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The practice of outsourcing defense operations in Iraq and Afghanistan includes another wrinkle, the House Oversight Committee reported Thursday. While the pertinent government agencies have set rates with a single carrier, the Pentagon has allowed the contractors to negotiate their own insurance deals, causing massive markups that taxpayers inherit. (Associated Press)

Following the recent resignation of two staffers of Sen. John McCain’s (R-AZ) campaign team due to their ties to lobbying for a dictatorship, Republican consultant Craig Shirley has been asked to leave the campaign now after Politico found Shirley working for a ‘527’ group in opposition to Democratic presidential candidates. McCain hired Shirley’s firm, Shirley & Bannister Associates, for $22,000 earlier this year to drum up Republican support. Shirley has received over $155,000 since 2007 from Stop Her Now, the ‘527’, for public relations work. (Politico)

The Bush administration cut ties with Iraq war-pusher Ahmed Chalabi this week … again. He was removed from his post in the Iraqi government for his connections to Iranian officials. But is he really gone for good? (Newsweek)

An internal e-mail dated March 20 from a Veterans Affairs Dept. employee states,”Given that we are having more and more compensation seeking veterans, I’d like to suggest that we refrain from giving a diagnosis of PTSD straight out. Consider a diagnosis of Adjustment Disorder, R/O PTSD.” VA Sec. James Peake calls the e-mail “inappropriate” and said the employee has apologized. (Associated Press)

Sen. Hillary Clinton’s campaign has accepted $4,600 from Melvyn Weiss who is under investigation for bribing plaintiffs in lawsuits involved with his New York law firm, netting them millions in fees. Weiss donated the money in June 2007, and formally pleaded guilty to the kickback charges this April. (Harper’s)

John Rogers, now a top Barack Obama-funder and head of Ariel Capital, received help from then-State Senator Obama to get a larger role in the Illinois state pension fund programs in 2001.(ABC News)

A dirt subcontractor and a former Army Corps of Engineers consultant have been indicted for allegedly sharing confidential bid information for a levee project in New Orleans. In return for the bid, subcontractor Durwanda Elizabeth Morgan Heinrich promised to give the Corps workers 25 cents for every cubic yard of dirt, sand or gravel used on the levees near Lake Cataouatche. (Associated Press)

Former New York Governor Eliot Spitzer has announced he will return all Spitzer 2010 campaign contributions from supporters. Donors have until June 15 to request the refund. (New York Post)

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