David Sugarman, Hexavalent Chromium, Judge Paul Papak, Julie Sullivan, Lawsuits Against KBR, Oregon National Guard, Qarmat Ali, Rep. Earl Blumenauer*. No Comments »

Contractors resist US disclosure effort

Posted on: August 30th, 2010 at 2:56 am — by Forseti

Database lists fraud and shoddy work

Bryan Bender, Globe Staff - August 30, 2010 – WASHINGTON — Defense companies and other major industries are hoping to block disclosure of their own fraudulent or substandard performance in federal contracts, despite a mandate this year by Congress that such potentially embarrassing information be released to the public.

Sensitive to concerns raised by the companies, the White House has delayed enacting the little-known disclosure provision while it studies the issue, officials said.

The controversy highlights the extent to which efforts to make the government more transparent often garner bipartisan support but then stall in the face of powerful interests seeking to limit public disclosure.

The White House, in a statement, acknowledged that “there will be legal and practical issues’’ that have to be addressed before the new law can be implemented.

“But we intend to do that as quickly as possible, in keeping with the administration’s commitment to increasing transparency in government contracting,’’ said Meg Reilly, a spokeswoman for the White House Office of Management and Budget.

At issue is a database that is currently kept secret, called the Federal Awardee Performance and Integrity Information System. Companies are required to fill the database with information about their failures on federal contracts, including civil, criminal, and administrative findings against them.

The database was established in 2008 for the private use of government officials who oversee contracts, but was not intended to be made public.

Contractors complain that disclosing all that information could lead to the unfair use of damaging information by watchdog groups, the media, and their rivals.

But Senator Bernard Sanders of Vermont, an independent who managed this summer to win a disclosure provision in a war spending bill that was signed by President Obama, said the public has a right to know when taxpayer dollars are improperly used or criminally misspent.

“We hand out over $500 billion a year to federal contractors, many of which have well-established histories of systemic illegal, fraudulent, and incompetent behavior,’’ Sanders said in a statement. “We cannot let these corporations continue to rip off American taxpayers. I strongly expect that this new public awareness will go a long way toward putting an end to handing out taxpayer-financed contracts to corporations with a history of fraud.’’

(Read the rest of the story here…)

Posted in GOV. CONTRACTORS, Politics, Reports & Investigations, Senate & House Committee Hearings. Tags: FAPIIS, Professional Services Council, Project on Government Oversight, Senator Bernard Sanders*. 1 Comment »

DoD awards Agility $25M contract extension after suspension

Posted on: August 30th, 2010 at 1:00 am — by Ms Sparky

The USG is clearly Agility's cash and they appear to be milking it for all its worth.

First of all I find it interesting this award was posted on a Saturday. Was the DoD/DLA hoping no one would notice??

Here is the official FBO (FedBizOps.com) notice of Agility’s 6-month contract extension for Defense Distribution Depot Kuwait, Southwest Asia (DDKS). Although it clearly states the extension is for the sole purpose of transitioning to the new awardee (award scheduled for 31AUG), it still amazes me and others familiar with this situation, that nearly 11 months after their suspension Agility still has this contract. The extension value is estimated at $25M. Jean Howds a regular MsSparky.com reader who’s close to this issue says, “I think it’s suspicious and down right wrong the USG has moved so slowly to extricate themselves from Agility’s grasp!” My opinion and that of others is: the USG was banking on their strong arm tactics forcing Agility to pay a fine and/or settle the indictments. This would have allowed them to keep their contract. Evidently the USG was too optimistic and underestimated the arrogance of Tarek Sultan.

Posted in Agility/PWC/GCC, GOV. CONTRACTORS, Indictments, Convictions & Arrests. Tags: Agility, Agility/PWC/GCC, DDKS, Defense Logistics Agency*, DLA*, Tarek Sultan. 193 Comments »

The Struggle to Police Foreign Subcontractors in Iraq and Afghanistan

Posted on: August 29th, 2010 at 9:14 am — by Forseti

Billions at Stake, but U.S. Investigators Stymied by Murky Rules, Enforcement Obstacles

By Nick Schwellenbach – August 29, 2010
To win hearts and minds in Afghanistan and Iraq, military experts want U.S. companies to contract with local firms for a variety of tasks like trucking, feeding troops, and providing security. The U.S. government’s “Afghan First” and “Iraqi First” initiatives increasingly seek to rely on local contractors, often through subcontracts, in part to stimulate their local economies.

But a host of investigations underscore the perils in the murky world of subcontracting with foreign firms, and the difficulties in making sure taxpayer dollars are well spent. Among the current and recent probes by the Pentagon, congressional panels, and federal investigators:

Up to $300 million in subcontracts in Iraq and Kuwait were allegedly tainted by a Saudi-based subcontractor employee’s kickback scheme;
Subcontracted security forces in Afghanistan are suspected of bribing both Taliban and Afghan government officials;
U.S. money for a trash collection program in Iraq, administered by a bewildering array of subcontractors, has allegedly ended up in the pockets of insurgents; and

A former contractor employee alleged that Middle Eastern subcontractors, trying to sway the award of more subcontracts, were sneaking prostitutes into Baghdad’s Green Zone by abusing their security access cards.
Subcontracting is among the most challenging parts of the U.S. government’s widespread outsourcing of war-related tasks. It works like this: A government agency — most likely the Defense Department, State Department, or U.S. Agency for International Development — will award work to a “prime” contractor. That prime contractor, usually a large American company like Kellogg, Brown and Root (KBR) or DynCorp International, will often subcontract some or even a majority of its work to other companies, including foreign-owned firms. Those subcontractors sometimes then turn around and subcontract part of the work, and so on.

(Read the rest of the story here…)

Rogue jurors, indictments, plea deals etc.. – the news

Posted on: August 29th, 2010 at 5:25 am — by Forseti

Employee of Federal Contractor Charged with Disclosing National Defense Information to National News Reporter
August 27, 2010 – WASHINGTON – A federal grand jury in the District of Columbia has returned an indictment charging Stephen Jin-Woo Kim with unlawfully disclosing national defense information to a reporter for a national news organization and making false statements to the FBI.

The indictment, which was unsealed today, was announced by David S. Kris, Assistant Attorney General for the National Security Division; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Shawn Henry, Assistant Director in Charge of the FBI Washington Field Office.

Kim, age 43, was an employee of a federal contractor who was on detail to the State Department at the time of the alleged disclosure. Kim made his initial appearance today in court in the District of Columbia. If convicted, he faces up to 10 years in prison for the unlawful disclosure of national defense information and up to five years in prison for the making of false statements.

According to the indictment, in June 2009, Kim knowingly and willfully disclosed information contained in an intelligence report classified Top Secret/Sensitive Compartmented Information (TS/SCI) to a reporter for a national news organization who was not entitled to receive it. The classified information related to the national defense, specifically, intelligence sources and methods and intelligence concerning the military capabilities and preparedness of a particular foreign nation. (Click HERE for article)

The Brooks trial: When jurors go rogue
Harnesslink -26-Aug-2010 – Andrew Cohen – It is by far the least surprising legal development of the year that there would be trouble inside the jury room in the corporate fraud trial of David H. Brooks, the titular head of the Perfect World Enterprises and Bulletproof Enterprises harness racing empire.

The white-collar case with the red-light tinge has been a circus, a freak show, and a mess since its inception. And I’m quite sure I’m not the only one who sees grand irony in the fact that Brooks’ jury might get hung up because one or more of its members may be cheating on the oath of service.

Brooks’ zany trial (involving two defendants, actually, allegations of hundreds of millions of dollars of fraud, and decades in prison as a potential sentence) was far too long. And long trials typically beget long deliberations. But it’s been three weeks or so and jurors should have been back with a verdict by now. Last week, the federal judge/zookeeper who presides over U.S. v. Brooks received a note from a juror who wrote that some colleague “sit there and read testimony that doesn’t relate to the charges we are discussing.” U.S. District Judge Joanna Seybert gently reminded the panel that they all needed to stay focused upon deliberations.

(Read the rest of the story here…)

Posted in Commission on Wartime Contracting (CWC), GOV. CONTRACTORS, Indictments, Convictions & Arrests, Politics, Reports & Investigations. Tags: AEY Inc., Commission on Wartime Contracting, David H. Brooks, Derish Wolff, DHB Industries, Efraim Diveroli, FOB Shank, Louis Berger Group, Point Blank Solutions, Stephen Jin-Woo Kim, Stevan Nathan Ringo. No Comments »

KBR warns employees about media tactics

Posted on: August 27th, 2010 at 11:24 am — by Ms Sparky

“Bad reporter! Bad!!” It’s very amusing how KBR sends out these “Media Advisories” preparing employees for the “impending attack of reporters”. Those crafty underhanded tricksters! Out to extract KBR’s sin and secrets from the innocent unsuspecting KBR employee! KBR makes these reporters sound like a seductive band of traveling Gypsies.

I also find it humorous how KBR crafts their memos to appear as if KBR HQ/Corporate has the best interest of the employee at heart. Stating they can not be forced to talked to the media. Then in the next breath stating it is against company policy to talk to the media without prior approval. So even if a KBR employee desperately wanted to talk to the media they are intimidated into silence. I would like to report that this is a corporate tactic unique to KBR but it’s not. Most corporations who have something to hide employ this method of attempting to control the media. Thank goodness it doesn’t seem to be working! Keep that information coming!

Below is a memo that was just sent out today Friday 8/27/2010 @ 9:22 AM

TO:                LOGCAP IV CTP employees at JBB
FROM:         Floyd Driver, CTP Task Order Manager
SUBJECT:   Media Advisory – Public Affairs Media Day

Today, the 103rd ESC’s Public Affairs Office (PAO) is hosting a Media Day. Media representatives will be escorted by PAO officers to CTP work locations located on Joint Base Balad.

KBR’s public relations policy requires that all employees refer “all written or oral inquiries from individuals external to the KBR corporate Public Relations department.” CTP’s regional contact for Public Affairs inquiries is the LOGCAP IV Project Management Office (PMO). If you are approached by the media, politely and firmly respond: “I am not the appropriate media contact for KBR. Please contact LOGCAP IV Operations Managers, Sarah UiMhuirgheasa at 713.753-4264 or Cam White at 713-970-9690.” You may also provide the requestor with our email addresses.

CTP employees are only allowed to give media interviews after securing advanced approval from corporate communications via LOGCAP IV PMO. Notify your supervisor immediately if your are approached with requests for information or comments and/or photographed or videotaped during a Media Day visit to your work area. If a media representative tells you that a question is “off the record,” “on background,” or “for research” the information will likely still be used. The same guidance applies even if the media is accompanied by a military PAO.

If approached by a media representative, remember the following points –

Find out who you’re talking to before engaging in a conversation. Most media won’t identify themselves until you ask. Don’t be afraid to start off the conversation with “Who are you?” Check his/her credentials. Report their name and media affiliation to your supervisor.

If the individual is not escorted by PAO and there is not a standard or routine need for access to your work area or service facility, then s/he should be escorted off the work site by KBR.

Always remember an employee cannot be forced into talking to the media.

Reference corporate policy (P-GL-KBR-COM-0801, dated April 5, 2007), “All types of Media Contact are coordinated through the Corporate Communications Department, the CEO of the Company, or Company Executives. Other employees refer inquiries from media companies, organizations or representatives to Corporate Communications and obtain approval of Director of Corporate Communications before responding to Media Contact on behalf of the Company. Media Contact includes such events as interviews, press events, media alerts, media tours, and roundtable discussions.”

Floyd Driver
LOGCAP IV
CTP Task Order Manager
KBR, Inc.
APO AE 09391
Office: 281-669-XXXX