State Department Cancels Iraq Contract With Blackwater

Hurray! Blackwater is out.
By Robert O'Harrow, Jr.

The State Department will not renew Blackwater Worldwide's contract for securities services in Iraq, according to media reports today, ending one of the most controversial government deals in recent memory.
Blackwater and its affiliates have received about $1.3 billion this decade -- most of it through State Department contracts. The firm's revenue increased even as the company faced allegations that some employees murdered Iraqi civilians and overcharged the government.
The company rose extraordinarily fast, in part because of its reputation as a tough, no-nonsense operation that moved quickly, trained uncounted military and law enforcement officials and did what was necessary to protect clients, even though it was often accused of being heavy handed.
In a hearing about the firm that same year, Rep. Elijah E. Cummings gave voice to critics' concerns when he questioned whether Blackwater has "created a shadow military of mercenary forces that are not accountable to the United States government or to anyone else."
Some critics attribute Blackwater's success to the political connections of owner Erik Prince, a big contributor to conservative and Christian causes. As the Post reported, in 2007, Prince "was a White House intern under President George H.W. Bush. His political donations over the past two decades total almost $263,000 to Pat Buchanan, Oliver North, Rep. Ron Paul (R-Tex.) and former senator Rick Santorum, a Pennsylvania Republican, among others. His sister, Betsy DeVos, is former chairwoman of the Republican party in Michigan."
State Department's latest move raises a host of questions: Why State kept ramping up spending on the contract, even in the face of serious questions about the company? Why they're bailing out now? Who will replace the firm's hired guns in Iraq? Can the government itself provide the same level of security in Iraq? Government Inc. suspects not, at least for now. Also, does this change have any impact on the firm's other lucrative deals with the feds?

Let's hope so.