ARMORGROUP SCANDAL
EXPOSING FRAUD, WASTE AND ABUSE IN WAR ZONES
Investigative Techniques Mayuri SaxenaSummer 2011
Setting the Scene War on Terror Afghanistan: According to CNN,
228 Deaths of American and Coalition troops in 2007 alone
In 2007, Department of State (DoS) contracts ArmorGroup North America (AGNA) -subsidiary of ArmorGroup International (UK Based) - to protect US Embassy in Kabul
Wackenhut
Investigative Techniques Informants - Whistleblowers
- Peter Martino - James Sauer
- John Gorman - James Gordon
- Terry Pearson - et al. (written accounts)
- Project on Government Oversight (Danielle Brian)
Photographs/Video Evidence
Commission on Wartime Contracting (CWC)Commissioners: - Christopher Shays - Michael Thibault- Clark Ervin - Grant Green- Robert Henke - Katherine Schinasi - Charles Tiefer - Dov Zakheim
“Lord of the Flies”
Nudity, drunken behavior Hazing activities Use of Gov’t Vehicles to transport Alcohol Abuse of Locals Brothel visits – against Trafficking in Victims
Protection Act Substandard vehicles High turnover of staff – 90% turnover within
6 months
Poor living conditions for guards Understaffed, Empty posts Reduced Wages 14 hour days, Strikes Use of non-English speaking Gurkha
guards (Nepalese) to maximize profit Guards without clearances or with prior
records of criminal activity Purchasing of counterfeit goods from
Logistics Manager’s wife Mission Snack Pack
It Takes Two…
State Department equally liable by letting conduct continue without effective action
After issuing Cure Notice highlighting 14 non-compliance issues, and a Show Cure, threatening termination because of guard shortage (POGO), DoS still renews in 2009 contract despite of 2 years of complaints
Senate Committee on Homeland Security & Governmental Affairs
InvestigationSub Committee on Contract Oversight Hearing –
June 2009
Chairwoman - Senator Claire McCaskill Testimonies from DoS, William Moser – Deputy
Assistant Secretary for Logistics Management, and Wackenhut, Samuel Brinkley- VP of Homeland and International Security Services
Systematic pattern of empty posts
Commission on Wartime Contracting Independent, Bipartisan 8 Member Commission to study compliance
issues in war time contracts, specifically in Iraq and Afghanistan
Mandated by Congress Authorized to hold hearings and forward
violations to Attorney General September 2009 – Commission Hearing -
Testimonies from DoS (Amb. Patrick Kennedy), POGO (Danielle Brian), Whistleblower (Terry Pearson), Wackenhut (Samuel Brinkley), et al.
Questions in Bidding Process
Should the Government award security contracts to the lowest bidder for war zones?
- ArmorGroup underbid to win the contract
- Contractor could be grade ‘A’ and little more expensive but because second contractor with grade ‘C’ is cheaper, DoS required to hire second because they
both passed minimum standards
Should Contractors be allowed to provide Security services in war zones at all? Private-Military co-management option?
-Blackwater Incident
-ArmorGroup Scandal
-Low morale
-Profit > Security culture
-Effect on Local population
Commission Members
Copyright © 2011 Commission on Wartime Contracting
Department of State
Copyright © 2011 Commission on Wartime Contracting
POGO & Whistleblower
Copyright © 2011 Commission on Wartime Contracting
Wackenhut
Copyright © 2011 Commission on Wartime Contracting
Aftermath AGNA settles with Whistleblowers for unlawful
termination 14 security guards and Logistics Manager fired for
misconduct Replacement of AGNA management staff DoS prohibits Alcohol consumption – “guns and
alcohol don’t mix” (CWC) 2010 - AGNA’s contract terminated by DoS July 2011 – AGNA pays $7.5 M settlement (CBS) Final Commission Report – Expected July 2011
What’s Next for State? DoS to contract 5,405 projects ($15B) for DoD
transfer in Iraq; Diplomatic Security to hire extra 200 personnel to oversee contractors (CWC)
June 2011 Commission on Wartime Contracting Hearing -Recommendation IG to examine DoS, DoD, and USAID
“It is a long road; it is a marathon. I mean, I think we have already crested heartbreak hill, and we have only so far to go. The time remains is short. Anything can go wrong. And I am sure that something will go wrong.” – Amb. Patrick Kennedy, June 2011 CWC Hearing
Thank You
Q&A
Top Related