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KBR Secret Indemnity Agreement Signed By Army Chief Tainted In Enron Scandal

Army Secretary Thomas E. White signed an agreement giving legal indemnity to KBR in 2003. (AFP PHOTO by Luke Frazza)

Ryan J. Reilly – (Huffington Post) – Washington – January 24, 2013 – The Army official who signed a secret agreement that military contractor KBR claims should burden taxpayers with the bill for the company’s negligent poisoning of U.S. soldiers in Iraq resigned from the military in 2003 after a tenure marked by questions about his ties to Enron Corp.

Thomas E. White, named secretary of the Army in 2001, signed an indemnity agreement protecting KBR, the military’s largest contractor, from legal liability on March 19, 2003. KBR had asked for the agreement as part of its contract to rebuild Iraq oilfields destroyed in the U.S. invasion. White resigned a month later, on April 23, under fire for his previous role as a senior Enron executive and after clashing with former Defense Secretary Donald Rumsfeld over his advocacy for a multi-billion dollar artillery system.

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Army drops suspension of contractor in criminal probe

The Army reversed the suspension Nov. 15, allowing Camille Chidiac to bid for new federal contracts, including an extension of the propaganda contract in January.

Photo Leonie Industries’ Website

Tom Vanden Brook – (USA Today) – WASHINGTON — December 30, 2012 – The Army has lifted its suspension of the owner of its top propaganda contractor in Afghanistan, despite the Pentagon’s ongoing criminal investigation against him for late tax payments, treatment of his Afghan employees and an online smear campaign he launched against USA TODAY.

The Army had suspended Camille Chidiac, co-owner of Leonie Industries, in May after he admitted to setting up disparaging social media and web sites against two journalists from the newspaper. At the time, Defense Secretary Leon Panetta ordered “appropriate action” taken against Chidiac, according Pentagon press secretary George Little, who called his actions “intolerable.”

The Army reversed the suspension Nov. 15, allowing Chidiac to bid for new federal contracts, including an extension of the propaganda contract in January. The Army, in a statement from spokesman Matthew Bourke, decided that Chidiac should be reinstated because the Army concluded that he conducted the smear campaign on his own time without Leonie’s resources. Chidiac put his ownership stake in a trust in an agreement reached with the Army. That prompted the Army to lift its suspension of Chidiac, according to Bourke.

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Pentagon Fraud – “This has got to stop”

Photo: Office of Senator Bernie Sanders (I-VT)

The Senate has approved several amendments to the National Defense Authorization Act (S. 3254), which will bring greater transparency and accountability to federal contracting. The amendments, which OMB Watch endorsed, would:

  • Strengthen whistleblower protections for federal contractors and grantees, which ensures that employees of contractors and grantees cannot be fired or punished for reporting misconduct, modeled after the protections pioneered in the American Recovery and Reinvestment Act of 2009 – sponsored by Sen. Claire McCaskill (D-MO)
  • Require the Defense Department to publish its “revolving door” database of senior department officials who seek employment with defense contractors – sponsored by Sens. Bernie Sanders (I-VT) and Sheldon Whitehouse (D-RI)
  • Require the Defense Department to conduct an annual study on defense contracting fraud, including an assessment of its business with contractors previously penalized for fraud against the government and recommendations for reform – sponsored by Sens. Bernie Sanders (I-VT) and Joe Manchin (D-WV)

~ Senate Passes Amendments to Shed Light on Contractor Misbehavior

The Senate on Friday agreed to make the Pentagon compile annual reports on contracting fraud. The provision by Sen. Bernie Sanders was added to a Department of Defense authorization bill. Another Sanders amendment added to the bill today would make public a list of senior military officials who leave the government and land on the payrolls of defense contractors. “This country has a $16 trillion national debt. It is unacceptable that the Department of Defense continues to lose vast sums of taxpayer money because of fraud perpetrated by major defense contractors. This has got to stop,” Sanders said.

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Star Creeps: Petraeus & the Price of the Top-Heavy Pentagon

Ben Freeman – (POGO) – November 21, 2012 – In addition to extramarital affairs and “flirtatious e-mails,” the General Petraeus sex scandal highlighted another of the Pentagon’s dirty little secrets – generals live like billionaires, and taxpayers are footing the bill.

As the Washington Post reported on Saturday, these perks “befitting a billionaire,” include, “palatial homes, drivers, security guards and aides to carry their bags, press their uniforms and track their schedules in 10-minute increments. Their food is prepared by gourmet chefs. If they want music with their dinner parties, their staff can summon a string quartet or a choir.”

Lavish perks bestowed to generals increase with higher ranks, as Raymond Dubois, former DoD director of Administration and Management from 2002 to 2005, told Air Force Times. “A four-star has an airplane. A three-star often doesn’t…Can a three-star get an airplane when he needs it? Not always. Does a four-star get an airplane when he needs it? Always. Many times he’ll already have a G5 sitting on the runway, gassed up. There are the kinds of costs that are fairly significant when you add them all up,” according to Dubois.

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Petraeus and Allen’s next stop; working for a defense contractor?


Despite the warnings, a worrisomely large number of senior officers have been investigated and even fired for poor judgment, malfeasance and sexual improprieties or sexual violence — and that is just in the last year. ~ Thom Shanker, New York Times

Another top general ensnared in Petraeus scandal

Jay Bookman – (Atlanta Journal Constitution) – November 13, 2012 – I guess if you create a culture in which generals are treated as rock stars, they eventually begin to act like, well, rock stars.

Complete with groupies.

As The Washington Post reports:

ABOARD A U.S. MILITARY AIRCRAFT — The FBI probe into the sex scandal that led to the resignation of CIA director David Petraeus has expanded to ensnare Gen. John R. Allen, the commander of U.S. and NATO troops in Afghanistan, the Pentagon announced early Tuesday.

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