WSJ Criticizes Contracting Out

My my what a difference a decade makes. The Wall Street Journal today published this. Yes the Wall Street Journal, the voice of Rupert Murdock, the voice of corporate capitalism in America sounding like Mother Jones magazine. The irony is that contracting out government services has created a welfare state for private companies, and an increase in the size of government. The exact opposite of what the neo-copns claimed it would do.

Government by Contractor Is a Disgrace
Many jobs are best left to federal workers.
Back in 1984, the conservative industrialist J. Peter Grace was telling whoever would listen why government was such a wasteful institution.
One reason, which he spelled out in a book chapter on privatization, was that "government-run enterprises lack the driving forces of marketplace competition, which promote tight, efficient operations. This bears repetition," he wrote, "because it is such a profound and important truth."
And repetition is what this truth got. Grace trumpeted it in the recommendations of his famous Grace Commission, set up by President Ronald Reagan to scrutinize government operations looking for ways to save money. It was repeated by leading figures of both political parties, repeated by everyone who understood the godlike omniscience of markets, repeated until its veracity was beyond question. Turn government operations over to the private sector and you get innovation, efficiency, flexibility.
What bears repetition today, however, is the tragic irony of it all. To think that our contractor welfare binge was once rationalized as part of an efficiency crusade. To think that it was supposed to make government smaller.
As the George W. Bush presidency grinds to its close, we can say with some finality that the opposite is closer to the truth. The MBA president came to Washington determined to enshrine the truths of "market-based" government. He gave federal agencies grades that were determined, in part, on how abjectly the outfits abased themselves before the doctrine of "competitive sourcing." And, as the world knows, he puffed federal spending to unprecedented levels without increasing the number of people directly employed by the government.
Instead the expansion went, largely, to private contractors, whose employees by 2005 outnumbered traditional civil servants by four to one, according to estimates by Paul Light of New York University. Consider that in just one category of the federal budget -- spending on intelligence -- apparently 70% now goes to private contractors, according to investigative reporter Tim Shorrock, author of "Spies for Hire: The Secret World of Intelligence Outsourcing."
Today contractors work alongside government employees all across Washington, often for much better pay. There are seminars you can attend where you will learn how to game the contracting system, reduce your competition, and maximize your haul from good ol' open-handed Uncle Sam. ("Why not become an insider and share in this huge pot of gold?" asks an email ad for one that I got yesterday.) There are even, as Danielle Brian of the Project on Government Oversight, a nonpartisan watchdog group in Washington, D.C., told me, "contractor employees -- lots of them -- whose sole responsibility is to dream up things the government needs to buy from them. The pathetic part is that often the government listens -- kind of like a kid watching a cereal commercial."
Some federal contracting, surely, is unobjectionable stuff. But over the past few years it has become almost impossible to open a newspaper and not read of some well-connected and obscenely compensated contractor foisting a colossal botch on the taxpayer. Contractors bungling the occupation of Iraq; contractors spinning the revolving door at the Department of Homeland Security; contractors reveling publicly in their good fortune after Hurricane Katrina.
At its grandest, government by contractor gives us episodes like the Coast Guard's Deepwater program, in which contractors were hired not only to build a new fleet for that service, but also to manage the entire construction process. One of the reasons for this inflated role, according to the New York Times, was the contractors' standing armies of lobbyists, who could persuade Congress to part with more money than the Coast Guard could ever get on its own. Then, with the billions secured, came the inevitable final chapter in 2006, with the contractors delivering radios that were not waterproof and ships that were not seaworthy.
Government by contractor also makes government less accountable to the public. Recall, for example, the insolent response of Erik Prince, CEO of Blackwater, when asked about his company's profits during his celebrated 2007 encounter with the House Oversight Committee: "We're a private company," quoth he, "and there's a key word there -- private."
So you and I don't get to know. We don't get to know about Blackwater's profits, we don't get to know about the effects all this has had on the traditional federal workforce, and we don't really get to know about what goes on elsewhere in the vast private industries to which we have entrusted the people's business.

SEE:
The Failure of Privatization
Another Privatization Failure
Moral Turpitude Is Spelled Blackwater
IRAQ- THIS WAR IS ABOUT PRIVATIZATION
The Neo Liberal Canadian State


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Last One Out Turn Off The Lights

Nortel has been shedding jobs for over a decade as it lost money every year since the dot com bubble burst. But of course the guy at the top responsible for Nortel's losses keeps his job. Whle advocating layoffs and concessions as the solution to Nortels problems. Unfortunately that has been tried for a decade and it ain't worked.

Nortel has now lost more than $4.5 billion since Chief Executive Officer Mike Zafirovski took over at the end of 2005, pushing him to cut 18 percent of the workforce. Today he said he plans further reorganization aimed at saving as much as $400 million next year, freezing travel, ending salary increases and getting rid of at least four top executives.

The more than 32,000 people who work for shrunken telecom giant Nortel, its investors who have seen share value plunge from $20 to pennies in a year, and analysts following the firm awoke Monday expecting a financial tsunami of an announcement.What they got as Nortel announced a $3 billion red ink bath for the third quarter was a series of announcements that might slosh water out of a nearly full bathtub.Did a reorganization plan accompanied by some job trims and the booting of some top executives save the S.S. Nortel, or did management just reshuffle deckchairs on what many analysts are growing to believe is a business Titanic?

Deregulation and the optical boom
In 1983, due to deregulation, Bell Canada Enterprises (later shortened to BCE) was formed as the parent company to Bell Canada and Northern Telecom. Bell-Northern Research was jointly owned 50-50 by Bell Canada and Northern Telecom. The combined three companies were referred to as the tricorporate.[5][6][7]
As Nortel, the streamlined identity it adopted for its 100-year anniversary in 1995, the company set out to dominate the burgeoning global market for public and private networks.
In 1998, with the acquisition of Bay Networks, the company's name was changed to Nortel Networks to emphasize its ability to provide complete solutions for multiprotocol, multiservice, global networking over the Internet and other communications networks. As a consequence of the stock transaction used to purchase Bay Networks, BCE ceased to be the majority shareholder of Nortel. In 2000, BCE spun-out Nortel, distributing its holdings of Nortel to its shareholders. Bell-Northern Research was gradually absorbed into Nortel, as it first acquired a majority share in BNR, and eventually acquired the entire company.

After the Internet bubble

Nortel Networks Corp (NYSE: NT) stock price (source: ZenoBank.com)
In the late 1990s, stock market speculators, hoping that Nortel would reap increasingly lucrative profits from the sale of fibre optic network gear, began pushing up the price of the company's shares to unheard-of levels despite the company's repeated failure to turn a profit. Under the leadership of CEO John Roth, sales of optical equipment had been robust in the late 1990s, but the market was soon saturated. When the speculative telecom bubble of the late 1990s reached its pinnacle, Nortel was to become one of the most spectacular casualties.
At its height, Nortel accounted for more than a third of the total valuation of all the companies listed on the Toronto Stock Exchange (TSX). Nortel's market capitalization fell from C$398 billion in September 2000 to less than $5 billion in August 2002. Nortel's stock price plunged from C$124 to $0.47. When Nortel's stock crashed, it took with it a wide swath of Canadian investors and pension funds, and left 60,000 Nortel employees unemployed.
CEO John Roth retired under controversy to be succeeded by former CFO Frank Dunn. Despite some initial perceived success in turning the company around, he was fired for cause in 2004 after being accused of financial mismanagement. Dunn and other former Nortel officers have been accused of engaging in accounting fraud by the SEC (for more information, refer to "Accounting scandal").[8]
Retired United States Admiral Bill Owens was hired as the CEO to replace Dunn. In late 2004, Nortel Networks returned to using the Nortel name for branding purposes only (the official company name was not changed).
Nortel acquired PEC Solutions in June, 2005, renaming it Nortel Government Solutions Incorporated or NGS. The wholly-owned subsidiary provides information technology and telecommunications services to a variety of government agencies and departments.[9]
On August 17, 2005, LG Electronics and Nortel signed an agreement to form a joint venture to offer telecom and networking solutions in the wireline, optical, wireless and enterprise areas for South Korean and global customers. Nortel owns 50 percent plus one share in the joint venture.

Here are some key dates in the company's history:
May 1, 2000 - BCE Inc (BCE.TO: Quote, Profile, Research, Stock Buzz), Canada's biggest telecommunications group, completes spinoff to shareholders of 35 percent stake in Nortel, worth about C$88.5 billion ($75.6 billion)
Feb. 15, 2001 - Nortel cuts 2001 earnings and sales forecast in half, blaming severe erosion in U.S. economic conditions. The warning triggers a 33 percent drop in its stock and brings class-action lawsuits.
May 29, 2002 - Nortel plans to cut 3,500 jobs and sell more assets as it pares its revenue forecast.
June 4 - Nortel shares collapse to decade-long lows on concerns a new financing will further dilute its stock. Cash-hungry Nortel raises $1.49 billion June 7.
Oct. 23, 2003 - Nortel reports a quarterly profit, but says it will restate results going back to 2000.
March 15, 2004 - Nortel says it will likely restate results for a second time and delay filing its annual report.
April 5 - The U.S. Securities and Exchange Commission launches a formal investigation into Nortel's accounting
June 29 - Nortel exits manufacturing business, sells plants to Flextronics International, transfers 2,500 staff.
Sept. 30 - Nortel cuts almost 10 percent of its staff, 3,250 jobs, and vacates offices worldwide.
Jan. 11, 2005 - Nortel restates its results and says 12 senior executives will repay $8.6 million of bonuses.
Oct. 17 - Motorola's No. 2 executive, Mike Zafirovski, is appointed CEO, promising renewed growth and focus.
Feb. 8, 2006 - Nortel says it will pay $2.47 billion to settle two class-action suits from its accounting scandal.
Feb. 7, 2007 - Nortel slashes 3,900 jobs and shifts 1,000 positions to lower-cost locations such as China and India.

Oct. 15 - Nortel pays $35 million to settle civil charges filed by the SEC related to its accounting scandal.
Feb. 27, 2008 - Nortel says it will cut 2,1000 jobs as it faces persistently slow demand for its products.
Sept. 17, 2008 - Nortel cuts revenue forecast, plans another round of restructuring and the sale of its Metro Ethernet Networks business. It says it may also look for a partner to develop fourth-generation wireless technology.
Nov. 10 - Nortel announces 1,300 layoffs, a freeze on salary increases and a review of its real-estate portfolio after posting a $3.4 billion quarterly loss.

SEE:

Nortels Chickens Roost

NORTEL: Canada's Enron

Nortel Slash & Burn

NORTEL: REDUX

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Not So Green Apple

And what are the chances that Apple will blame China, where their phones are produced, for this? After all China bashing is all the rage in the US of A.

Apple’s iPhone contains hazardous chemicals and materials, according to the results of scientific tests commissioned by Greenpeace and released today. This is the first testing of an Apple product following the commitment by Steve Jobs, Apple CEO, to a ‘Greener Apple’, in May 2007.

An independent scientific laboratory tested 18 internal and external components of the iPhone and confirmed the presence of brominated compounds in half the samples, including in the phone’s antenna, in which they (1) made up 10 per cent of the total weight of the flexible circuit board. A mixture of toxic phthalate esters (2) was found to make up 1.5 per cent of the plastic (PVC) coating of the headphone cables.

The insight into the components of the iPhone is presented in the Greenpeace report, ‘Missed call: the iPhone’s hazardous chemicals’ This is the third time that Greenpeace has tested an Apple product since 2006. Similar analyses of a MacBook Pro and an iPod Nano also revealed the presence of brominated flame retardants and PVC in some components.

(1) Bromine: Whether in additive or reactive form, the presence of high proportions by weight of bromine in electronic components is of concern with respect to the disposal or recycling of end-of-life iPhone handsets, as even cross-linked organic-bound bromine can contribute to the formation of toxic chemicals, including persistent and bioaccumulative brominated dioxins and related compounds during thermal destruction or processing.

(2) Phthalates: The European Directive 2005/84/EC prohibits the use of di(2-ethylhexyl) phthalate(DEHP), dibutyl phthalate (DBP) and benzyl butyl phthalate(BBP) in all toys or childcare articles put on the market in Europe (with a limit of 0.1% by weight).

SEE:

PC is 25 years old

Slaves To Ipod

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Mattel In China

The problem is not with China but with the outsourcing by American Corporations who then do not take responsibility for either worker or consumer protection for their products as the Mattel recalls showed this summer.

The fact is production in China is no different than production anywhere else. It is the corporations responsibility to insure safety standards are met both for workers and consumers. Instead cheap production has also meant a lowering of those standards.

In order to avoid responsibility for recalls the corporations, and the ineffectual Consumer Protection Agency in the U.S. would rather blame China.

Twenty years of the ideology of contracting out/outsourcing for profit meant that corporations relied on making record profits from lower standards abroad for quicker and higher profits. Now the chickens come home to roost. And again as typical of corporate bosses they look for others to blame.

Mattel did not meet safety standards for it's products and spent the summer allowing the blame to fall on China.

"China has received a lot of blame for the recalls in the West," said Hari Bapuji, assistant professor at the University of Manitoba in Canada and lead author of the report, "Toy Recalls -- Is China the Problem?"

"They do have problems, there is no doubt. But I think the blame they received was larger than their share of their responsibility for the problem."

This paper analyzes the data on toy recalls over the last 20 years and
finds that the number of recalls and the number of recalls of Chinese-made
toys have witnessed an upward trend. We examine the increase closely and
find that the number of defects attributable to design issues is much higher than those attributable to manufacturing problems. We contextualize these findings in light of the latest recall of toys by Mattel and make two major suggestions: first, ensuring the accountability of toy companies to improve their product designs and second, encouraging the development of global standards to enhance product safety.

Our analysis of toy recalls revealed that an overwhelming majority of the recalls
could have been avoided with better designs. Therefore, it is important to focus efforts on learning from the recalls that occurred in the past and minimize their recurrence. Our analysis also revealed that the presence of excess lead paint is a result of differences in the standards of exporting and importing country. These could be avoided through legislation and education.

Mattel sorry for 'design flaws'

Mattel says it was mainly to blame

Mattel has admitted that most of the toys recalled in recent safety scares had "design flaws" and that Chinese manufacturers were not to blame.

Why Mattel Apologized to China - TIME

BBC NEWS | Business | Chinese province 'may sue Mattel'

China's Guangdong province is likely to join a planned libel suit against the US toy giant Mattel, according to the China Daily.

Mattel recalled more than 21 million Chinese-made toys this summer, but later said that 85% of the recall was due to its own design faults.

Responsible Shopper Profile: Mattel

MONITORING MATTEL IN CHINA

By Stephen Frost and May Wong

Recently the Asia Monitor Resource Center published a report which assessed the way in which Mattel monitors its code of conduct. We called it Monitoring Mattel: Codes of conduct, workers and toys in southern China, and in it we tried to show the limitations inherent in the implementation and monitoring of codes in China (and perhaps elsewhere). We discussed many issues, but here I want to raise three of our major themes.

The first is that a chasm separates what we might call corporate Mattel and production line Mattel. The second theme, arising out of this, is that Chinese workers do not have a voice in the formulation, implementation, or monitoring of Mattel's code of conduct. The final theme is that despite some major steps on Mattel's behalf, there is still some way to go before the code and its monitoring could be called transparent.

Strengthening of Consumer Agency Opposed by Its Boss - New York Times

The top official for consumer product safety has asked Congress in recent days to reject legislation that would strengthen the agency that polices thousands of consumer goods, from toys to tools.

On the eve of an important Senate committee meeting to consider the legislation, Nancy A. Nord, the acting chairman of the Consumer Product Safety Commission, has asked lawmakers in two letters not to approve the bulk of legislation that would increase the agency’s authority, double its budget and sharply increase its dwindling staff.

Ms. Nord opposes provisions that would increase the maximum penalties for safety violations and make it easier for the government to make public reports of faulty products, protect industry whistleblowers and prosecute executives of companies that willfully violate laws.

The measure is an effort to buttress an agency that has been under siege because of a raft of tainted and dangerous products manufactured both domestically and abroad. In the last two months alone, more than 13 million toys have been recalled after tests indicated lead levels of almost 200 times the safety ceiling.

Ms. Nord’s opposition to key elements of the legislation is consistent with the broadly deregulatory approach of the Bush administration. In a variety of areas, from antitrust to trucking and worker safety, officials appointed by President Bush have sought to reduce the role of regulation and government in the marketplace.

Nord clinging to her job as head of commission amid dangerous toy recalls

Nord also told a House Energy and Commerce panel that she did no wrong by accepting three free trips from industry worth thousands of dollars, saying it had been common agency practice with approval from CPSC attorneys.

“This practice, not common by me, is legal ... and was in place for 20 years, long before I came to the commission,” she told lawmakers who questioned her independence.

“Faced with limited enforcement dollars,” Nord said, “I would much rather spend $900 in a laboratory than on airfare and hotel.”

Profits valued over children's safety

By MARIANNE MEANS
SYNDICATED COLUMNIST

WASHINGTON-- It's a national embarrassment.

The Consumer Products Safety Commission is ordinarily not a controversial agency -- it is so small it operates largely in obscurity. But it has suddenly become a public outrage, a symbol of the Bush administration's cavalier attitude toward the public good when it conflicts with big business interests.

We have always known this is President Bush's basic notion of how to govern, but up to now we had seldom been hit smack in the face with it. The acting chairman of the CPSC, Nancy Nord, testified recently on Capitol Hill that the commission opposed congressional efforts to expand the agency's budget and powers in order to get a handle on tainted toys and other products flooding the U.S. from China.

Her indifference to the threat from lead-contaminated toys and other consumer items created a firestorm. It forced the administration to rush forth with an alternative plan that had been languishing for months. That plan would set up a system allowing most industries to police themselves but add more inspectors for companies with particularly dangerous products or bad safety records.

It is, predictably, far more limited in scope and authority than the congressional plan. But it will temporarily serve the administration's purpose of muddying the issue.

The decline of the CPSC is a shame. Congress proposed the agency at the peak of the consumer movement in the late 1960s, when the country was rebelling against the traditional concept of caveat emptor -- let the buyer beware. The public was tired of business getting away with shoddy practices and shoddy goods.

The major champion of the cause, Ralph Nader, was listed in a magazine as one of the nation's 10 "most admired" men and consumerism enjoyed support across political and philosophical lines. But then Nader, full of himself, made a major mistake. He endorsed the 1972 presidential candidacy of George McGovern and dragged his cause to the far left. As a consumer crusader, he was popular; as a potential presidential candidate, he was a disaster.

(And still is -- Democrats loathe him because his pitiful 2000 candidacy got just enough votes to do in Vice President Al Gore in Florida's tight contest. Yet he recently mused that he would like to run for president again next year because he saw no difference between GOP and Democratic principles. The man is an egomaniac.)

Meanwhile, the CPSC continues its drastic fall. Nord and her predecessor, Hal Stratton, have made several trips around the world on junkets financed by the industries they are supposed to be regulating.

Nord rejected the congressional offer of more money and authority. She warned that the bill "would harm product safety and put the American people at greater risk."

Nord's logic seems a little nutty.

The bill would increase the agency's budget from $63 million to $142 million by 2015 and increase its staff by 20 percent. It would raise the cap on penalties for safety violations from $1.8 million to $100 million, ban lead in kids' products and make it illegal to sell recalled goods. It would add whistleblower protections.

But she is used to viewing the world from the one-sided viewpoint of business. She is a lawyer who worked for the U.S. Chamber of Commerce and in private practice for clients such as General Electric and other leading manufacturers and retailers.

Her agency is responsible for overseeing more than 15,000 types of products. But it has only 400 staffers, fewer than half the number when the agency was formally established in 1973. It has only one full-time toy tester.

The CPSC has been without a chair for more than a year. In March, Bush nominated Michael Baroody, a manufacturing industry lobbyist, to become chairman. He withdrew his name two months later rather than reveal his severance agreement with the National Association of Manufacturers.

Democrats are now calling for Nord to resign. She is certainly in an inappropriate job. But Senate Majority Whip Dick Durbin, D-Ill., warned that if she leaves, Bush might just forget to replace her and leave the commission rudderless and helpless. That seems to have been Bush's goal all along. To get real consumer protection, we will have to wait for a Democratic president.

Marianne Means is a Washington, D.C., columnist with Hearst Newspapers. Copyright 2007 Hearst Newspapers.

SEE:

NAFTA Poisioning

Turning Lead into Gold

Made In U.S.A. Food Recall

Criminal Capitalism: Pet Food Scandal

Fish Contamination


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Royalties Pay For Jobs

All those threats about job losses in the oil patch and the bosses protest at the Leg seems to have overlooked a little fact. Job losses in the public sector in particular our hospital sector were caused by the Klein government bailing out Big Oil in the nineties.

As this letter writer to the Calgary Sun pointed out.

JUST ANOTHER INTEREST GROUP

There seems to be a double standard in both media and government attitude regarding regular public service workers and the oil industry. In the '90s, during the Klein "devolution," health-care professionals, teachers, public service workers and their collective bargaining agents protested cutbacks to health-care, education and other public services. They warned of gross shortages and infrastructure deficits in the future (which all came true). They were written off as "special interest groups" by media and government. Now an independent panel indicates the oil and gas industry has not been paying its fair share and the industry gets closed-door meetings with the government and is regarded as a VIP by the media. They come out with a government decision that still has them paying less than their fair share. They still grumble and yet neither the media nor government disregard their threats and grumbling as "just another special interest group."

Larry Connell, RN

The attack on the public sector was the result of low royalties and tax breaks for Big Oil. The neo-con advisers to the Klein government called for cuts to public sector spending, freezes on wages and contracting out to make up for the deficit created by this give away. The deficit was caused by the failure of the government to collect its fair share, even back then, as the auditor general pointed out, of the royalties, even as low as they were; a penny on the dollar.

The cuts to the public sector were ideologically driven, at the time the Klein and Harris governments, indeed in 1995 so did the Federal Liberals, embraced the idea that the private sector can deliver services cheaper and more efficiently then unionized public sector workers.

Well cheaper yes by driving down wages and benefits. Efficiently well no, because they low balled their bids and now the costs are rising. Unionized public sector workers may cost more in wages and benefits, the workers in the private sector, but their costs are controlled by collective bargaining. And the government has controlled public sector wages in Alberta to be below inflation for the past decade. Whereas private sector costs are now skyrocketing.

Today infrastructure costs are higher because the Tired Old Tory government spent the last decade acting like Scrooge when it came to infrastructure expenditures. Instead of spending the annual surpluses they did get, which occurred annually since the pseudo-crisis of 1993, they hoarded the money crying poverty. Now the chickens have come home to roost.

Ralph cut nurses and doctors as well as capping nursing programs in Alberta universities. The cuts over a decade created a crisis we now face in staffing. especially in the hospital sector. The result has been a decline in health care services, with deadly results.

As we have seen investment in public sector jobs have been a boon to the Canadian economy. Costs of having services delivered in house are much lower than contracting out in an overheated economy. So much for the supply side economics of the Fraser Institute and it's pals.

So the next time some oil supply company workers complain that they may lose their jobs tell them to talk to the nurses in this province who left during the nineties to find work elsewhere.



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Contracting Out Harpers War

Canada quietly has expanded the use of contracting out and privatization of military operations for Harpers War. Not only is Tim Horton's a private contractor working at taxpayer expense in Kandahar so is SNC Lavalin.

It is Canada's version of Bechtel and Halliburton. And like them it too has been rocked by scandals.But unlike them it is also a war-profiteer making weapons systems and small arms. It processes depleted uranium for weapons use in Iraq and Afghanistan. And your pension dollars help support them.

As this article points out if you want the real date that Canada will remain in Kandahar till, try 2012.

Since Canadian troops deployed to southern Afghanistan in the spring of 2006, the number of contractors working in support and logistics roles has more than doubled to nearly 200.

The privatized support dates back to Canada's multiple deployments in the former Yugoslavia in the late 1990s. Anticipating more overseas mission in the aftermath of the Sept. 11, 2001, terrorist attacks, the federal government turned to defence-engineering giant SNC Lavalin, which won a five-year, $500-million contract that has renewal options running until 2012.

The federal government has already quietly opted to renew the contract, which has set renewal dates of 2007, 2009 and 2011.

In Afghanistan, for example, SNC Lavalin-PAE was given a five year, $400 million contract by the Canadian Department of Defense to build and maintain Camp Julien and provide laundry, food and other services to Canadian occupation forces there. And to meet the increasing demand for Quebecois bullets, SNC is building another artillery testing range on Cree land in Waswanipi, Quebec. Opposition to the project is rising in Waswanipi because the range will disrupt an important trap-line used by Cree hunters.

We even have our own version of Blackwater happening in Kabul.

Canada's diplomats in Kabul and visiting high-value targets like Prime Minister Stephen Harper are protected by a group of heavily armed gunmen hired by Saladin Security, a British firm with a long history of secretive and clandestine operations.

Department of Foreign Affairs officials in Ottawa are tight-lipped about the deal struck with Saladin, whose gun-toting employees provide perimeter security, operate checkpoints, serve as bodyguards and form a heavily armed rapid-reaction force designed to move quickly to thwart an attempted kidnapping and rescue survivors of suicide attacks or car-bombings in Kabul.

The department won't even confirm that Saladin's most recent contract - which ended in June of 2007 - has been renewed, but observers of the Canadian embassy in Kabul say Saladin employees remain on guard. Some Saladin guards, in baseball caps and paramilitary uniforms, openly patrol the road outside the Canadian diplomatic compound in Kabul.

But details of the extent of Canada's reliance on a private firm for diplomatic protection are even more scant than the now-controversial U.S. deal with Blackwater Security, the American firm whose hired gunmen killed 17 Iraqi civilians last month while protecting a diplomatic convoy.

Saladin Security, Ltd. is a private military company based out of London and headed by industry veteran Maj. David Walker. The company was orginally established as a subsidiary of Keenie Meenie Services, and financed by John Martin Southern of Blackwall Green, Ltd., in 1978 to handle local contracts. As KMS disappeared from the global stage, Saladin began taking on contracts in the Middle East and Sri Lanka.

They provide military training, weapons procurement, logistical support, post-conflict resolutions, commercial property security, and risk analysis.

Saladin trains the Omani troops and runs their airforce which is flown and maintained almost completely by British personnel. RAF bases in Oman were used as launching pads for American flights into Afghanistan. Saladin, along with KMS, aided the CIA and British Intelligence in arming and training the Mujahideen in the war against Soviet imperialism.

Saladin is currently operating in Iraq.

In 1984, KMS was approved by the British government to train the Special Task Force arm of the Sri Lankan military against the Tamil rebels. The STF was widely reported to have been committing atrocities against the Tamil population and by 1987 KMS had moved their two hundred personnel to Latin America. The British press had reported, though the company denied it, that employees for KMS were quitting their jobs because the Sri Lankan troops were out of control.

During the Iran-Contra investigations, KMS was accused of repeatedly carrying out sabotage operations in Nicaragua that included mining the Managua harbor and destroying enemy camps, buildings and pipelines.

On November 22, 1987 the London Observer's Simon de Bruxelles published a three page proposal from KMS to the CIA suggesting sending small teams of instructors into Afghanistan to train rebels in "demolition, sabotage, reconnaissance and para-medicine."

KMS was accompanied by Saladin Security (a subsidiary) and Defence Systems Limited in their training programs in Afghanistan, Saudi Arabia and Oman.

KMS closed down in the early 1990s, and Saladin began operating more internationally.

The BRITISH ASSOCIATION OF PRIVATE SECURITY COMPANIES (BAPSC) works to promote the interests and regulate the activities of UK based firms that provide armed defensive security services in countries outside the UK.

A Fistful of Contractors: The Case for a Pragmatic Assessment of Private Military Companies in Iraq," by David Isenberg
BASIC RESEARCH REPORT 2004.

Speaking of Blackwater they are used for training Canadian forces used in Afghanistan as well as to train the secret JTF-2 special forces, which have seen action in Iraq.

Select Canadian soldiers have been sent to Blackwater U.S.A. in North Carolina for specialized training in bodyguard and shooting skills. Other soldiers have taken counterterrorism evasive-driving courses with the private military company now at the centre of an investigation into the killings of Iraqi civilians and mounting concerns about the aggressive tactics of its workers in the field.

Canadian military police trained by Blackwater operated in Kandahar last year in support of coalition special forces. Members of the Strategic Advisory Team, which operates in Kabul, also underwent counterterrorism driving training, according to a military official.

The Ottawa-based counterterrorism unit, Joint Task Force 2, has also maintained ongoing training links to the company.

Military officials did not have further details on why Blackwater would be hired, but promised to provide those. Later, however, they did not comment on the matter.

Canadian Forces spokesman Lt.-Col. Jamie Robertson said the military does not discuss its special forces training. But he noted that Blackwater and other firms have been contracted to provide services for other units.

And the Afghan security forces used to protect the PRT in Kandahar are hired guns, euphemistically called contractors, mercenaries by any other name. And they are under the control of warlords.

So what is an occupying army, huddled behind the wire, supposed to do? Well, if you are NATO then you go ahead and pay some trustworthy locals to fight for you. That is, you hire mercenaries. Under the headline, "British hire anti-Taliban mercenaries", the Times of London reports on "newly formed tribal police who will be recruited by paying a higher rate than the Taliban."

Canadian forces, too, are getting in on the action. "For five years Col. Toorjan, a turbaned, tough-as-nails, 33-year-old soldier, has been working alongside U.S. and Canadian forces in Afghanistan as a paid mercenary commander," reports Canada's National Post. "Today, his militia force of 60 Afghan fighters guards Camp Nathan Smith, the Canadian provincial reconstruction team site (PRT) in Kandahar, and guides Canadian soldiers on their patrols outside the base." Toorjan and his armed men "wield significant influence in Kandahar's complex security web", making him a treasured ally, though before 9/11 he was "in effect a warlord", said the second-in-command of Canada's Provincial Reconstruction Team.

The use of mercenaries, it should be noted, runs counter to the International Convention on Mercenaries (1989). Canada, however, along with the USA, the UK and many others, is not a signatory to that treaty.

And the contracting out continues even when our vets retire an go looking for a new job.

OTTAWA, ONTARIO--(Marketwire - Oct. 25, 2007) - The Government of Canada today announced new measures to help retiring Canadian Forces Veterans make the successful transition from the military to new civilian careers. The Honourable Greg Thompson, Minister of Veterans Affairs; Laurie Hawn, Parliamentary Secretary to the Minister of National Defence; and Bram Lowsky, General Manager, Right Management, formally launched the national contract for the Job Placement Program.

The value of the contract with Right Management is for up to $18.5 million over the next four years.

Right Management is a subsidiary of Manpower Inc. the temporary placement agency that has benefited from government and corporate downsizing. The Conservatives continue the policy of the Liberals of Reinventing Government by downsizing departments and contracting out. When you contract out you no longer have to worry about staffing costs like benefits, pensions, nor pesky union grievances.

Right Management is a career transition and consulting firm operating in more than 40 countries.

Founded in 1980, Right Management was at the forefront of “inventing” the outplacement industry, and expanded globally to match the footprint of its multi-national clients.

Beginning in 1996, Right Management extended into consulting services to help clients address human resource and organizational consulting needs.

Right Management was acquired by Manpower in January 2004.

Manpower Inc. operates under five brands: Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management.

Job Protection for

Canadian Reservists

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Blackwater On YouTube

I look forward to seeing this on Youtube.

Iraqi investigators have a videotape that shows Blackwater USA guards opened fire against civilians without provocation in an incident last week in which 11 people died, a senior Iraqi official said Saturday. He said the case had been referred to the Iraqi judiciary.

While the U.S. government might want to look at Blackwater instead of Iran for weapons smuggling into Iraq. Oh yes and ask them about the tons of missing weapons that they were supposed to be guarding.

Feds probe whether Blackwater smuggled weapons into Iraq: Federal prosecutors are investigating whether employees of the private security firm Blackwater USA illegally smuggled weapons into Iraq that may have been sold on the black market and ended up in the hands of a U.S.-designated terrorist organization, officials said Friday.

File this under oops we spoke to soon.

Iraq says won't move to expel Blackwater: "If we drive out or expel this company immediately there will be a security vacuum that will demand pulling some troops that work in the field so that we can protect these institutes," spokesman Tahseen al-Sheikhly, speaking through an interpreter, told a news conference.

SEE:

Sounds Familiar

Moral Turpitude Is Spelled Blackwater



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Sounds Familiar

Gee this sounds familiar.....

a preliminary Iraqi report on the shooting involving a US diplomatic motorcade claims Blackwater security guards had not been ambushed, as the company reported, but instead fired at a car when it did not heed a policeman's call to stop, killing a couple and their infant.

Yep reminds me of other deaths in Iraq like that of the Italian Secret Agent,
where innocents are shot in their cars for failing to obey a stop sign.

Wonder if those guys were Blackwater as well. After all it's hard to tell the players without a program.

And with the Rumsfeld Doctrine of integrating private mercenaries and contracted out support services with the regular Armed forces it is even harder to tell.

But the vision that Rumsfeld sort of laid out that day would become known as the Rumsfeld Doctrine, where you use high technology, small footprint forces and an increased and accelerated use of private contractors in fighting the wars.

And the Iraq report on gung ho merc's from Blackwater goes on....

The report, prepared by the interior and defence ministries, was presented to the Iraqi cabinet and, though unverified, seemed to contradict an account offered by Blackwater that the guards were responding to gunfire by militants.

The report said Blackwater helicopters had been involved and 20 Iraqis were killed — a far higher number than had been reported before.

"There was not shooting against the convoy," the Iraqi Government's spokesman, Ali Dabbagh, said. "There was no fire from anyone in the square."

Shoot first ask questions later seems to be Blackwater's motto, which is what got them killed in Fallujah in the first place and set off the American revenge attack on that city.

SEE:

Moral Turpitude Is Spelled Blackwater

Bad News For Bush

U.S. Supplies Iraqi Insurgents With Weapons

Surge Blackout

IRAQ- THIS WAR IS ABOUT PRIVATIZATION


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Moral Turpitude Is Spelled Blackwater

This is what happens when you contract out your war to private armies.

"A state that privatizes most of its functions will inevitably defend itself by employing its own people as mercenaries-with equally profound strategic consequences. " Philip Bobbitt

- Iraq's Interior Ministry canceled the license of controversial American security firm Blackwater USA today after Iraqi officials charged that eight civilians were shot by company bodyguards accompanying a U.S. State Department motorcade the day before in Baghdad.

"It has been revoked," said Brig. Gen. Abdul Kareem Khalaf, a spokesman for the ministry. "They committed a crime. The judicial system will take action."

The decision marks Iraq's boldest step yet to assert itself against foreign security contractors, who arrived in Iraq after the U.S.-led invasion in March 2003. Blackwater has become the symbol of foreign gunmen accused by many Iraqis of speeding through Baghdad's streets and shooting wildly at anyone seen as a threat.

moral turpitude

1. depravity
2. (law) Any base or vile conduct, contrary to accepted morals, that accompanies a crime

turpitude
"depravity, infamy," 1490, from M.Fr. turpitude (1417), from L. turpitudinem (nom. turpitudo) "baseness," from turpis "vile, ugly, base, shameful," used in both the moral and the physical senses; of unknown origin. Perhaps originally "what one turns away from" (cf. L. trepit "he turns").

TURPITUDE - Everything done contrary to justice, honesty, modesty or good morals, is said to be done with turpitude.

Moral Turpitude is a legal concept in the USA, which refers to "conduct that is considered contrary to community standards of justice, honesty, or good morals"

Blackwater was founded by an extreme right-wing fundamentalist Christian mega-millionaire ex- Navy SEAL named Erik Prince, the scion of a wealthy conservative family that bankrolls far-right-wing causes.

Erik Prince was political at a very early age and watched as his father used his company as a cash-generating engine to fuel the rise of what we now know as the religious right in this country, as well as the Republican Revolution of 1994. His father gave the seed money to Gary Bauer to found the Family Research Council. Young Erik Prince was in the first crop of interns to serve at the Family Research Council. They gave significant funding to James Dobson and his group Focus on the Family, which is now sort of the premier evangelical organizing network in this country, the “prayer warriors.”

Personnel

Blackwater's president, Gary Jackson, and other business unit leaders are former Navy SEALs. Blackwater was founded and is owned by Erik Prince, who is also a former Navy SEAL.

Prince and Jackson are also major contributors to the Republican party. In addition, Prince was an intern in George H.W. Bush's White House and campaigned for Pat Buchanan in 1992.

Cofer Black, the company's current vice chairman, was the Bush adminstration's top counterterrorism official when 9/11 occurred. In 2002, he famously stated: "There was before 9/11 and after 9/11. After 9/11, the gloves come off." But Black is not alone, Blackwater has become home to a significant number of former senior CIA and Pentagon officials. Robert Richer became the firm's Vice President of Intelligence immediately after he resigned his position as Associate Deputy Director of Operations in fall 2005. He is formerly the head of the CIA's Near East Division.

In October 2006, Kenneth Starr, independent counsel in the impeachment case of Bill Clinton in 1999, represented Blackwater in front of the US Supreme Court in a case related to the March 2004 killing of four Blackwater employees in Fallujah, Iraq. In response to that event, Blackwater also hired the Republican lobbying and PR firm, the Alexander Strategy Group.

Ahmad Al-Rubaye / AFP / Getty Images

Blackwater USA contractors secure the site of a roadside explosion in central Baghdad in 2005. The U.S. Embassy said that the Blackwater convoy accused of killing eight civilians during a shootout on Sunday had come under fire, and some local Iraqi television accounts reported an exchange of gunfire at the scene in Baghdad.

The Iraqi government said Monday that it was revoking the license of an American security firm accused of involvement in the deaths of eight civilians in a firefight that followed a car bomb explosion near a State Department motorcade.

Interior Ministry spokesman Abdul-Karim Khalaf said eight civilians were killed and 13 were wounded when contractors believed to be working for Blackwater USA opened fire in a predominantly Sunni neighborhood of western Baghdad.

"We have canceled the license of Blackwater and prevented them from working all over Iraqi territory. We will also refer those involved to Iraqi judicial authorities," Khalaf said.

The spokesman said witness reports pointed to Blackwater involvement but said the shooting was still under investigation. It was not immediately clear if the measure against Blackwater was intended to be temporary or permanent.

Blackwater, based in Moyock, N.C., provides security for many U.S. civilian operations in the country.

The secretive company, run by a former Navy SEAL, has an estimated 1,000 employees in Iraq and at least $800 million in government contracts. It is one of the most high-profile security firms in Iraq, with its fleet of "Little Bird" helicopters and armed door gunners swarming Baghdad and beyond.

The decision to pull the license was likely to be challenged, as it would be a major blow to a company at the forefront of one of the main turning points in the war.

The 2004 battle of Fallujah — an unsuccessful military assault in which an estimated 27 U.S. Marines were killed, along with an unknown number of civilians — was retaliation for the killing, maiming and burning of four Blackwater guards in that city by a mob of insurgents.

Tens of thousands of foreign private security contractors work in Iraq — some with automatic weapons, body armor, helicopters and bulletproof vehicles — to provide protection for Westerners and dignitaries in Iraq as the country has plummeted toward anarchy and civil war.

Monday's action against Blackwater was likely to give the unpopular government a boost, given Iraqis' dislike of the contractors.

Interior Minister Jawad al-Bolani called the shootings "a crime that we cannot be silent about."

Many of the contractors have been accused of indiscriminately firing at American and Iraqi troops, and of shooting to death an unknown number of Iraqi citizens who got too close to their heavily armed convoys, but none has faced charges or prosecution.

"There have been so many innocent people they've killed over there, and they just keep doing it," said Katy Helvenston, the mother of Steve Helvenston, a Blackwater contractor who died during the 2004 ambush in Fallujah. "They have just a callous disregard for life."

Helvenston is now part of a lawsuit that accuses Blackwater of cutting corners that ultimately led to the death of her son and three others.

The question of whether they could face prosecution is legally murky. Unlike soldiers, the contractors are not bound by the Uniform Code of Military Justice. Under a special provision secured by American-occupying forces, they are exempt from prosecution by Iraqis for crimes committed there.

Khalaf, however, denied that.

The embassy also refused to answer any questions on Blackwater's status or legal issues, saying it was seeking clarification on the issue as part of the investigation, which was being carried out by the State Department's diplomatic security service and law enforcement officials working with the Iraqi government and the U.S. military.

Is there even a license to revoke? Buzz on the contractor street is that it isn't clear how this development will affect Blackwater. Allegedly, Blackwater doesn't have a "license" to revoke, and its contracts with the State Department and CIA may not be immediately affected. This could play out in an interesting (albeit depressing) powerplay between the al-Maliki, Iraq's Ministry of Interior, and the U.S. Government.

The issue of accountability is a troubling one, however, as Scahill reveals the Blackwater operatives are essentially above the law in Iraq. They can’t be prosecuted under military law because they’re civilians. But they have little to worry about from civilian law in the chaos of Iraq.

At one point in the book, a politician confronts a military official and claims Blackwater agents can get away with murder, and the official more or less admits he’s right. It’s a point that’s highlighted by another video featuring an alleged mercenary shooting people at random on a highway in Iraq (YouTube link).

It was inevitable. Private military contractors have been involve din all sorts of questionable incidents, since the very start of the Iraq enterprise. U.S. military officers frequently expressed their frustrations with sharing the battlefield with such private forces operating under their own rules and agendas, and worry about the consequences for their own operations. For example, Brigadier General Karl Horst, deputy commander of the US 3^rd Infantry Division (responsible for Baghdad area) tellingly put it two years back, “These guys run loose in this country and do stupid stuff. There’s no authority over them, so you can’t come down on them hard when they escalate force. They shoot people, and someone else has to deal with the aftermath.”

Karel Prinsloo/AP, File

A U.S. private security officer, with his face covered against dust, on board a Chinook helicopter in Iraq.

Blackwater Guards Accused of Past Deaths

By DEBORAH HASTINGS – 2 hours ago

NEW YORK (AP) — In the past year, employees of the Blackwater USA security firm have been involved in other incidents in which they were accused of killing civilians and security forces in Iraq.

On Dec. 24, 2006, a drunken Blackwater employee shot and killed a bodyguard for Iraq's Shiite vice president, Adel Abdul-Mahdi, according to Iraqi and U.S. officials.

The contractor had gotten lost on the way back to his barracks in the Green Zone and fired at least seven times when he was confronted by 30-year-old Raheem Khalaf Saadoun, an official in the vice president's office said on condition of anonymity because the case is still under investigation.

The contractor fled after the incident. Eventually, he made his way to the U.S. Embassy, where Blackwater officials arranged to have him flown home to the U.S., said American officials.

Blackwater spokeswoman Anne Tyrrell said earlier this year the company was cooperating with investigators from the Justice Department and the FBI. She declined to provide further details.

In May, Blackwater guards under contract to the State Department were involved in two other shootings in Iraq.

In one, a Blackwater guard shot to death an Iraqi deemed to be driving too close to a security detail near the Interior Ministry in Baghdad, enraging Iraqis. At the time, Tyrrell said the guard acted lawfully and appropriately, given the incident reports and witness accounts.

A day earlier, Blackwater guards and Interior Ministry forces exchanged gunfire on the streets of the capital. A passing U.S. military convoy intervened and stopped the fighting.

The Nation's Jeremy Scahill describes the rise of Blackwater USA, the world's most powerful mercenary army.

"As the government of the United States is not, in any sense, founded on the Christian religion; as it has in itself no character of enmity against the laws, religion or tranquility of Musselmen (Muslims) ... it is declared ... that no pretext arising from religious opinion shall ever product an interruption of the harmony existing between the two countries....
"The United States is not a Christian nation any more than it is a Jewish or a Mohammedan nation."

-- Treaty of Tripoli (1797), carried unanimously by the Senate and signed into law by John Adams (the original language is by Joel Barlow, US Consul)

SEE:

IRAQ- THIS WAR IS ABOUT PRIVATIZATION

Bad News For Bush

U.S. Supplies Iraqi Insurgents With Weapons

Surge Blackout

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