AEY May Still Have Government Contracts

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June 24, 2008 1:49 p.m.

Does arms dealer AEY, Inc., still have some U.S. defense contracts?

Even though it’s been on a U.S. State Department Arms Trafficking Watchlist for three years?

Even though it’s been under federal investigation for several months?

Even though its president was arrested last week on federal charges related to arms exports?

Even though military officials were testifying about the company this morning on Capital Hill?

Maybe so.

At the House oversight committee hearing this morning, Rep. Stephen Lynch (D-MA) asked military contracting officials:

“I hear and I read that the contracts have been canceled, terminated. Now I was in Iraq at the Taji weapons depot a few weeks ago and I asked a commanding general there about the AEY contract. He said ‘yeah, they’re shipping into us.’ So myself and Mr. Platts from Pennsylvania actually asked the general to give us some detail and went around and started opening up some crates. They were all AEY contracts, it looks like they’re still performing in this contract, and that doesn’t jive with the testimony and documents I have before me. So can you tell me, is AEY still performing on some contracts in Iraq?”

Jeffrey Parsons, Executive Director of the Army Contracting Command responded: “Sir, I am not aware, and I will have to get back to you on whether they are still performing…”

“That’s not good enough,” Lynch said.

Late Update: Here’s the video of Lynch’s query.

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