Showing posts with label War Profiteering. Show all posts
Showing posts with label War Profiteering. Show all posts

Sunday, September 30, 2007

War Profiteering Is Treason; Crimes against the American Taxpayer

Criminal and Civil law suits should be filed!

Ending War for Profit

by Katrina Vanden Heuvel

Based on the work of Nobel Prize-winning economist Joseph E. Stiglitz and Harvard public finance lecturer Linda J. Bilmes, the American Friends Service Committee (AFSC) recently determined that the Iraq war costs $720 million per day, $500,000 per minute - enough to provide homes for nearly 6,500 families, or health care for 423,529 children in just one day.

AFSC is using ten, seven-foot banners displayed at legislative and congressional offices around the country to illustrate the costs of the war and the human needs that could be addressed with those same resources. The National Priorities Project (NPP) also has a new report on the Bush Administration’s latest $50 billion spending request, which would bring the total cost of the Iraq War to $617 billion.

In addition to these staggering costs, we’re also learning more about how this war has served as a boondoggle for defense contractors, with war profit-making gone out of control. The Nation’s Jeremy Scahill was way ahead of the curve in reporting on Blackwater’s role in the most radically privatized, outsourced war in history. (Last week, Jeremy was asked to testify before the Democratic Policy Committee about his work and reporting–which may well lead to some good reforms. )

The Institute for Policy Studies and United for a Fair Economy has done important research in this area. Here are some of the more disturbing facts: CEOs of defense contractors are paid more in four days than a general earns in a year; since September 11, CEOs at top defense contractors have received annual pay gains between 200 percent to 688 percent; between 2002 and 2006, the seven highest paid defense contractor CEOs made nearly $500 million - General Dyanmics’ CEO, Nicholas Chabraja, alone was paid $97.9 million, averaging $19.6 million per year. (David Lesar of Halliburton pocketed a mere $16 million per year during that period, and Lockheed Martin’s Robert Stevens has cashed in on stock options to earn over $19 million so far this year.) Many of the CEOs profitted from stock options as their companies’ stock prices soared with the increased revenues from the Defense Department.

Sarah Anderson, Director of the Global Economy Program at the Institute for Policy Studies, and Charlie Cray, Director of the Center for Corporate Policy, suggest that defense contractors’ CEO pay be addressed directly by conditioning contracts on reasonable pay practices. For example, requiring that the CEO not make more than 25 times the lowest paid worker within the company or, alternatively, not more than 10 times the pay of a military general. This could be combined with other eligibility criteria such as no companies that relocated offshore, have a history of significant violations, or do business with states that sponsor terrorism. (Also, the disclosure rules for defense contractors should be broadened. Right now, privately held corporations are not required to make public their executive compensation. Thus, major players like Bechtel and Blackwater can keep their pay figures secret.) But Anderson and Cray believe that CEO pay is a symptom of a much broader problem - one that will only be addressed if we recognize that the entire defense and war contracting system is out of control.

“Companies like Halliburton/KBR and Blackwater are only the tip of the iceberg,” Anderson says. “We now have contractors conducting intelligence background checks, processing Freedom of Information Act Requests, writing the President’s daily brief, helping run prisons like Abu Ghraib, etc.”

After years of almost zero oversight, these broader questions are finally being examined - at least to a degree. Certainly Representative Henry Waxman is doing his part as Chair of the House Committee on Government Oversight and Reform, looking at Iraq reconstruction corruption. And Senators Claire McCaskill and Jim Webb introduced legislation to establish a Commission on Wartime Contracting - a Truman-like Commission - to investigate waste and fraud in contracting. (Anderson and Cray suggest that the mandate for the Commission be broadened to look at the corporatization of war, intelligence, and other inherently governmental functions.) Other common-sense pieces of legislation include: the “Transparency and Accountability in Security Contracting Act”, introduced by Rep. David Price, to ensure that private security contractors like Blackwater are accountable; and two 2006 contract reform bills - Rep. Waxman’s “Clean Contracting Act” and Sen. Byron Dorgan’s “Honest Leadership in Government Contracting Act” - both bills would limit no-bid contracts, provide criminal sanctions for fraud, and address conflicts-of-interest, revolving door and other issues.

It is a systemic problem for a democracy to link corporate profits and war-making, and it has metastasized as this war has been increasingly privatized (there are now more contractors than soldiers in Iraq). Good small-d democrats need to keep watch on current legislation, hold our representatives accountable and and demand that they take bolder action to bring this system to an end.

Katrina Vanden Heuvel is editor of The Nation
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© 2007 The Nation



(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. I.U. has no affiliation whatsoever with the originator of this article nor is I.U endorsed or sponsored by the originator.)


The Nazis, Fascists and Communists were political parties before they became enemies of liberty and mass murderers.

Monday, August 13, 2007

God's Own Huge Briber

I can remember my grandfather telling me that if a business man feels the need to tell you he is a Christian or the is the outline of a fish appears on his business cards, run for the hills.

He was right!

These people are corrupt liars of the worst kind.

Accused major remains a hometown hero

Web Posted: 08/12/2007 12:48 AM CDT
Guillermo Contreras
San Antonio Express-News


CASTOR, La. — Within the pages of the 1984 yearbook at Castor High School, an administrator penciled in the word "Army" over a senior photo, depicting the career path of a student revered in this tiny town for what he had accomplished.

For John L. Cockerham, the student donning the turquoise cap and gown in that photo, it was a struggle to make it that far.

Cockerham, known around here as John L. or John Lee, was the third youngest of 18 children. He grew up in a home with no running water and lived hand to mouth. He had speech and learning impediments.

With his aspirations of becoming a lawyer dashed because of a lack of money, he joined the Army straight out of high school. Later when he rose to the rank of major, this rural town of fewer than 300 people, an hour's drive southeast of Shreveport, was so proud it held a parade for him in 2004.

Today, Castor is reeling.

A contracting officer for the Army now stationed at Fort Sam Houston, Cockerham, 41, is at the center of what officials say is the largest bribery scandal to come out of Iraq. He's accused of taking $9.6 million in kickbacks — and expecting $5.4 million more — in exchange for diverting lucrative military contracts to certain companies in Kuwait and Iraq, mostly while he was deployed to Kuwait during 2004 and 2005.

Cockerham and his wife, Melissa, are jailed in San Antonio on federal charges related to bribery and money laundering.

They are pending indictment along with one of his sisters, Carolyn Blake of Sunnyvale, near Dallas, who's charged with conspiring with the Cockerhams to defraud the United States and to launder money. She is out on bond, and her case was transferred to San Antonio last week.

To many Castor residents, the charges against John Cockerham are sharply contrary to the person they know — kind, generous, religiously devout and devoted to family.

They still talk about the quiet, humble boy who grew into an impressive man and did much to help the black community and others here, where options for advancement are few.

Mention of his name is received with lament at the town's heart, The General Store of Castor, where pickled quail eggs are sold under the same roof as plastic irrigation tubing by the foot. Here, Lance Harper, whose parents own the store, said: "Everyone is pulling for him."

"He's worked hard to get where he is," said Darryl Clark, pastor of Upper Zion Baptist Church in Shreveport, who graduated with Cockerham. "Given the conditions he grew up in, he could have quit, but he didn't. He made a conscious effort to succeed."

"It's just a shocker to anybody in Castor," added another longtime friend and schoolmate, Chris Guin of Castor. "It's a nightmare."

A simple country boy?

While most of Cockerham's family declined comment, two siblings said his relatives stand by him. One depicted Cockerham as a fall guy in the scheme.

Cockerham's friends and those who knew him only in passing also are leery of the government's allegations against him.

"My brother is no criminal," said Charles Cockerham, 58. "He's not even criminal minded. I promise you that's not John. He's a simple country boy who might have got caught up with some big wheels."

Asked if she believes Cockerham took bribes, his sister Mabel Cockerham said: "Why would he? My brother had all the things of value that he needed. He had life, family, friends, the joy of the Lord — the things that matter the most.

"His joy is in sitting around laughing, talking, reminiscing, eating and making other people laugh, never about, 'I wish I had this or I wish I had that,'" she said.

The government's portrayal of Cockerham diverges so widely it almost describes another person.

During his bail hearing in San Antonio on July 31, agents painted him as a calculating type who pretended to cooperate in their investigation after they found ledgers that documented the alleged bribes at his Fort Sam Houston home in December, then turned around to warn associates or witnesses about the case.

In a second search at his home July 23, the day the Cockerhams were arrested, federal agents found letters and documents they say encouraged the associates — whom agents did not name — to destroy or hide evidence, not to disclose certain information and to stall the probe. The documents, agents testified, even described "cover stories" that were to be given to agents — like claiming the money was donations for a private ministry in Texas.

Melissa Cockerham, 40, and Blake, 44, are accused of meeting contractors' representatives in Kuwait to accept millions of dollars in kickbacks on John Cockerham's behalf and putting the cash in safe deposit boxes in Kuwait and Dubai so it could be parked later in offshore accounts in the Caribbean.

The Justice Department will not divulge details beyond the arrests and charges. It refused to identify the companies or people suspected of paying the bribes, saying the case remains under investigation.

Cockerham's lawyer, Jimmy Parks Jr., said much of the matters in question appear to come at a period when Cockerham — unprepared to handle highly complex contracting — was pressed into service because the Army had a shortage of contracting officers in Kuwait and Iraq.

"He didn't get the training he needed until he came back," Parks said.

To hear agents tell their version in court, it would seem Cockerham would be rolling in money. That is not so evident.

No one interviewed for this report said they saw Cockerham flash signs of sudden wealth. One friend said he was careful with his money and tried to live within his means.

He drove a 1994 Isuzu pickup, or "clunker," disputed what he believed was a $10 overcharge on a car rental, and even complained that his wife bought a minivan he thought they couldn't afford, according to K.C., an Army buddy from San Antonio who served with Cockerham at Fort Polk, La., in 1997.

"If he had some money, he sure had some incredible restraint," said K.C., who refused to be identified by his full name for fear of retribution. "He was a miser. I saw him contest a $10 charge once. I was like, 'Let it go.' That's the way he was. If he had any money, I didn't see it."

Cockerham owns property in Louisiana — the land he grew up on near Castor is in his name and worth $3,500 — and a plot of land he bought by paying the $187 taxes due at a tax sale in Plain Dealing, 30 miles north of Shreveport. That property is valued at $13,800, and contains the run-down remnants of a building supply company that closed 20 years ago. Hackberry trees, tall grass and ivy overrun the property, which is in central Plain Dealing, but in an area that shows signs of blight.

Property records show Cockerham bought the land in 2003, a year before any of the criminal activity is alleged to have taken place. Mabel Cockerham said buying land at property tax sales is a common practice and disputed its relevance. But U.S. Magistrate Judge Pamela Mathy, who denied the Cockerhams bail on July 31, cited it in her written order, saying John Cockerham's failure to disclose his ownership during the court's pretrial background investigation seemed to lend weight to agents' contention that Cockerham was deceptive.

Beyond that, there is a career Army man who chose to live in military housing, put in long hours at work and supported a wife and three young children — a 2-year-old daughter and 7-year-old twin boys — on a $5,000 monthly salary.

K.C. said he knows Cockerham as a kind man and mentor who influenced him to become more active in his Christian faith. K.C. described Melissa Cockerham as subservient, always doting on the kids.

"He used to be 280 pounds and 6-foot-2," K.C. said of John Cockerham. "You see him and think, 'This guy must be an animal.' But he was just the sweetest, sweetest soul. Talk about somebody you wanted to be like if you wanted to be a good person, that was Cockerham."

Humble upbringing

Cockerham was born John Lee Cockerham Jr. in Shreveport in January 1966. He was the 15th of 18 children (two died in car accidents and a third died from pneumonia as an infant), born to John Lee Cockerham Sr. and Clara Cockerham. Cockerham Sr. died 10 years ago, and Clara passed away about four years ago, Charles Cockerham said.

Charles Cockerham, who had to pause to count his siblings, said his father had other children with other women.

"My daddy got around. He was a stepper," he said.

Cockerham Sr. worked at a sawmill in Castor, which has been closed for years. Clara, who had 13 siblings of her own, cared for the children, but also took up odd jobs to help make ends meet.

"For the longest time, he only made $40 a week," Charles Cockerham said of his father. "There were many times we didn't know where our next meal would come from. At one time, we ate grits and oatmeal so much, we thought there ain't nothing else."

They lived in a four-room house Cockerham Sr. built on 80 acres of pine-studded woodlands the family has owned for generations. They call the main part of the land "The Hill" because the house sits on a sandy hill that has slowly eroded over time.

As soon as they were old enough, the kids were put to work. They hauled water in buckets from a nearby stream to drink and to heat up on their wood-burning stove to bathe.

Today, the house has an old, worn mobile home addition and has signs of heavy wear and tear, although Charles Cockerham lives in it and tries to maintain it. A pavilion the family built a few yards from the house about 10 years ago has served as a place for family reunions, Charles Cockerham said.

He said John Cockerham has planned to return to the property one day.

A flagpole in the center of "The Hill" flies a tattered U.S. flag that Charles Cockerham said John Cockerham put up about two years ago.

"He loves his country," Charles Cockerham said.

When he was younger, John Cockerham worked part time at the sawmill with his father. He studied hard, was in the Future Homemakers of America, was a candidate for most handsome boy at school and played power forward on the basketball team. The work, school and away games wore him down, said his friend Guin.

"He used to sleep in class because he'd get up at 3 a.m. to go work in a dairy farm pumping cows," Guin said. "He was doing it to support his family. And he was still playing ball."

The extracurricular activities did not appear to interfere with his studies.

"He was no 'A' student, but he exerted the best effort possible," said Olivia Gray, one of his eighth-grade teachers who helped him overcome his stammering and other hurdles. "I don't think he had a learning disability, but some students are quick to catch on. John was a little slow and would need extra help. He would voluntarily, deliberately stay after school to get that help. He tried so hard he made you want to help him because he showed concern for his learning."

By his freshman year, he was on the honor roll and made it each year thereafter.

With few options and no money for college, Cockerham joined the Army after graduating from high school.

He was stationed at Fort Knox, Ky. There, he met Melissa Jean Jordan, who was born in November 1966 in Elizabethtown, Ky. They married on the post May 18, 1986.

After being discharged from the Army in 1989, John Cockerham enlisted in the Louisiana National Guard and used his GI Bill to go to Northeast Louisiana University in Monroe, La., where he graduated in 1993.

That year, he also earned his commission through officer candidate school in the Army and was stationed in Monroe and Fort Polk before he transferred to military housing at Fort Sam Houston in late 2003. Shortly after the move, he was deployed to Kuwait.

He got his master's degree in international contracting upon returning to Fort Sam in 2006 at Webster University, which has a branch at Fort Sam, according to a summary of his Army file obtained through a Freedom of Information Act request.

Since January 2006, he has been assigned to the U.S. Army Contracting Activity — The Americas. His detachment is the 410th Contracting Support Brigade at Fort Sam Houston, and he was on special assignment to Guantanamo Bay from June 2006 to December 2006.

Jesus, then family

Throughout his life, God played a vital role, friends and relatives said.

"His first priority is Jesus Christ and spreading his word," said Mabel Cockerham. "After Jesus Christ, family is his heart."

Cockerham was baptized at age 7 at his family's church, New Friendship Baptist, about a mile from his childhood home, said Verba Egans, the church's secretary, closest neighbor to the home and a friend of the family.

The day before his arrest, John Cockerham was in Castor, baptizing his twin boys, Justin and Jordan, at New Friendship, Egans said.

In Texas, the Cockerhams attended Resurrection Baptist Church in Schertz, where 80 to 85 percent of the 3,500-strong congregation has some ties to the military. There, John Cockerham and his family were active in religious activities. Family deacon Ray Wynn and other Resurrection members described them as nice people.

"Sometimes we'd have military appreciation day," Wynn said. "He'd come in his uniform spit and polished. That showed me he was proud of his uniform."

He was so devout that he had the Army take his donation to New Friendship from his military paycheck while he was away, Egans said.

Guin, who runs a charitable organization that promotes morality and helps out the needy, said Cockerham donated $1,000 to it in 2005.

"I fully believe that even if he did it, he would do it to help somebody out," Guin said. "I don't believe he is greedy. If he did it, he should be punished, and when he gets out, he should give God his glory. But if somebody is railroading him, I hope they go down hard."


(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. I.U. has no affiliation whatsoever with the originator of this article nor is I.U endorsed or sponsored by the originator.)


The Nazis, Fascists and Communists were political parties before they became enemies of liberty and mass murderers.

Friday, April 20, 2007

Is Treason, During War-time, Still A Hanging Offense

WASHINGTON: U.S. lawmakers on Thursday railed against senior U.S. Army officials and defense contractor KBR Inc. over persistent allegations of fraud and contract abuse on a multibillion-dollar deal to provide food and shelter to American troops in Iraq.

"Profiteering during wartime is inexcusable," said Democratic Sen. Byron Dorgan, testifying at a Senate Armed Services Committee hearing. "This is the most significant waste, fraud and abuse we have ever seen in this country."

Lawmakers and the U.S. inspector general have accused KBR, formerly a division of Halliburton Co., which was once headed by U.S. Vice President Dick Cheney, of abusing federal rules in record-keeping on the current contract. Nearly $2 billion (€1.47 billion) in overpricing on the contract has been identified by Pentagon auditors and government investigators, lawmakers said.

Houston-based KBR is currently the U.S. Army's sole contractor for providing food and shelter to the military in Iraq, Afghanistan and Kuwait under the Logistics Civil Augmentation Program, or Logcap. The Pentagon has awarded more than $20 billion (€14.7 billion) over the last five years for the services contract.

Sen. Carl Levin, D-Mich., chairman of the committee, cited several examples of contract abuse, including KBR allegedly billing the federal government for millions of meals that were never delivered, overstating labor costs by 51 percent, or $30 million (€22.06 million), and purchasing between $40 million (€29.41 million) and $113 million (€83.08 million).

The U.S. Army Audit Agency, the department's internal auditor, has conducted 15 separate audits on Logcap services in Iraq since 2004, Auditor General Patrick Fitzgerald testified at the hearing.

The audits found systemic problems with the government's ability to accurately estimate costs, review contractor orders and define tasks. Fitzgerald blamed most problems on the large volume of work under intense deadlines.

Assistant Secretary of the Army Claude Bolton said steps have been taken to rectify the problems, including withholding performance fees to KBR and competing some tasks that were originally included the contract.

"Improvements have been made, but it's still not perfect," said Bolton.

Democratic senators repeatedly questioned the Army's decision to keep the sole-source pact with KBR even as multiple audits the last three years suggested evidence of widespread fraud and abuse.

Bolton said the volatile nature of the war in Iraq and the unanticipated need for additional resources prevented the Army from launching a new competition until now.

"We could use more people ... reviewing the contract on a daily basis," said Bolton. "(But) each person I send over there is a target. As I look at this, we do the best job we can under difficult conditions."

Late last year, the Army announced plans to award up to three 10-year contracts worth up to $50 billion (€36.76 billion) each, as well as a single five-year oversight pact worth up to $225 million (€165.43 million). Bolton said the new pacts would help to increase competition and improve oversight and accountability on Logcap.

No KBR officials testified Thursday at the hearing and calls to the company were not immediately returned.

Halliburton recently completed a stock-swap program that separated it from KBR, leaving two independent companies.

Shares of Halliburton Co. were down 37 cents to $31.99 in afternoon trading while shares of KBR fell 7 cents to $21.16, both on the New York Stock Exchange.



(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. I.U. has no affiliation whatsoever with the originator of this article nor is I.U endorsed or sponsored by the originator.)


The Nazis, Fascists and Communists were political parties before they became enemies of liberty and mass murderers.

Tuesday, January 23, 2007

Cheshire Cheney: Menace On The Lamb


January 21, 2007
by the Long Island, New York Newsday

by Les Payne

Trade the grin of the Cheshire cat for a scowl and you have Vice President Dick Cheney. OK, the cat in "Alice in Wonderland" never shot a friend. Still, it is the scowl, all crooked and evil, that makes up the Cheney menace. He is arguably the most powerful vice president ever, filling the vacuum his boss leaves in the Oval Office.

During President George W. Bush's six years in office so far, Cheney has been as famous as the Cheshire cat for vanishing and suddenly reappearing. He was back out on the limb last week promoting Bush's escalation of the Iraq war. The Scowl was all over Fox TV news, rendering the clenched visage of Brit Hume downright charming by comparison.

The Cheney menace also haunted the courtroom where the jury was being picked last week for the trial of the vice president's former chief of staff. Lewis "Scooter" Libby is facing felony charges of obstruction of justice and perjury in the grand jury probe of how Valerie Plame was exposed as a CIA agent, possibly as a punitive act. Defense attorneys reportedly struggled with the daunting task of eliminating from the Libby jury those with "strongly negative feelings" about Cheney.

On the first day two such potential jurors, civic-minded we must assume, couldn't conceal their distaste for Cheney. One reportedly lasted 15 seconds, another weighed his civic duty for 15 minutes before confessing "low regard" for the sitting vice president. Cheney is scheduled as a star witness in Libby's leak case, which is on the periphery of the administration's pursuit of the Iraq war.
Cheney is very much at the heart of the war and deserves as much blame as anyone. His involvement also bears, in the opinion of more than a few, the hint of profiteering, if not conflict of interest. He has amassed great wealth and power in the all too common - and questionable - practice of shuttling between top corporate jobs and posts at the government trough. He is the former chief executive of the giant Halliburton energy and government services conglomerate that has landed multi-billion-dollar U.S. war contracts without competitive bidding.

The vice president may well have met all federal ethical requirements for severing his corporate ties before taking office. The imprint of his association with Halliburton, however, remains as strong as the Cheshire grin when the cat has disappeared. It's a fair bet that if the republic frees itself of Cheney, he is likely to benefit from Halliburton's gorging during his tenure in office.

As for the recent promotion of the troop buildup, Halliburton stands to profit handsomely from the 21,500 additional troops to be dispatched to the Iraq war zone, where its subsidiaries provide housing and food. Early on, Halliburton was accused of fleecing the government by feeding the troops spoiled food and by overcharging for the number fed. There also have been allegations some subsidiaries overcharged for fuel, transportation and other services and wasted millions due to inadequate management of personnel and war materiel.
After almost four years of such management, the new Democrat-controlled Congress may well discover that the waste by Halliburton and others is incalculable. This finding should not, of course, deter the legislative branch from re-establishing its oversight and fiduciary responsibilities. During the roar of the U.S. war machine in Iraq, the Congress, until now, has been as quiet as church mice, and just as impotent.

After 3 1/2 years of watching Bush-Cheney mismanage the war, the American people finally ran out of patience in the November elections. And so it appears particularly unseemly for Cheney to push so aggressively - and wrongheadedly - for almost dictatorial powers for himself and the president to continue budget-busting spending and escalation in Iraq.

While acknowledging Congress' attempts to adhere to the popular will and redirect the war, Bush chillingly declared, "But I've made my decision. And we're going forward" with the buildup. "You cannot run a war by committee," said Cheney. He obviously intends to increase the flow of money to Iraq.

Perhaps it's time for Cheney to vanish like the Cheshire cat, beginning with the tip of the tail and ending with the scowl, which will likely remain long after the rest of him has gone.

© 2007 Newsday


The Nazis, Fascists and Communists were political parties before they became mass murderers.