President Obama, Why Did You Pay Blackwater $70 Million in February? [View All]

[Orwellian_Ghost]

President Obama, Why Did You Pay Blackwater $70 Million in February?

By Jeremy Scahill, AlterNet. Posted March 17, 2009.

Obama may keep the company on the government payroll months after its Iraq contract expires. Not bad for a firm supposedly going down in flames.


For those already outraged at the AIG bonus scandal, here is a fact that should add more fuel to the fire: The Obama administration has paid the mercenary firm formerly known as Blackwater nearly $70 million to operate in Iraq and, according to The Washington Times, may keep the company on the payroll months past the official expiration of its Iraq contract in May. I reviewed Blackwater's recent transactions with the Obama State Department and discovered a $45 million payment to Blackwater on February 4, 2009 for "protective services-Iraq." It is described as a "funding action only." Here is the interesting part: The estimated "Ultimate Completion Date" is 5/07/2011.

The Washington Times (as described below) reported on a $22 million payment to Blackwater on February 2. Combined with the $45 million payment I discovered, that's nearly $67 million in 72 hours. Not bad for a company supposedly going down in flames.

With the U.S. economy in shambles and millions of Americans struggling to make ends meet and keep their homes, Obama and Secretary of State Hillary Clinton need to explain to U.S. taxpayers how they justify these mega-payments to a scandal-plagued mercenary company. (At the very least, someone should ask Robert Gibbs about it).

It has been widely reported that the Bush administration's preferred mercenary company, which recently renamed itself Xe, will soon be leaving Iraq. That news came early this year after the State Department, under immense public pressure, announced it would not renew the company's lucrative deal to act as the private paramilitary force for senior U.S. occupation officials. The Iraqi government has said it wants the company to leave Iraq and says it has revoked the company's operating license. The Obama administration continues to use Blackwater in Afghanistan and the company has extensive domestic training contracts with the military and law enforcement agencies inside the borders of the U.S.

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http://www.alternet.org/waroniraq/132171/president_obama,_why_did_you_pay_blackwater_$70_million_in_february/?cID=1163014#c1163014

Earlier this week, The Washington Post reported that some of Blackwater's armed operatives may simply be rehired by two other US mercenary firms that are expected to take over Blackwater's work in Iraq under the Obama administration...

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/16/AR2009031602720.html?hpid=topnews">U.S. Moves to Replace Contractors in Iraq