Most readers are familiar with the Blackwater Security company, mainly because it’s the biggest mercenary security force in Iraq. Blackwater got an unwanted boost in name recognition in 2004, after it sent four of its men into the horrific Fallujah ambush driving an unarmored car. The image of the men’s charred corpses hanging from a local bridge is now an icon of the early days of the U.S. occupation.
The company’s reputation has been further tarnished by its taking $100 million more from the State Department than Foggy Bottom can justify. Oh — and for clearing over $30 million more in taxpayer monies to “protect” FEMA rebuilding operations in New Orleans.
So how did the controversial company get its start? The old-fashioned way, a new book reports: by finagling a secret “no-bid” contract from a close friend in the CIA.
According to Robert Young Pelton, author of the forthcoming book, “Licensed to Kill: Hired Guns in the War on Terror,” Blackwater’s first contract was a secret, no-bid $5 million deal with the CIA, with apparent assistance from the agency’s #3 man, who was a family friend of Blackwater’s founder. Pelton reports:
Buzzy Krongard had been appointed to the position of executive director of the CIA in March 2001. He had quite a few years of experience as advisor to the [CIA Director], but further back in his career he had been an investment banker, and it was in that capacity that he had first become acquainted with [Blackwater founder] Erik [Prince] and the Prince family fortune. . . .
After Prince called seeking opportunities for his new business venture, Blackwater obtained a $5.4-million six-month contract that specified that it was for an “urgent and compelling” necessity. “Urgent and compelling” contracts eliminate all the competitive bidding requirements, so the contract went straight to Blackwater. . . .
Prince’s first contract was not renewed after the initial six months. The official reason given was that Blackwater [who had no security personnel at the time the contract was signed] had never managed to stay fully staffed up. . . though rumors have circulated throughout the security industry that the CIA had discovered a conflict of interest relating to Buzzy Krongard.
If any of that sounds eerily familiar, it’s because the plot’s been recycled. Kyle “Dusty” Foggo, a figure in the Duke Cunningham scandal, held the CIA executive director post after Krongard. As was rumored about Buzzy, Foggo is said to have steered “black” contracts to his pal, Brent Wilkes. (Foggo’s since had his house raided by the Feds.)
Pelton adds an amusing coda to the story: After winning the CIA contract, the young multimillionaire went to Iraq to work for two weeks as a security guard. He enjoyed it so much, he returned to the States and applied to join the CIA. He didn’t pass his first polygraph, Pelton says — he got only “inconclusive” results — and the agency found him to lack “certain hard skills.”
So he never got to be an official CIA operative. Instead, he’s made millions running his own private paramilitary on behalf of the CIA and others. Funny world.
