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  • Is CIA Lying About its Blackwater Contacts?

    After CIA director Leon Panetta revealed last summer that private contractor Blackwater was part of a covert CIA hit squad, tasked with summary killings and assassinations of al-Qaeda operatives, the CIA vowed to sever its contacts with the trigger-happy security firm. But did it do so? It doesn’t look like it. Last November, it became known that the company, (recently renamed Xe Services) remains part of a covert CIA program in Pakistan that includes planned assassinations and kidnappings of Taliban and al-Qaeda suspects. More recently, it was revealed that two of the seven Americans who died in the December 30 bomb attack at Forward Operating Base Chapman in Khost, Afghanistan, were actually Blackwater employees subcontracted by the CIA.

    The question is, why were these two Blackwater employees present during a sensitive security debriefing at the base, involving the entire leadership of the CIA team there, and even the Agency’s second-in-command in Afghanistan? As Nation magazine’s Jeremy Scahill correctly points out, “the fact that two Blackwater personnel were in such close proximity to the […] suicide bomber shows how deeply enmeshed Blackwater remains in sensitive CIA operations, including those CIA officials claim it no longer participates in, such as intelligence gathering and briefings with valuable agency assets”.

    January 8, 2010 by intelNews 11 Comments

    By JOSEPH FITSANAKIS | intelNews.org |

    Find this story at 8 Januari 2010 

    Tycoon, Contractor, Soldier, Spy

    Erik Prince, recently outed as a participant in a C.I.A. assassination program, has gained notoriety as head of the military-contracting juggernaut Blackwater, a company dogged by a grand-jury investigation, bribery accusations, and the voluntary-manslaughter trial of five ex-employees, set for next month. Lashing back at his critics, the wealthy former navy seal takes the author inside his operation in the U.S. and Afghanistan, revealing the role he’s been playing in America’s war on terror.

    Erik Prince, founder of the Blackwater security firm (recently renamed Xe), at the company’s Virginia offices. Photograph by Nigel Parry.

    I put myself and my company at the C.I.A.’s disposal for some very risky missions,” says Erik Prince as he surveys his heavily fortified, 7,000-acre compound in rural Moyock, North Carolina. “But when it became politically expedient to do so, someone threw me under the bus.” Prince—the founder of Blackwater, the world’s most notorious private military contractor—is royally steamed. He wants to vent. And he wants you to hear him vent.

    Erik Prince has an image problem—the kind that’s impervious to a Madison Avenue makeover. The 40-year-old heir to a Michigan auto-parts fortune, and a former navy seal, he has had the distinction of being vilified recently both in life and in art. In Washington, Prince has become a scapegoat for some of the Bush administration’s misadventures in Iraq—though Blackwater’s own deeds have also come in for withering criticism. Congressmen and lawyers, human-rights groups and pundits, have described Prince as a war profiteer, one who has assembled a rogue fighting force capable of toppling governments. His employees have been repeatedly accused of using excessive, even deadly force in Iraq; many Iraqis, in fact, have died during encounters with Blackwater. And in November, as a North Carolina grand jury was considering a raft of charges against the company, as a half-dozen civil suits were brewing in Virginia, and as five former Blackwater staffers were preparing for trial for their roles in the deaths of 17 Iraqis, The New York Times reported in a page-one story that Prince’s firm, in the aftermath of the tragedy, had sought to bribe Iraqi officials for their compliance, charges which Prince calls “lies … undocumented, unsubstantiated [and] anonymous.” (So infamous is the Blackwater brand that even the Taliban have floated far-fetched conspiracy theories, accusing the company of engaging in suicide bombings in Pakistan.)

    In Hollywood, meanwhile, a town that loves nothing so much as a good villain, Prince, with his blond crop and Daniel Craig mien, has become the screenwriters’ darling. In the film State of Play, a Blackwater clone (PointCorp.) uses its network of mercenaries for illegal surveillance and murder. On the Fox series 24, Jon Voight has played Jonas Hodges, a thinly veiled version of Prince, whose company (Starkwood) helps an African warlord procure nerve gas for use against U.S. targets.

    But the truth about Prince may be orders of magnitude stranger than fiction. For the past six years, he appears to have led an astonishing double life. Publicly, he has served as Blackwater’s C.E.O. and chairman. Privately, and secretly, he has been doing the C.I.A.’s bidding, helping to craft, fund, and execute operations ranging from inserting personnel into “denied areas”—places U.S. intelligence has trouble penetrating—to assembling hit teams targeting al-Qaeda members and their allies. Prince, according to sources with knowledge of his activities, has been working as a C.I.A. asset: in a word, as a spy. While his company was busy gleaning more than $1.5 billion in government contracts between 2001 and 2009—by acting, among other things, as an overseas Praetorian guard for C.I.A. and State Department officials—Prince became a Mr. Fix-It in the war on terror. His access to paramilitary forces, weapons, and aircraft, and his indefatigable ambition—the very attributes that have galvanized his critics—also made him extremely valuable, some say, to U.S. intelligence. (Full disclosure: In the 1990s, before becoming a journalist for CBS and then NBC News, I was a C.I.A. attorney. My contract was not renewed, under contentious circumstances.)

    But Prince, with a new administration in power, and foes closing in, is finally coming in from the cold. This past fall, though he infrequently grants interviews, he decided it was time to tell his side of the story—to respond to the array of accusations, to reveal exactly what he has been doing in the shadows of the U.S. government, and to present his rationale. He also hoped to convey why he’s going to walk away from it all.

    To that end, he invited Vanity Fair to his training camp in North Carolina, to his Virginia offices, and to his Afghan outposts. It seemed like a propitious time to tag along.
    Split Personality

    Erik Prince can be a difficult man to wrap your mind around—an amalgam of contradictory caricatures. He has been branded a “Christian supremacist” who sanctions the murder of Iraqi civilians, yet he has built mosques at his overseas bases and supports a Muslim orphanage in Afghanistan. He and his family have long backed conservative causes, funded right-wing political candidates, and befriended evangelicals, but he calls himself a libertarian and is a practicing Roman Catholic. Sometimes considered arrogant and reclusive—Howard Hughes without the O.C.D.—he nonetheless enters competitions that combine mountain-biking, beach running, ocean kayaking, and rappelling.

    The common denominator is a relentless intensity that seems to have no Off switch. Seated in the back of a Boeing 777 en route to Afghanistan, Prince leafs through Defense News while the film Taken beams from the in-flight entertainment system. In the movie, Liam Neeson plays a retired C.I.A. officer who mounts an aggressive rescue effort after his daughter is kidnapped in Paris. Neeson’s character warns his daughter’s captors:

    If you are looking for ransom, I can tell you I don’t have money. But what I do have are a very particular set of skills … skills that make me a nightmare for people like you. If you [don’t] let my daughter go now … I will look for you, I will find you, and I will kill you.

    Prince comments, “I used that movie as a teaching tool for my girls.” (The father of seven, Prince remarried after his first wife died of cancer in 2003.) “I wanted them to understand the dangers out there. And I wanted them to know how I would respond.”

    You can’t escape the impression that Prince sees himself as somehow destined, his mission anointed. It comes out even in the most personal of stories. During the flight, he tells of being in Kabul in September 2008 and receiving a two a.m. call from his wife, Joanna. Prince’s son Charlie, one year old at the time, had fallen into the family swimming pool. Charlie’s brother Christian, then 12, pulled him out of the water, purple and motionless, and successfully performed CPR. Christian and three siblings, it turns out, had recently received Red Cross certification at the Blackwater training camp.

    But there are intimations of a higher power at work as the story continues. Desperate to get home, Prince scrapped one itinerary, which called for a stay-over at the Marriott in Islamabad, and found a direct flight. That night, at the time Prince would have been checking in, terrorists struck the hotel with a truck bomb, killing more than 50. Prince says simply, “Christian saved Charlie’s life and Charlie saved mine.” At times, his sense of his own place in history can border on the evangelical. When pressed about suggestions that he’s a mercenary—a term he loathes—he rattles off the names of other freelance military figures, even citing Lafayette, the colonists’ ally during the Revolutionary War.

    Prince’s default mode is one of readiness. He is clenched-jawed and tightly wound. He cannot stand down. Waiting in the security line at Dulles airport just hours before, Prince had delivered a little homily: “Every time an American goes through security, I want them to pause for a moment and think, What is my government doing to inconvenience the terrorists? Rendition teams, Predator drones, assassination squads. That’s all part of it.”

    Such brazenness is not lost on a listener, nor is the fact that Prince himself is quite familiar with some of these tactics. In fact Prince, like other contractors, has drawn fire for running a company that some call a “body shop”—many of its staffers having departed military or intelligence posts to take similar jobs at much higher salaries, paid mainly by Uncle Sam. And to get those jobs done—protecting, defending, and killing, if required—Prince has had to employ the services of some decorated vets as well as some ruthless types, snipers and spies among them.

    Erik Prince flies coach internationally. It’s not just economical (“Why should I pay for business? Fly coach, you arrive at the same time”) but also less likely to draw undue attention. He considers himself a marked man. Prince describes the diplomats and dignitaries Blackwater protects as “Al Jazeera–worthy,” meaning that, in his view, “bin Laden and his acolytes would love to kill them in a spectacular fashion and have it broadcast on televisions worldwide.”

    Stepping off the plane at Kabul’s international airport, Prince is treated as if he, too, were Al Jazeera–worthy. He is immediately shuffled into a waiting car and driven 50 yards to a second vehicle, a beat-up minivan that is native to the core: animal pelts on the dashboard, prayer card dangling from the rearview mirror. Blackwater’s special-projects team is responsible for Prince’s security in-country, and except for their language its men appear indistinguishable from Afghans. They have full beards, headscarves, and traditional knee-length shirts over baggy trousers. They remove Prince’s sunglasses, fit him out with body armor, and have him change into Afghan garb. Prince is issued a homing beacon that will track his movements, and a cell phone with its speed dial programmed for Blackwater’s tactical-operations center.

    Prince in the tactical-operations center at a company base in Kabul. Photograph by Adam Ferguson.

    Once in the van, Prince’s team gives him a security briefing. Using satellite photos of the area, they review the route to Blackwater’s compound and point out where weapons and ammunition are stored inside the vehicle. The men warn him that in the event that they are incapacitated or killed in an ambush Prince should assume control of the weapons and push the red button near the emergency brake, which will send out a silent alarm and call in reinforcements.
    Black Hawks and Zeppelins

    Blackwater’s origins were humble, bordering on the primordial. The company took form in the dismal peat bogs of Moyock, North Carolina—not exactly a hotbed of the defense-contracting world.

    In 1995, Prince’s father, Edgar, died of a heart attack (the Evangelical James C. Dobson, founder of the socially conservative Focus on the Family, delivered the eulogy at the funeral). Edgar Prince left behind a vibrant auto-parts manufacturing business in Holland, Michigan, with 4,500 employees and a line of products ranging from a lighted sun visor to a programmable garage-door opener. At the time, 25-year-old Erik was serving as a navy seal (he saw service in Haiti, the Middle East, and Bosnia), and neither he nor his sisters were in a position to take over the business. They sold Prince Automotive for $1.35 billion.

    Erik Prince and some of his navy friends, it so happens, had been kicking around the idea of opening a full-service training compound to replace the usual patchwork of such facilities. In 1996, Prince took an honorable discharge and began buying up land in North Carolina. “The idea was not to be a defense contractor per se,” Prince says, touring the grounds of what looks and feels like a Disneyland for alpha males. “I just wanted a first-rate training facility for law enforcement, the military, and, in particular, the special-operations community.”

    Business was slow. The navy seals came early—January 1998—but they didn’t come often, and by the time the Blackwater Lodge and Training Center officially opened, that May, Prince’s friends and advisers thought he was throwing good money after bad. “A lot of people said, ‘This is a rich kid’s hunting lodge,’” Prince explains. “They could not figure out what I was doing.”

    Blackwater outpost near the Pakistan border, used for training Afghan police. Photograph by Adam Ferguson.

    Today, the site is the flagship for a network of facilities that train some 30,000 attendees a year. Prince, who owns an unmanned, zeppelin-esque airship and spent $45 million to build a fleet of customized, bomb-proof armored personnel carriers, often commutes to the lodge by air, piloting a Cessna Caravan from his home in Virginia. The training center has a private landing strip. Its hangars shelter a petting zoo of aircraft: Bell 412 helicopters (used to tail or shuttle diplomats in Iraq), Black Hawk helicopters (currently being modified to accommodate the security requests of a Gulf State client), a Dash 8 airplane (the type that ferries troops in Afghanistan). Amid the 52 firing ranges are virtual villages designed for addressing every conceivable real-world threat: small town squares, littered with blown-up cars, are situated near railway crossings and maritime mock-ups. At one junction, swat teams fire handguns, sniper rifles, and shotguns; at another, police officers tear around the world’s longest tactical-driving track, dodging simulated roadside bombs.

    In keeping with the company’s original name, the central complex, constructed of stone, glass, concrete, and logs, actually resembles a lodge, an REI store on steroids. Here and there are distinctive touches, such as door handles crafted from imitation gun barrels. Where other companies might have Us Weekly lying about the lobby, Blackwater has counterterror magazines with cover stories such as “How to Destroy Al Qaeda.”

    In fact, it was al-Qaeda that put Blackwater on the map. In the aftermath of the group’s October 2000 bombing of the U.S.S. Cole, in Yemen, the navy turned to Prince, among others, for help in re-training its sailors to fend off attackers at close range. (To date, the company says, it has put some 125,000 navy personnel through its programs.) In addition to providing a cash infusion, the navy contract helped Blackwater build a database of retired military men—many of them special-forces veterans—who could be called upon to serve as instructors.

    When al-Qaeda attacked the U.S. mainland on 9/11, Prince says, he was struck with the urge to either re-enlist or join the C.I.A. He says he actually applied. “I was rejected,” he admits, grinning at the irony of courting the very agency that would later woo him. “They said I didn’t have enough hard skills, enough time in the field.” Undeterred, he decided to turn his Rolodex into a roll call for what would in essence become a private army.

    After the terror attacks, Prince’s company toiled, even reveled, in relative obscurity, taking on assignments in Afghanistan and, after the U.S. invasion, in Iraq. Then came March 31, 2004. That was the day insurgents ambushed four of its employees in the Iraqi town of Fallujah. The men were shot, their bodies set on fire by a mob. The charred, hacked-up remains of two of them were left hanging from a bridge over the Euphrates.

    “It was absolutely gut-wrenching,” Prince recalls. “I had been in the military, and no one under my command had ever died. At Blackwater, we had never even had a firearms training accident. Now all of a sudden four of my guys aren’t just killed, but desecrated.” Three months later an edict from coalition authorities in Baghdad declared private contractors immune from Iraqi law.

    Subsequently, the contractors’ families sued Blackwater, contending the company had failed to protect their loved ones. Blackwater countersued the families for breaching contracts that forbid the men or their estates from filing such lawsuits; the company also claimed that, because it operates as an extension of the military, it cannot be held responsible for deaths in a war zone. (After five years, the case remains unresolved.) In 2007, a congressional investigation into the incident concluded that the employees had been sent into an insurgent stronghold “without sufficient preparation, resources, and support.” Blackwater called the report a “one-sided” version of a “tragic incident.”

    After Fallujah, Blackwater became a household name. Its primary mission in Iraq had been to protect American dignitaries, and it did so, in part, by projecting an image of invincibility, sending heavily armed men in armored Suburbans racing through the streets of Baghdad with sirens blaring. The show of swagger and firepower, which alienated both the locals and the U.S. military, helped contribute to the allegations of excessive force. As the war dragged on, charges against the firm mounted. In one case, a contractor shot and killed an Iraqi father of six who was standing along the roadside in Hillah. (Prince later told Congress that the contractor was fired for trying to cover up the incident.) In another, a Blackwater firearms technician was accused of drinking too much at a party in the Green Zone and killing a bodyguard assigned to protect Iraq’s vice president. The technician was fired but not prosecuted and later settled a wrongful-death suit with the man’s family.

    Those episodes, however, paled in comparison with the events of September 16, 2007, when a phalanx of Blackwater bodyguards emerged from their four-car convoy at a Baghdad intersection called Nisour Square and opened fire. When the smoke cleared, 17 Iraqi civilians lay dead. After 15 months of investigation, the Justice Department charged six with voluntary manslaughter and other offenses, insisting that the use of force was not only unjustified but unprovoked. One guard pleaded guilty and, in a trial set for February, is expected to testify against the others, all of whom maintain their innocence. The New York Times recently reported that in the wake of the shootings the company’s top executives authorized secret payments of about $1 million to Iraqi higher-ups in order to buy their silence—a claim Prince dismisses as “false,” insisting “[there was] zero plan or discussion of bribing any officials.”

    Nisour Square had disastrous repercussions for Blackwater. Its role in Iraq was curtailed, its revenue dropping 40 percent. Today, Prince claims, he is shelling out $2 million a month in legal fees to cope with a spate of civil lawsuits as well as what he calls a “giant proctological exam” by nearly a dozen federal agencies. “We used to spend money on R&D to develop better capabilities to serve the U.S. government,” says Prince. “Now we pay lawyers.”

    Does he ever. In North Carolina, a federal grand jury is investigating various allegations, including the illegal transport of assault weapons and silencers to Iraq, hidden in dog-food sacks. (Blackwater denied this, but confirmed hiding weapons on pallets of dog food to protect against theft by “corrupt foreign customs agents.”) In Virginia, two ex-employees have filed affidavits claiming that Prince and Blackwater may have murdered or ordered the murder of people suspected of cooperating with U.S. authorities investigating the company—charges which Blackwater has characterized as “scandalous and baseless.” One of the men also asserted in filings that company employees ran a sex and wife-swapping ring, allegations which Blackwater has called “anonymous, unsubstantiated and offensive.”

    Meanwhile, last February, Prince mounted an expensive rebranding campaign. Following the infamous ValuJet crash, in 1996, ValuJet disappeared into AirTran, after a merger, and moved on to a happy new life. Prince, likewise, decided to retire the Blackwater name and replace it with the name Xe, short for Xenon—an inert, non-combustible gas that, in keeping with his political leanings, sits on the far right of the periodic table. Still, Prince and other top company officials continued to use the name Blackwater among themselves. And as events would soon prove, the company’s reputation would remain as combustible as ever.

    Prince at a Kandahar airfield. Photograph Adam Ferguson.

    Spies and Whispers

    Last June, C.I.A. director Leon Panetta met in a closed session with the House and Senate intelligence committees to brief them on a covert-action program, which the agency had long concealed from Congress. Panetta explained that he had learned of the existence of the operation only the day before and had promptly shut it down. The reason, C.I.A. spokesman Paul Gimigliano now explains: “It hadn’t taken any terrorists off the street.” During the meeting, according to two attendees, Panetta named both Erik Prince and Blackwater as key participants in the program. (When asked to verify this account, Gimigliano notes that “Director Panetta treats as confidential discussions with Congress that take place behind closed doors.”) Soon thereafter, Prince says, he began fielding inquisitive calls from people he characterizes as far outside the circle of trust.

    It took three weeks for details, however sketchy, to surface. In July, The Wall Street Journal described the program as “an attempt to carry out a 2001 presidential authorization to capture or kill al Qaeda operatives.” The agency reportedly planned to accomplish this task by dispatching small hit teams overseas. Lawmakers, who couldn’t exactly quibble with the mission’s objective, were in high dudgeon over having been kept in the dark. (Former C.I.A. officials reportedly saw the matter differently, characterizing the program as “more aspirational than operational” and implying that it had never progressed far enough to justify briefing the Hill.)

    On August 20, the gloves came off. The New York Times published a story headlined cia sought blackwater’s help to kill jihadists. The Washington Post concurred: cia hired firm for assassin program. Prince confesses to feeling betrayed. “I don’t understand how a program this sensitive leaks,” he says. “And to ‘out’ me on top of it?” The next day, the Times went further, revealing Blackwater’s role in the use of aerial drones to kill al-Qaeda and Taliban leaders: “At hidden bases in Pakistan and Afghanistan … the company’s contractors assemble and load Hellfire missiles and 500-pound laser-guided bombs on remotely piloted Predator aircraft, work previously performed by employees of the Central Intelligence Agency.”

    E
    rik Prince, almost overnight, had undergone a second rebranding of sorts, this one not of his own making. The war profiteer had become a merchant of death, with a license to kill on the ground and in the air. “I’m an easy target,” he says. “I’m from a Republican family and I own this company outright. Our competitors have nameless, faceless management teams.”

    Prince blames Democrats in Congress for the leaks and maintains that there is a double standard at play. “The left complained about how [C.I.A. operative] Valerie Plame’s identity was compromised for political reasons. A special prosecutor [was even] appointed. Well, what happened to me was worse. People acting for political reasons disclosed not only the existence of a very sensitive program but my name along with it.” As in the Plame case, though, the leaks prompted C.I.A. attorneys to send a referral to the Justice Department, requesting that a criminal investigation be undertaken to identify those responsible for providing highly classified information to the media.

    By focusing so intently on Blackwater, Congress and the press overlooked the elephant in the room. Prince wasn’t merely a contractor; he was, insiders say, a full-blown asset. Three sources with direct knowledge of the relationship say that the C.I.A.’s National Resources Division recruited Prince in 2004 to join a secret network of American citizens with special skills or unusual access to targets of interest. As assets go, Prince would have been quite a catch. He had more cash, transport, matériel, and personnel at his disposal than almost anyone Langley would have run in its 62-year history.

    The C.I.A. won’t comment further on such assertions, but Prince himself is slightly more forthcoming. “I was looking at creating a small, focused capability,” he says, “just like Donovan did years ago”—the reference being to William “Wild Bill” Donovan, who, in World War II, served as the head of the Office of Strategic Services, the precursor of the modern C.I.A. (Prince’s youngest son, Charles Donovan—the one who fell into the pool—is named after Wild Bill.) Two sources familiar with the arrangement say that Prince’s handlers obtained provisional operational approval from senior management to recruit Prince and later generated a “201 file,” which would have put him on the agency’s books as a vetted asset. It’s not at all clear who was running whom, since Prince says that, unlike many other assets, he did much of his work on spec, claiming to have used personal funds to road-test the viability of certain operations. “I grew up around the auto industry,” Prince explains. “Customers would say to my dad, ‘We have this need.’ He would then use his own money to create prototypes to fulfill those needs. He took the ‘If you build it, they will come’ approach.”

    According to two sources familiar with his work, Prince was developing unconventional means of penetrating “hard target” countries—where the C.I.A. has great difficulty working either because there are no stations from which to operate or because local intelligence services have the wherewithal to frustrate the agency’s designs. “I made no money whatsoever off this work,” Prince contends. He is unwilling to specify the exact nature of his forays. “I’m painted as this war profiteer by Congress. Meanwhile I’m paying for all sorts of intelligence activities to support American national security, out of my own pocket.” (His pocket is deep: according to The Wall Street Journal, Blackwater had revenues of more than $600 million in 2008.)

    Clutch Cargo

    The Afghan countryside, from a speeding perch at 200 knots, whizzes by in a khaki haze. The terrain is rendered all the more nondescript by the fact that Erik Prince is riding less than 200 feet above it. The back of the airplane, a small, Spanish-built eads casa C-212, is open, revealing Prince in silhouette against a blue sky. Wearing Oakleys, tactical pants, and a white polo shirt, he looks strikingly boyish.

    A Blackwater aircraft en route to drop supplies to U.S. Special Forces in Afghanistan in September. Photograph by Adam Ferguson.

    As the crew chief initiates a countdown sequence, Prince adjusts his harness and moves into position. When the “go” order comes, a young G.I. beside him cuts a tether, and Prince pushes a pallet out the tail chute. Black parachutes deploy and the aircraft lunges forward from the sudden weight differential. The cargo—provisions and munitions—drops inside the perimeter of a forward operating base (fob) belonging to an elite Special Forces squad.

    Five days a week, Blackwater’s aviation arm—with its unabashedly 60s-spook name, Presidential Airways—flies low-altitude sorties to some of the most remote outposts in Afghanistan. Since 2006, Prince’s company has been conscripted to offer this “turnkey” service for U.S. troops, flying thousands of delivery runs. Blackwater also provides security for U.S. ambassador Karl Eikenberry and his staff, and trains narcotics and Afghan special police units.

    Once back on terra firma, Prince, a BlackBerry on one hip and a 9-mm. on the other, does a sweep around one of Blackwater’s bases in northeast Afghanistan, pointing out buildings recently hit by mortar fire. As a drone circles overhead, its camera presumably trained on the surroundings, Prince climbs a guard tower and peers down at a spot where two of his contractors were nearly killed last July by an improvised explosive device. “Not counting civilian checkpoints,” he says, “this is the closest base to the [Pakistani] border.” His voice takes on a melodramatic solemnity. “Who else has built a fob along the main infiltration route for the Taliban and the last known location for Osama bin Laden?” It doesn’t quite have the ring of Lawrence of Arabia’s “To Aqaba!,” but you get the picture.
    Going “Low-Pro”

    Blackwater has been in Afghanistan since 2002. At the time, the C.I.A.’s executive director, A. B. “Buzzy” Krongard, responding to his operatives’ complaints of being “worried sick about the Afghans’ coming over the fence or opening the doors,” enlisted the company to offer protection for the agency’s Kabul station. Going “low-pro,” or low-profile, paid off: not a single C.I.A. employee, according to sources close to the company, died in Afghanistan while under Blackwater’s protection. (Talk about a tight-knit bunch. Krongard would later serve as an unpaid adviser to Blackwater’s board, until 2007. And his brother Howard “Cookie” Krongard—the State Department’s inspector general—had to recuse himself from Blackwater-related oversight matters after his brother’s involvement with the company surfaced. Buzzy, in response, stepped down.)

    As the agency’s confidence in Blackwater grew, so did the company’s responsibilities, expanding from static protection to mobile security—shadowing agency personnel, ever wary of suicide bombers, ambushes, and roadside devices, as they moved about the country. By 2005, Blackwater, accustomed to guarding C.I.A. personnel, was starting to look a little bit like the C.I.A. itself. Enrique “Ric” Prado joined Blackwater after serving as chief of operations for the agency’s Counterterrorism Center (CTC). A short time later, Prado’s boss, J. Cofer Black, the head of the CTC, moved over to Blackwater, too. He was followed, in turn, by his superior, Rob Richer, second-in-command of the C.I.A.’s clandestine service. Of the three, Cofer Black had the outsize reputation. As Bob Woodward recounted in his book Bush at War, on September 13, 2001, Black had promised President Bush that when the C.I.A. was through with al-Qaeda “they will have flies walking across their eyeballs.” According to Woodward, “Black became known in Bush’s inner circle as the ‘flies-on-the-eyeballs guy.’” Richer and Black soon helped start a new company, Total Intelligence Solutions (which collects data to help businesses assess risks overseas), but in 2008 both men left Blackwater, as did company president Gary Jackson this year.

    Prince in his Virginia office. His company took in more than $1 billion from government contracts during the George W. Bush era. Photograph by Nigel Parry.

    Off and on, Black and Richer’s onetime partner Ric Prado, first with the C.I.A., then as a Blackwater employee, worked quietly with Prince as his vice president of “special programs” to provide the agency with what every intelligence service wants: plausible deniability. Shortly after 9/11, President Bush had issued a “lethal finding,” giving the C.I.A. the go-ahead to kill or capture al-Qaeda members. (Under an executive order issued by President Gerald Ford, it had been illegal since 1976 for U.S. intelligence operatives to conduct assassinations.) As a seasoned case officer, Prado helped implement the order by putting together a small team of “blue-badgers,” as government agents are known. Their job was threefold: find, fix, and finish. Find the designated target, fix the person’s routine, and, if necessary, finish him off. When the time came to train the hit squad, the agency, insiders say, turned to Prince. Wary of attracting undue attention, the team practiced not at the company’s North Carolina compound but at Prince’s own domain, an hour outside Washington, D.C. The property looks like an outpost of the landed gentry, with pastures and horses, but also features less traditional accents, such as an indoor firing range. Once again, Prince has Wild Bill on his mind, observing that “the O.S.S. trained during World War II on a country estate.”

    Among the team’s targets, according to a source familiar with the program, was Mamoun Darkazanli, an al-Qaeda financier living in Hamburg who had been on the agency’s radar for years because of his ties to three of the 9/11 hijackers and to operatives convicted of the 1998 bombings of U.S. Embassies in East Africa. The C.I.A. team supposedly went in “dark,” meaning they did not notify their own station—much less the German government—of their presence; they then followed Darkazanli for weeks and worked through the logistics of how and where they would take him down. Another target, the source says, was A. Q. Khan, the rogue Pakistani scientist who shared nuclear know-how with Iran, Libya, and North Korea. The C.I.A. team supposedly tracked him in Dubai. In both cases, the source insists, the authorities in Washington chose not to pull the trigger. Khan’s inclusion on the target list, however, would suggest that the assassination effort was broader than has previously been acknowledged. (Says agency spokesman Gimigliano, “[The] C.I.A. hasn’t discussed—despite some mischaracterizations that have appeared in the public domain—the substance of this effort or earlier ones.”)

    The source familiar with the Darkazanli and Khan missions bristles at public comments that current and former C.I.A. officials have made: “They say the program didn’t move forward because [they] didn’t have the right skill set or because of inadequate cover. That’s untrue. [The operation continued] for a very long time in some places without ever being discovered. This program died because of a lack of political will.”

    W
    hen Prado left the C.I.A., in 2004, he effectively took the program with him, after a short hiatus. By that point, according to sources familiar with the plan, Prince was already an agency asset, and the pair had begun working to privatize matters by changing the team’s composition from blue-badgers to a combination of “green-badgers” (C.I.A. contractors) and third-country nationals (unaware of the C.I.A. connection). Blackwater officials insist that company resources and manpower were never directly utilized—these were supposedly off-the-books initiatives done on Prince’s own dime, for which he was later reimbursed—and that despite their close ties to the C.I.A. neither Cofer Black nor Rob Richer took part. As Prince puts it, “We were building a unilateral, unattributable capability. If it went bad, we weren’t expecting the chief of station, the ambassador, or anyone to bail us out.” He insists that, had the team deployed, the agency would have had full operational control. Instead, due to what he calls “institutional osteoporosis,” the second iteration of the assassination program lost steam.

    Sometime after 2006, the C.I.A. would take another shot at the program, according to an insider who was familiar with the plan. “Everyone found some reason not to participate,” says the insider. “There was a sick-out. People would say to management, ‘I have a family, I have other obligations.’ This is the fucking C.I.A. They were supposed to lead the charge after al-Qaeda and they couldn’t find the people to do it.” Others with knowledge of the program are far more charitable and question why any right-thinking officer would sign up for an assassination program at a time when their colleagues—who had thought they had legal cover to engage in another sensitive effort, the “enhanced interrogations” program at secret C.I.A. sites in foreign countries—were finding themselves in legal limbo.

    America and Erik Prince, it seems, have been slow to extract themselves from the assassination business. Beyond the killer drones flown with Blackwater’s help along the Afghanistan-Pakistan border (President Obama has reportedly authorized more than three dozen such hits), Prince claims he and a team of foreign nationals helped find and fix a target in October 2008, then left the finishing to others. “In Syria,” he says, “we did the signals intelligence to geo-locate the bad guys in a very denied area.” Subsequently, a U.S. Special Forces team launched a helicopter-borne assault to hunt down al-Qaeda middleman Abu Ghadiyah. Ghadiyah, whose real name is Badran Turki Hishan Al-Mazidih, was said to have been killed along with six others—though doubts have emerged about whether Ghadiyah was even there that day, as detailed in a recent Vanity Fair Web story by Reese Ehrlich and Peter Coyote.

    And up until two months ago—when Prince says the Obama administration pulled the plug—he was still deeply engaged in the dark arts. According to insiders, he was running intelligence-gathering operations from a secret location in the United States, remotely coordinating the movements of spies working undercover in one of the so-called Axis of Evil countries. Their mission: non-disclosable.
    Exit Strategy

    Flying out of Kabul, Prince does a slow burn, returning to the topic of how exposed he has felt since press accounts revealed his role in the assassination program. The firestorm that began in August has continued to smolder and may indeed have his handlers wondering whether Prince himself is more of a liability than an asset. He says he can’t understand why they would shut down certain high-risk, high-payoff collection efforts against some of America’s most implacable enemies for fear that his involvement could, given the political climate, result in their compromise.

    He is incredulous that U.S. officials seem willing, in effect, to cut off their nose to spite their face. “I’ve been overtly and covertly serving America since I started in the armed services,” Prince observes. After 12 years building the company, he says he intends to turn it over to its employees and a board, and exit defense contracting altogether. An internal power struggle is said to be under way among those seeking to define the direction and underlying mission of a post-Prince Blackwater.

    He insists, simply, “I’m through.”

    In the past, Prince has entertained the idea of building a pre-positioning ship—complete with security personnel, doctors, helicopters, medicine, food, and fuel—and stationing it off the coast of Africa to provide “relief with teeth” to the continent’s trouble spots or to curb piracy off Somalia. At one point, he considered creating a rapidly deployable brigade that could be farmed out, for a fee, to a foreign government.

    For the time being, however, Prince contends that his plans are far more modest. “I’m going to teach high school,” he says, straight-faced. “History and economics. I may even coach wrestling. Hey, Indiana Jones taught school, too.”

    Stepping off the plane at Kabul’s international airport, Prince is treated as if he, too, were Al Jazeera–worthy. He is immediately shuffled into a waiting car and driven 50 yards to a second vehicle, a beat-up minivan that is native to the core: animal pelts on the dashboard, prayer card dangling from the rearview mirror. Blackwater’s special-projects team is responsible for Prince’s security in-country, and except for their language its men appear indistinguishable from Afghans. They have full beards, headscarves, and traditional knee-length shirts over baggy trousers. They remove Prince’s sunglasses, fit him out with body armor, and have him change into Afghan garb. Prince is issued a homing beacon that will track his movements, and a cell phone with its speed dial programmed for Blackwater’s tactical-operations center.

    Prince in the tactical-operations center at a company base in Kabul. Photograph by Adam Ferguson.

    Once in the van, Prince’s team gives him a security briefing. Using satellite photos of the area, they review the route to Blackwater’s compound and point out where weapons and ammunition are stored inside the vehicle. The men warn him that in the event that they are incapacitated or killed in an ambush Prince should assume control of the weapons and push the red button near the emergency brake, which will send out a silent alarm and call in reinforcements.
    Black Hawks and Zeppelins

    Blackwater’s origins were humble, bordering on the primordial. The company took form in the dismal peat bogs of Moyock, North Carolina—not exactly a hotbed of the defense-contracting world.

    In 1995, Prince’s father, Edgar, died of a heart attack (the Evangelical James C. Dobson, founder of the socially conservative Focus on the Family, delivered the eulogy at the funeral). Edgar Prince left behind a vibrant auto-parts manufacturing business in Holland, Michigan, with 4,500 employees and a line of products ranging from a lighted sun visor to a programmable garage-door opener. At the time, 25-year-old Erik was serving as a navy seal (he saw service in Haiti, the Middle East, and Bosnia), and neither he nor his sisters were in a position to take over the business. They sold Prince Automotive for $1.35 billion.

    Erik Prince and some of his navy friends, it so happens, had been kicking around the idea of opening a full-service training compound to replace the usual patchwork of such facilities. In 1996, Prince took an honorable discharge and began buying up land in North Carolina. “The idea was not to be a defense contractor per se,” Prince says, touring the grounds of what looks and feels like a Disneyland for alpha males. “I just wanted a first-rate training facility for law enforcement, the military, and, in particular, the special-operations community.”

    Business was slow. The navy seals came early—January 1998—but they didn’t come often, and by the time the Blackwater Lodge and Training Center officially opened, that May, Prince’s friends and advisers thought he was throwing good money after bad. “A lot of people said, ‘This is a rich kid’s hunting lodge,’” Prince explains. “They could not figure out what I was doing.”

    Blackwater outpost near the Pakistan border, used for training Afghan police. Photograph by Adam Ferguson.

    Today, the site is the flagship for a network of facilities that train some 30,000 attendees a year. Prince, who owns an unmanned, zeppelin-esque airship and spent $45 million to build a fleet of customized, bomb-proof armored personnel carriers, often commutes to the lodge by air, piloting a Cessna Caravan from his home in Virginia. The training center has a private landing strip. Its hangars shelter a petting zoo of aircraft: Bell 412 helicopters (used to tail or shuttle diplomats in Iraq), Black Hawk helicopters (currently being modified to accommodate the security requests of a Gulf State client), a Dash 8 airplane (the type that ferries troops in Afghanistan). Amid the 52 firing ranges are virtual villages designed for addressing every conceivable real-world threat: small town squares, littered with blown-up cars, are situated near railway crossings and maritime mock-ups. At one junction, swat teams fire handguns, sniper rifles, and shotguns; at another, police officers tear around the world’s longest tactical-driving track, dodging simulated roadside bombs.

    In keeping with the company’s original name, the central complex, constructed of stone, glass, concrete, and logs, actually resembles a lodge, an REI store on steroids. Here and there are distinctive touches, such as door handles crafted from imitation gun barrels. Where other companies might have Us Weekly lying about the lobby, Blackwater has counterterror magazines with cover stories such as “How to Destroy Al Qaeda.”

    In fact, it was al-Qaeda that put Blackwater on the map. In the aftermath of the group’s October 2000 bombing of the U.S.S. Cole, in Yemen, the navy turned to Prince, among others, for help in re-training its sailors to fend off attackers at close range. (To date, the company says, it has put some 125,000 navy personnel through its programs.) In addition to providing a cash infusion, the navy contract helped Blackwater build a database of retired military men—many of them special-forces veterans—who could be called upon to serve as instructors.

    When al-Qaeda attacked the U.S. mainland on 9/11, Prince says, he was struck with the urge to either re-enlist or join the C.I.A. He says he actually applied. “I was rejected,” he admits, grinning at the irony of courting the very agency that would later woo him. “They said I didn’t have enough hard skills, enough time in the field.” Undeterred, he decided to turn his Rolodex into a roll call for what would in essence become a private army.

    After the terror attacks, Prince’s company toiled, even reveled, in relative obscurity, taking on assignments in Afghanistan and, after the U.S. invasion, in Iraq. Then came March 31, 2004. That was the day insurgents ambushed four of its employees in the Iraqi town of Fallujah. The men were shot, their bodies set on fire by a mob. The charred, hacked-up remains of two of them were left hanging from a bridge over the Euphrates.

    “It was absolutely gut-wrenching,” Prince recalls. “I had been in the military, and no one under my command had ever died. At Blackwater, we had never even had a firearms training accident. Now all of a sudden four of my guys aren’t just killed, but desecrated.” Three months later an edict from coalition authorities in Baghdad declared private contractors immune from Iraqi law.

    Subsequently, the contractors’ families sued Blackwater, contending the company had failed to protect their loved ones. Blackwater countersued the families for breaching contracts that forbid the men or their estates from filing such lawsuits; the company also claimed that, because it operates as an extension of the military, it cannot be held responsible for deaths in a war zone. (After five years, the case remains unresolved.) In 2007, a congressional investigation into the incident concluded that the employees had been sent into an insurgent stronghold “without sufficient preparation, resources, and support.” Blackwater called the report a “one-sided” version of a “tragic incident.”

    After Fallujah, Blackwater became a household name. Its primary mission in Iraq had been to protect American dignitaries, and it did so, in part, by projecting an image of invincibility, sending heavily armed men in armored Suburbans racing through the streets of Baghdad with sirens blaring. The show of swagger and firepower, which alienated both the locals and the U.S. military, helped contribute to the allegations of excessive force. As the war dragged on, charges against the firm mounted. In one case, a contractor shot and killed an Iraqi father of six who was standing along the roadside in Hillah. (Prince later told Congress that the contractor was fired for trying to cover up the incident.) In another, a Blackwater firearms technician was accused of drinking too much at a party in the Green Zone and killing a bodyguard assigned to protect Iraq’s vice president. The technician was fired but not prosecuted and later settled a wrongful-death suit with the man’s family.

    Those episodes, however, paled in comparison with the events of September 16, 2007, when a phalanx of Blackwater bodyguards emerged from their four-car convoy at a Baghdad intersection called Nisour Square and opened fire. When the smoke cleared, 17 Iraqi civilians lay dead. After 15 months of investigation, the Justice Department charged six with voluntary manslaughter and other offenses, insisting that the use of force was not only unjustified but unprovoked. One guard pleaded guilty and, in a trial set for February, is expected to testify against the others, all of whom maintain their innocence. The New York Times recently reported that in the wake of the shootings the company’s top executives authorized secret payments of about $1 million to Iraqi higher-ups in order to buy their silence—a claim Prince dismisses as “false,” insisting “[there was] zero plan or discussion of bribing any officials.”

    Nisour Square had disastrous repercussions for Blackwater. Its role in Iraq was curtailed, its revenue dropping 40 percent. Today, Prince claims, he is shelling out $2 million a month in legal fees to cope with a spate of civil lawsuits as well as what he calls a “giant proctological exam” by nearly a dozen federal agencies. “We used to spend money on R&D to develop better capabilities to serve the U.S. government,” says Prince. “Now we pay lawyers.”

    Does he ever. In North Carolina, a federal grand jury is investigating various allegations, including the illegal transport of assault weapons and silencers to Iraq, hidden in dog-food sacks. (Blackwater denied this, but confirmed hiding weapons on pallets of dog food to protect against theft by “corrupt foreign customs agents.”) In Virginia, two ex-employees have filed affidavits claiming that Prince and Blackwater may have murdered or ordered the murder of people suspected of cooperating with U.S. authorities investigating the company—charges which Blackwater has characterized as “scandalous and baseless.” One of the men also asserted in filings that company employees ran a sex and wife-swapping ring, allegations which Blackwater has called “anonymous, unsubstantiated and offensive.”

    Meanwhile, last February, Prince mounted an expensive rebranding campaign. Following the infamous ValuJet crash, in 1996, ValuJet disappeared into AirTran, after a merger, and moved on to a happy new life. Prince, likewise, decided to retire the Blackwater name and replace it with the name Xe, short for Xenon—an inert, non-combustible gas that, in keeping with his political leanings, sits on the far right of the periodic table. Still, Prince and other top company officials continued to use the name Blackwater among themselves. And as events would soon prove, the company’s reputation would remain as combustible as ever.

    Prince at a Kandahar airfield. Photograph Adam Ferguson.

    Spies and Whispers

    Last June, C.I.A. director Leon Panetta met in a closed session with the House and Senate intelligence committees to brief them on a covert-action program, which the agency had long concealed from Congress. Panetta explained that he had learned of the existence of the operation only the day before and had promptly shut it down. The reason, C.I.A. spokesman Paul Gimigliano now explains: “It hadn’t taken any terrorists off the street.” During the meeting, according to two attendees, Panetta named both Erik Prince and Blackwater as key participants in the program. (When asked to verify this account, Gimigliano notes that “Director Panetta treats as confidential discussions with Congress that take place behind closed doors.”) Soon thereafter, Prince says, he began fielding inquisitive calls from people he characterizes as far outside the circle of trust.

    It took three weeks for details, however sketchy, to surface. In July, The Wall Street Journal described the program as “an attempt to carry out a 2001 presidential authorization to capture or kill al Qaeda operatives.” The agency reportedly planned to accomplish this task by dispatching small hit teams overseas. Lawmakers, who couldn’t exactly quibble with the mission’s objective, were in high dudgeon over having been kept in the dark. (Former C.I.A. officials reportedly saw the matter differently, characterizing the program as “more aspirational than operational” and implying that it had never progressed far enough to justify briefing the Hill.)

    On August 20, the gloves came off. The New York Times published a story headlined cia sought blackwater’s help to kill jihadists. The Washington Post concurred: cia hired firm for assassin program. Prince confesses to feeling betrayed. “I don’t understand how a program this sensitive leaks,” he says. “And to ‘out’ me on top of it?” The next day, the Times went further, revealing Blackwater’s role in the use of aerial drones to kill al-Qaeda and Taliban leaders: “At hidden bases in Pakistan and Afghanistan … the company’s contractors assemble and load Hellfire missiles and 500-pound laser-guided bombs on remotely piloted Predator aircraft, work previously performed by employees of the Central Intelligence Agency.”

    E
    rik Prince, almost overnight, had undergone a second rebranding of sorts, this one not of his own making. The war profiteer had become a merchant of death, with a license to kill on the ground and in the air. “I’m an easy target,” he says. “I’m from a Republican family and I own this company outright. Our competitors have nameless, faceless management teams.”

    Prince blames Democrats in Congress for the leaks and maintains that there is a double standard at play. “The left complained about how [C.I.A. operative] Valerie Plame’s identity was compromised for political reasons. A special prosecutor [was even] appointed. Well, what happened to me was worse. People acting for political reasons disclosed not only the existence of a very sensitive program but my name along with it.” As in the Plame case, though, the leaks prompted C.I.A. attorneys to send a referral to the Justice Department, requesting that a criminal investigation be undertaken to identify those responsible for providing highly classified information to the media.

    By focusing so intently on Blackwater, Congress and the press overlooked the elephant in the room. Prince wasn’t merely a contractor; he was, insiders say, a full-blown asset. Three sources with direct knowledge of the relationship say that the C.I.A.’s National Resources Division recruited Prince in 2004 to join a secret network of American citizens with special skills or unusual access to targets of interest. As assets go, Prince would have been quite a catch. He had more cash, transport, matériel, and personnel at his disposal than almost anyone Langley would have run in its 62-year history.

    The C.I.A. won’t comment further on such assertions, but Prince himself is slightly more forthcoming. “I was looking at creating a small, focused capability,” he says, “just like Donovan did years ago”—the reference being to William “Wild Bill” Donovan, who, in World War II, served as the head of the Office of Strategic Services, the precursor of the modern C.I.A. (Prince’s youngest son, Charles Donovan—the one who fell into the pool—is named after Wild Bill.) Two sources familiar with the arrangement say that Prince’s handlers obtained provisional operational approval from senior management to recruit Prince and later generated a “201 file,” which would have put him on the agency’s books as a vetted asset. It’s not at all clear who was running whom, since Prince says that, unlike many other assets, he did much of his work on spec, claiming to have used personal funds to road-test the viability of certain operations. “I grew up around the auto industry,” Prince explains. “Customers would say to my dad, ‘We have this need.’ He would then use his own money to create prototypes to fulfill those needs. He took the ‘If you build it, they will come’ approach.”

    According to two sources familiar with his work, Prince was developing unconventional means of penetrating “hard target” countries—where the C.I.A. has great difficulty working either because there are no stations from which to operate or because local intelligence services have the wherewithal to frustrate the agency’s designs. “I made no money whatsoever off this work,” Prince contends. He is unwilling to specify the exact nature of his forays. “I’m painted as this war profiteer by Congress. Meanwhile I’m paying for all sorts of intelligence activities to support American national security, out of my own pocket.” (His pocket is deep: according to The Wall Street Journal, Blackwater had revenues of more than $600 million in 2008.)

    Clutch Cargo

    The Afghan countryside, from a speeding perch at 200 knots, whizzes by in a khaki haze. The terrain is rendered all the more nondescript by the fact that Erik Prince is riding less than 200 feet above it. The back of the airplane, a small, Spanish-built eads casa C-212, is open, revealing Prince in silhouette against a blue sky. Wearing Oakleys, tactical pants, and a white polo shirt, he looks strikingly boyish.

    A Blackwater aircraft en route to drop supplies to U.S. Special Forces in Afghanistan in September. Photograph by Adam Ferguson.

    As the crew chief initiates a countdown sequence, Prince adjusts his harness and moves into position. When the “go” order comes, a young G.I. beside him cuts a tether, and Prince pushes a pallet out the tail chute. Black parachutes deploy and the aircraft lunges forward from the sudden weight differential. The cargo—provisions and munitions—drops inside the perimeter of a forward operating base (fob) belonging to an elite Special Forces squad.

    Five days a week, Blackwater’s aviation arm—with its unabashedly 60s-spook name, Presidential Airways—flies low-altitude sorties to some of the most remote outposts in Afghanistan. Since 2006, Prince’s company has been conscripted to offer this “turnkey” service for U.S. troops, flying thousands of delivery runs. Blackwater also provides security for U.S. ambassador Karl Eikenberry and his staff, and trains narcotics and Afghan special police units.

    Once back on terra firma, Prince, a BlackBerry on one hip and a 9-mm. on the other, does a sweep around one of Blackwater’s bases in northeast Afghanistan, pointing out buildings recently hit by mortar fire. As a drone circles overhead, its camera presumably trained on the surroundings, Prince climbs a guard tower and peers down at a spot where two of his contractors were nearly killed last July by an improvised explosive device. “Not counting civilian checkpoints,” he says, “this is the closest base to the [Pakistani] border.” His voice takes on a melodramatic solemnity. “Who else has built a fob along the main infiltration route for the Taliban and the last known location for Osama bin Laden?” It doesn’t quite have the ring of Lawrence of Arabia’s “To Aqaba!,” but you get the picture.
    Going “Low-Pro”

    Blackwater has been in Afghanistan since 2002. At the time, the C.I.A.’s executive director, A. B. “Buzzy” Krongard, responding to his operatives’ complaints of being “worried sick about the Afghans’ coming over the fence or opening the doors,” enlisted the company to offer protection for the agency’s Kabul station. Going “low-pro,” or low-profile, paid off: not a single C.I.A. employee, according to sources close to the company, died in Afghanistan while under Blackwater’s protection. (Talk about a tight-knit bunch. Krongard would later serve as an unpaid adviser to Blackwater’s board, until 2007. And his brother Howard “Cookie” Krongard—the State Department’s inspector general—had to recuse himself from Blackwater-related oversight matters after his brother’s involvement with the company surfaced. Buzzy, in response, stepped down.)

    As the agency’s confidence in Blackwater grew, so did the company’s responsibilities, expanding from static protection to mobile security—shadowing agency personnel, ever wary of suicide bombers, ambushes, and roadside devices, as they moved about the country. By 2005, Blackwater, accustomed to guarding C.I.A. personnel, was starting to look a little bit like the C.I.A. itself. Enrique “Ric” Prado joined Blackwater after serving as chief of operations for the agency’s Counterterrorism Center (CTC). A short time later, Prado’s boss, J. Cofer Black, the head of the CTC, moved over to Blackwater, too. He was followed, in turn, by his superior, Rob Richer, second-in-command of the C.I.A.’s clandestine service. Of the three, Cofer Black had the outsize reputation. As Bob Woodward recounted in his book Bush at War, on September 13, 2001, Black had promised President Bush that when the C.I.A. was through with al-Qaeda “they will have flies walking across their eyeballs.” According to Woodward, “Black became known in Bush’s inner circle as the ‘flies-on-the-eyeballs guy.’” Richer and Black soon helped start a new company, Total Intelligence Solutions (which collects data to help businesses assess risks overseas), but in 2008 both men left Blackwater, as did company president Gary Jackson this year.

    Prince in his Virginia office. His company took in more than $1 billion from government contracts during the George W. Bush era. Photograph by Nigel Parry.

    Off and on, Black and Richer’s onetime partner Ric Prado, first with the C.I.A., then as a Blackwater employee, worked quietly with Prince as his vice president of “special programs” to provide the agency with what every intelligence service wants: plausible deniability. Shortly after 9/11, President Bush had issued a “lethal finding,” giving the C.I.A. the go-ahead to kill or capture al-Qaeda members. (Under an executive order issued by President Gerald Ford, it had been illegal since 1976 for U.S. intelligence operatives to conduct assassinations.) As a seasoned case officer, Prado helped implement the order by putting together a small team of “blue-badgers,” as government agents are known. Their job was threefold: find, fix, and finish. Find the designated target, fix the person’s routine, and, if necessary, finish him off. When the time came to train the hit squad, the agency, insiders say, turned to Prince. Wary of attracting undue attention, the team practiced not at the company’s North Carolina compound but at Prince’s own domain, an hour outside Washington, D.C. The property looks like an outpost of the landed gentry, with pastures and horses, but also features less traditional accents, such as an indoor firing range. Once again, Prince has Wild Bill on his mind, observing that “the O.S.S. trained during World War II on a country estate.”

    Among the team’s targets, according to a source familiar with the program, was Mamoun Darkazanli, an al-Qaeda financier living in Hamburg who had been on the agency’s radar for years because of his ties to three of the 9/11 hijackers and to operatives convicted of the 1998 bombings of U.S. Embassies in East Africa. The C.I.A. team supposedly went in “dark,” meaning they did not notify their own station—much less the German government—of their presence; they then followed Darkazanli for weeks and worked through the logistics of how and where they would take him down. Another target, the source says, was A. Q. Khan, the rogue Pakistani scientist who shared nuclear know-how with Iran, Libya, and North Korea. The C.I.A. team supposedly tracked him in Dubai. In both cases, the source insists, the authorities in Washington chose not to pull the trigger. Khan’s inclusion on the target list, however, would suggest that the assassination effort was broader than has previously been acknowledged. (Says agency spokesman Gimigliano, “[The] C.I.A. hasn’t discussed—despite some mischaracterizations that have appeared in the public domain—the substance of this effort or earlier ones.”)

    The source familiar with the Darkazanli and Khan missions bristles at public comments that current and former C.I.A. officials have made: “They say the program didn’t move forward because [they] didn’t have the right skill set or because of inadequate cover. That’s untrue. [The operation continued] for a very long time in some places without ever being discovered. This program died because of a lack of political will.”

    W
    hen Prado left the C.I.A., in 2004, he effectively took the program with him, after a short hiatus. By that point, according to sources familiar with the plan, Prince was already an agency asset, and the pair had begun working to privatize matters by changing the team’s composition from blue-badgers to a combination of “green-badgers” (C.I.A. contractors) and third-country nationals (unaware of the C.I.A. connection). Blackwater officials insist that company resources and manpower were never directly utilized—these were supposedly off-the-books initiatives done on Prince’s own dime, for which he was later reimbursed—and that despite their close ties to the C.I.A. neither Cofer Black nor Rob Richer took part. As Prince puts it, “We were building a unilateral, unattributable capability. If it went bad, we weren’t expecting the chief of station, the ambassador, or anyone to bail us out.” He insists that, had the team deployed, the agency would have had full operational control. Instead, due to what he calls “institutional osteoporosis,” the second iteration of the assassination program lost steam.

    Sometime after 2006, the C.I.A. would take another shot at the program, according to an insider who was familiar with the plan. “Everyone found some reason not to participate,” says the insider. “There was a sick-out. People would say to management, ‘I have a family, I have other obligations.’ This is the fucking C.I.A. They were supposed to lead the charge after al-Qaeda and they couldn’t find the people to do it.” Others with knowledge of the program are far more charitable and question why any right-thinking officer would sign up for an assassination program at a time when their colleagues—who had thought they had legal cover to engage in another sensitive effort, the “enhanced interrogations” program at secret C.I.A. sites in foreign countries—were finding themselves in legal limbo.

    America and Erik Prince, it seems, have been slow to extract themselves from the assassination business. Beyond the killer drones flown with Blackwater’s help along the Afghanistan-Pakistan border (President Obama has reportedly authorized more than three dozen such hits), Prince claims he and a team of foreign nationals helped find and fix a target in October 2008, then left the finishing to others. “In Syria,” he says, “we did the signals intelligence to geo-locate the bad guys in a very denied area.” Subsequently, a U.S. Special Forces team launched a helicopter-borne assault to hunt down al-Qaeda middleman Abu Ghadiyah. Ghadiyah, whose real name is Badran Turki Hishan Al-Mazidih, was said to have been killed along with six others—though doubts have emerged about whether Ghadiyah was even there that day, as detailed in a recent Vanity Fair Web story by Reese Ehrlich and Peter Coyote.

    And up until two months ago—when Prince says the Obama administration pulled the plug—he was still deeply engaged in the dark arts. According to insiders, he was running intelligence-gathering operations from a secret location in the United States, remotely coordinating the movements of spies working undercover in one of the so-called Axis of Evil countries. Their mission: non-disclosable.
    Exit Strategy

    By Adam Ciralsky

    Find this story at Januari 2010

     

    Vanity Fair © Condé Nast Digital. Your California Privacy Rights.

    Blackwater/Academy settles weapons-smuggling charges

    In the eyes of many, the United States-based security firm formerly known as Blackwater is synonymous with ‘scandal’. Founded in 1997 by self-confessed CIA agent Erik Prince, the company was awarded hundreds of millions of dollars in non-competitive contract bids by the Bush administration, to provide wide-ranging security services in Iraq. But the company’s ‘shoot-first-ask-questions-later’ attitude resulted in numerous bloody incidents in the country, including the 2007 Nisur Square massacre, in which at least 14 Iraqi civilians were killed by trigger-happy Blackwater guards. In 2009, a frustrated US Department of State refused to renew the company’s governmental contracts, after which Blackwater terminated its partnership with the US government (or did it?). What is perhaps less known about the company, now renamed to Academi LLC, is that it has for years been the subject of several investigations by US authorities for a host of criminal offences, ranging from selling secret plans to foreign governments to illicit weapons trafficking. According to court documents unsealed yesterday at the United States District Court in New Bern, North Carolina, Academi has agreed to pay $7.5 million to settle some of these charges. Under the agreement, the company has owned up to 17 different criminal violations with which it was charged after a five-year multi-agency federal investigation led by the Department of Justice. The charges include possessing unregistered fully automatic weapons in the US, illegally exporting encrypted satellite-telephone hardware to Sudan, training foreign nationals without a license, giving classified documents to foreign governments, as well as selling weapons to the Kingdom of Jordan without US government authorization and then lying about it to US federal firearms officials. It is worth noting that yesterday’s settlement was in addition to a separate $42 million settlement agreed in 2010 with the US Department of State. The latter had charged Blackwater/Academi with violating the US Arms Export Control and the International Trafficking in Arms Regulations Acts. Interestingly, the attorney for the US government, Thomas G. Walker, chose his words carefully yesterday in speaking publicly about the case. He said that the proceedings concluded “a lengthy and complex investigation into a company which has provided valuable services to the United States government, but which, at times, and in many ways, failed to comply with important laws and regulations concerning how we, as a country, interact with our international allies and adversaries”. But some of the investigators who actually worked on the ground in the case were far less diplomatic in their court testimony. Jeannine A. Hammett, a Special Agent and Criminal Investigator with the Internal Revenue Service, accused Blackwater/Academi’s senior leadership of breaking the trust of the American public by committing crimes “to line their own pockets”.

    August 8, 2012 by intelNews 1 Comment

    By JOSEPH FITSANAKIS | intelNews.org |

    Find this story at 8 August 2012

    New Blackwater Iraq Scandal: Guns, Silencers and Dog Food

    Ex-employees Tell ABC News the Firm Used Dog Food Sacks to Smuggle Unauthorized Weapons to Iraq

    A federal grand jury in North Carolina is investigating allegations the controversial private security firm Blackwater illegally shipped assault weapons and silencers to Iraq, hidden in large sacks of dog food, ABCNews.com has learned.

    Under State Department rules, Blackwater is prohibited from using certain assault weapons and silencers in Iraq because they are considered “offensive” weapons inappropriate for Blackwater’s role as a private security firm protecting US diplomatic missions.

    “The only reason you need a silencer is if you want to assassinate someone,” said former CIA intelligence officer John Kiriakou, an ABC News consultant.

    Six Blackwater employees are under investigation by another federal grand jury, in Washington, D.C., in connection with the shooting deaths of at least 17 civilians in September 2007 at a Baghdad traffic circle. Prosecutors are expected to return indictments in the next few weeks, according to people familiar with the case.

    The investigation of the alleged dog food smuggling scheme began last year after two Blackwater employees were caught trying to sell stolen weapons in North Carolina. The two, Kenneth Cashwell and William “Max” Grumiaux pleaded guilty in February and became government witnesses, according to court documents.

    Two other former employees tell ABCNews.com they also witnessed the dog food smuggling operation. They say the weapons were actually hidden inside large sacks of dog food, packaged at company headquarters in North Carolina and sent to Iraq for the company’s 20 bomb-sniffing dogs.

    Larger items, including M-4 assault weapons, were secreted on shipping pallets surrounded by stacks of dog food bags, the former employees said. The entire pallet would be wrapped in cellophane shrink wrap, the former employees said, making it less likely US Customs inspectors would look too closely.

    In a statement, Blackwater did not address directly the allegations involving silencers but says “all firearms shipped to Iraq by Blackwater were given proper US government license.” The statement denied Blackwater owned or possessed any M4 weapons in Iraq.

    US Army officials told ABCNews.com earlier this year, at least one Blackwater M4 weapon was discovered during a raid on an suspected insurgent location in Iraq.

    Last year, a US Department of Commerce inspector at JFK airport in New York discovered a two-way radio hidden in a dog food sack being shipped by Blackwater to Iraq, according to people familiar with the incident.

    Blackwater says the radio did not need a license and was hidden among the dog food sacks, not inside the dog food.

    The company says it is a common practice “to prevent corrupt foreign customs agents and shipping workers from stealing the valuables.”

    In addition to the grand jury investigation, Blackwater sources say the company is facing a multi-million dollar fine for some 900 instances in which it violated State Department licensing requirements for the export of certain weapons and technical know-how.

    Blackwater acknowledged in its statements “numerous mistakes in complex and demanding area of export compliance,” saying most of the violations were failures of paperwork not “nefarious smuggling.”

    Of the 900 cases, about 100 of them have been referred to the Department of Justice for possible criminal prosecution, according to lawyers briefed on the case.

    By BRIAN ROSS and JASON RYAN

    November 14, 2008—

    Find this story at 14 November 2008

    Copyright © 2012 ABC News Internet Ventures

    Why did US Government Take Blackwater to Court?

    Last week I gave a live television interview to the main news program of RT, about the company formerly known as Blackwater. As intelNews reported on August 8, the private military outfit, which rebranded itself to Academi in late 2011, agreed to pay $7.5 million to settle no fewer than 17 violations of United States federal laws, including several charges of illegal weapons exports. This was hardly the first time that the scandal-prone company made headlines for breaking the law. Last week’s settlement followed a separate $42 million settlement agreed in 2010 with the US Department of State. The latter had charged Blackwater/Academi with violating the US Arms Export Control and International Trafficking in Arms Regulations Acts. Those familiar with the murky world of private military contractors are aware that these companies are often hired by governments precisely because they are willing and able to break the law in pursuit of tactical directives. In fact, the main difference between Blackwater/Academi and other private military contractors is not its disregard for legal boundaries, but the lack of discretion with which it keeps breaking the law. This is precisely the reason why it regularly finds itself charged with a host of different criminal violations.

    Now, there is little doubt that the services Blackwater/Academi provided to the US government in Iraq and Afghanistan far exceeded things such as VIP protection or tactical training. In one typical case, the company was found to have illegally shipped to Iraq weapon silencers, hidden among sacks of dog food intended for its K-9 unit. As I told RT news, one does not have to be an expert on the operational side of intelligence to realize that there is really only one thing you need gun silencers for —and it’s not VIP protection.

    But if Blackwater/Academi resorted to breaking the law in order to assist the US government’s military or intelligence objectives in Iraq, Afghanistan, and elsewhere, why was it taken to court by that very government? The answer, as I told RT, has to do with the fact that governments —including America’s— are not monolithic. They are complex amalgamations of actors, often with competing interests, who fight for bureaucratic dominance as often as they collaborate in pursuit of common goals.

    Blackwater/Academi is a case in point: the company has for over a decade had a very cozy relationship with certain elements of the US government apparatus, notably the CIA, the George W. Bush White House, and some offices in the State Department. But other governmental interest groups, including parts of the Pentagon, the Internal Revenue Service, as well as the Federal Bureau of Investigation, have been skeptical about Blackwater/Academi’s operations since even before 9/11. It is not surprising, therefore, that government agencies like the IRS or the FBI examine Blackwater/Academi’s role with reference to their own, narrow administrative goals, while disregarding the broader strategic benefits that others in the US government may attribute to these very operations. It is plausible, for instance, that by presenting the King of Jordan with a birthday present consisting of a case of state-of-the-art fully automatic weapons, Blackwater/Academi was acting as a conduit for the US Department of State or the CIA. The FBI, which has always considered Blackwater/Academi as a band of mercenary cowboys, could care less about the relationship between the Royal House of Jordan and the State Department. It therefore takes the company to court, and as in fact it did, for illegally exporting weapons to a foreign country.

    August 13, 2012 by intelNews

    By JOSEPH FITSANAKIS | intelNews.org |

    Find this story at 13 August 2012

    MoD lobbying claims: the key figures

    Top brass are said to have boasted of access to ministers, sparking a crackdown on lobbying at the Ministry of Defence

    General Lord Richard Dannatt, the former head of the army

    The Sunday Times claimed Dannatt had offered to help two executives from a South Korean defence company who wanted to sell the UK military a hi-tech drone. Dannatt offered to speak to Bernard Gray, the civilian chief of defence materiel. He was quoted as saying he had engineered a seat at a formal dinner with the Ministry of Defence’s new permanent secretary, Jon Thompson, to help another company, Capital Symonds, which is bidding for a £400m contract to manage the MoD’s estates. The two men were school friends, he said.

    In a lengthy rebuttal, Dannatt said he had made it clear to the undercover reporters that “I would need to meet the manufacturer and verify for myself whether the product was viable. I also told them that I was not particularly up-to-date with defence procurement matters and in particular had no idea whether the MoD had already contracted to acquire such a mini UAV.” He admitted that an “indirect approach” to senior people such as General Sir David Richards, chief of the defence staff, Gray and Thompson might be helpful. With regard to Capital Symonds, Dannatt said he had “no contract with them, have received no payment or benefit from them, hold no shares in the company and am not a director”.

    He said he had “never been asked to lobby and have no intention of lobbying” for them and said the Sunday Times had got confused about the conversation. The general said he had not lobbied in a way that contravened rules and would regard any such claim as “seriously defamatory”.

    Lieutenant General Sir John Kiszely, president of the Royal British Legion

    The Sunday Times claimed Kiszley boasted he knew the 10 currently serving generals that he regarded as worth talking to with regard to procurement. The paper said Kiszely described having a close relationship with the new armed forces minister, Andrew Robathan, who was going to stay with him over Christmas. Kiszely also said his ceremonial roles for the legion gave him access to Philip Hammond, the defence secretary, and Richards. One such occasion was the annual Festival of Remembrance, when he stands next to the prime minister. Confronted by the Sunday Times, Kiszley insisted he “always kept my role as national president of the Royal British Legion completely separate from my business interests”. The MoD said Robathan had not received an invitation to Kiszely’s at Christmas. “They have only met infrequently and he never raised the work of private clients,” the MoD said. The Royal British Legion said it intended to hold its own investigation into whether Kiszely had broken any rules.

    Admiral Sir Trevor Soar

    The commander in chief of the Royal Navy fleet until March this year, Soar told the undercover reporters he knew “all the ministers” at the MoD. As he has only recently retired, Soar is one of two former officers who could have flouted the guidelines set out by the Advisory Committee on Business Appointments (ACOBA). This stipulates that you cannot lobby for two years after retiring. Soar is quoted as saying “theoretically we are banned from lobbying ministers … we call it something different”. Soar said he preferred the term consultant. He has since said all his private jobs had been given official approval and that he is only motivated by wanting to bring “battle-winning equipment to the navy”. He denied breaking rules.

    Lieutenant General Sir Richard Applegate

    The Sunday Times claimed the former head of army procurement boasted about having spent the past 18 months working on behalf of an Israeli arms firm and had successfully lobbied the MoD to release £500m for a helicopter safety programme. If true, he could be in breach of the ACOBA rules – because the activity would have taken place within two years of him leaving service. But, approached by the paper, he denied breaking any rules and said: “At no stage did I lobby or agree to a covert political lobbying campaign.”

    Lord Stirrup, the air chief marshal and former chief of the defence staff

    Stirrup made clear he had never lobbied the government for private clients, but told the undercover reporters the defence minister in the Lords was “a friend” and that he also knew the minister for the armed forces and other serving senior members of the military.

    Speaking on Sky news, Stirrup said: “I was asked about my contacts. If you’re pressed about them then of course you say what they are. I was asked about whether I know ministers – and I do. What I also said, which was not reported, was that approaching ministers is not the way to do it … you need to understand the military’s requirements, and they’re not set by ministers.”

    General Sir Mike Jackson

    guardian.co.uk, Sunday 14 October 2012 19.13 BST

    Find this story at 14 October 2012
    © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved.

    Arms firms call up ‘generals for hire’

    TOP-RANKING retired military officers have been secretly filmed boasting about lobbying to win multi-million-pound defence deals for arms firms in breach of official rules.

    The “generals for hire” can be exposed after a Sunday Times investigation recorded them offering their contacts with ministers and former colleagues for six-figure sums.

    During a three-month investigation into the revolving door between the Ministry of Defence (MoD) and private arms companies:

    ■ Lieutenant-General Sir John Kiszely, a Falklands war hero and former head of the Defence Academy, confided that he could use his role as president of the Royal British Legion to push his clients’ agenda with the prime minister and other senior figures at Remembrance Day events. He also bragged about lobbying on a multimillion-pound contract that was in official “purdah”.

    ■ Lieutenant-General Richard Applegate, a former MoD procurement chief, described a secret and successful lobbying campaign in parliament for a £500m military programme on

    Insight Published: 14 October 2012

    Find this story at 14 October 2012

    © Times Newspapers Ltd 2012

    MoD staff and thousands of military officers join arms firms

    Guardian research in the aftermath of the ‘jobs for generals’ scandal shows extent of links between MoD and private sector

    Lt General Sir John Kiszely, who has resigned as president of the Royal British Legion, was one of several former senior members of the military caught in a lobbying sting. Photograph: Fiona Hanson/Press Association

    Senior military officers and Ministry of Defence officials have taken up more than 3,500 jobs in arms companies over the past 16 years, according to figures that reveal the extent of the “revolving door” between the public and private sector.

    The data, compiled by the Guardian from freedom of information requests, shows how the industry swoops on former officials and military personnel once they have left service, with hundreds of senior officers being given jobs every year.

    The figures for 2011-12 show 231 jobs went to former officials and military personnel – a rise from the previous year’s total of 101. Another 93 have been approved since January. In total 3,572 jobs have been approved since 1996.

    The disclosure comes in the aftermath of a “jobs for generals” scandal that led to the resignation of the president of the Royal British Legion, Lieutenant General Sir John Kiszely, who was embarrassed in a newspaper lobbying sting.

    Kiszely was one of several former senior members of the military caught on film by Sunday Times reporters who were pretending to seek lobbyists for a South Korean defence company.

    Boasting about his connections, Kiszely described the annual Festival of Remembrance as a “tremendous networking opportunity” and said he was spending Christmas with the armed forces minister, Andrew Robothan.

    In his resignation letter, Kiszely admitted he had made “exaggerated and foolish claims”, but denied any impropriety.

    Admiral Trevor Soar, second in command of the Royal Navy until the spring, has also quit his role as an advisor at the large UK defence and engineering company Babcock. The firm said Kiszely had been sacked from his role at the company, too.

    The MoD began its own inquiry on Monday into the access that former members of the military have to serving officials. This may lead to a tightening of current restrictions and blanket bans on certain individuals approaching senior staff in the ministry.

    Figures obtained by the Guardian relate to the number of jobs approved under business appointment rules for armed forces personnel and MoD civilians. They show that there has been a regular flow into the private sector every year since records began in 1996. There has never been fewer than 101 and the highest is 360.

    Bernard Jenkin, the Conservative MP who chairs a Commons committee that oversees the rules governing the appointment of former military personnel and ministers, told the Guardian it was time the government legislated in this area to bring proper transparency and accountability.

    Jenkin said the advisory committee on business appointments (Acoba), which scrutinises when the top brass can accept new jobs, was toothless because it could be ignored.

    “The Acoba is merely advisory and it will not do,” he said. “There is no way that the present arrangements provide the reassurance to the public or protection to anyone that might be crossing from the public sector to the private sector.”

    The furore began at the weekend with the Sunday Times investigation in which six former members of the military were approached for help by journalists purporting to be working for a defence firm.

    Those fooled by the sting included Lord Dannatt, a former head of the army; Lieutenant General Richard Applegate, a former head of procurement at the MoD; and Lord Stirrup, a former chief of the defence staff.

    All of those involved intimated they knew people at the top of the MoD who could help the firm. Some bragged about their connections to ministers and the MoD’s most senior civil servants.

    Though they all denied wrongdoing, at least two of them appear to have been in breach of Acoba guidelines. These state that senior officers have to wait up to two years before they can lobby on behalf of defence companies. Soar, who retired this March, suggested he could ignore those guidelines if he was described as a consultant. Applegate, who has only just past the two years’ “purdah”, claimed he had spent the past 18 months working on behalf of an Israeli arms firm and had successfully lobbied the MoD to release £500m for a helicopter safety programme.

    But even if the men have defied the Acoba rules, there is no way of sanctioning them or the firms with whom they might have been working.

    Jenkin said the public administration select committee (Pasc) had flagged this problem to the government in July and had recommended adopting a much tougher regime.

    “We recommended that there should be a statutory appointment of a conflict of interest and ethics commissioner, with statutory rules so that it is very clear what people can and cannot do. Acoba does not have any powers. This episode shows that and I hope the government will now look favourably on our proposals. They have yet to respond to them.”

    A Cabinet Office spokesman said: “This is an important issue as events over the weekend have shown. We are currently considering issues in relation to business appointment rules as part of our response to the Pasc report published in July.”

    Jim Murphy, the shadow defence secretary, said the system needed to be changed. “It is ludicrous that rules can be broken without sanction and so we must see systematic change to restore confidence and standards.

    “Military expertise should not be lost after retirement, but contact on defence contracts must be transparent and within established guidelines. We must get to the bottom of what happened. We must also establish the facts of ministerial involvement and awareness in these cases.”

    Labour has tabled a series of questions on the issue, including a demand for details of meetings between former members of the military and serving civil servants, senior officers and ministers.

    Babcock announced that Kiszely and Soar had quit the company. They had both been recruited as advisers – the former to offer insight into the potential future needs of the military, the latter on exports. “The statements made by Sir John Kiszely, in the course of his attempt to win a job elsewhere, do not reflect his role for us,” the company said.

    “The facts are that he was not recruited to perform any lobbying role; he has never been asked to perform such a role and indeed, irrespective of his comments, he has never performed any such role for this company. We have a very clear code of conduct for all of our employees, and these inaccurate comments clearly fall foul of our code. For this reason, Sir John will not continue to work with Babcock. Sir Trevor Soar has expressed regret over the embarrassment caused by his interview, and his resignation has been accepted by the company.”

    Nick Hopkins, Rob Evans and Richard Norton-Taylor
    The Guardian, Monday 15 October 2012 21.56 BST

    Find this story at 15 October 2012

    © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved.

    Un agente francese dietro la morte di Gheddafi

    Il merito della cattura del rais sarebbe stato dei servizi di Parigi. Il Colonnello «venduto» all’Occidente da Assad

    TRIPOLI – Sarebbe stato un «agente straniero», e non le brigate rivoluzionarie libiche, a sparare il colpo di pistola alla testa che avrebbe ucciso Moammar Gheddafi il 20 ottobre dell’anno scorso alla periferia di Sirte. Non è la prima volta che in Libia viene messa in dubbio la versione ufficiale e più diffusa sulla fine del Colonnello. Ma ora è lo stesso Mahmoud Jibril, ex premier del governo transitorio e al momento in lizza per la guida del Paese dopo le elezioni parlamentari del 7 luglio, a rilanciare la versione del complotto ordito da un servizio segreto estero. «Fu un agente straniero mischiato alle brigate rivoluzionarie a uccidere Gheddafi», ha dichiarato due giorni fa durante un’intervista con l’emittente egiziana «Sogno Tv» al Cairo, dove si trova per partecipare ad un dibattito sulle Primavere arabe.

    PISTA FRANCESE – Tra gli ambienti diplomatici occidentali nella capitale libica il commento ufficioso più diffuso è che, se davvero ci fu la mano di un sicario al servizio degli 007 stranieri, questa «quasi certamente era francese». Il ragionamento è noto. Fin dall’inizio del sostegno Nato alla rivoluzione, fortemente voluto dal governo di Nicolas Sarkozy, Gheddafi minacciò apertamente di rivelare i dettagli dei suoi rapporti con l’ex presidente francese, compresi i milioni di dollari versati per finanziare la sua candidatura e la campagna alle elezioni del 2007. «Sarkozy aveva tutti i motivi per cercare di far tacere il Colonnello e il più rapidamente possibile», ci hanno ripetuto ieri fonti diplomatiche europee a Tripoli.

    RIVELAZIONI – Questa tesi è rafforzata dalle rivelazioni raccolte dal «Corriere» tre giorni fa a Bengasi. Qui Rami El Obeidi, ex responsabile per i rapporti con le agenzie di informazioni straniere per conto del Consiglio Nazionale Transitorio (l’ex organismo di autogoverno dei rivoluzionari libici) sino alle metà del 2011, ci ha raccontato le sue conoscenze sulle modalità che permisero alla Nato di individuare il luogo dove si era nascosto il Colonnello dopo la liberazione di Tripoli per mano dei rivoluzionari tra il 20 e 23 agosto 2011. «Allora si riteneva che Gheddafi fosse fuggito nel deserto e verso il confine meridionale della Libia assieme ad un manipolo di seguaci con l’intenzione di riorganizzare la resistenza», spiega El Obeidi. La notizia era ripetuta di continuo dagli stessi rivoluzionari, che avevano intensificato gli attacchi sulla regione a sud di Bani Walid e verso le oasi meridionali. In realtà Gheddafi aveva trovato rifugio nella città lealista di Sirte. Aggiunge El Obeidi: «Qui il rais cercò di comunicare tramite il suo satellitare Iridium con una serie di fedelissimi fuggiti in Siria sotto la protezione di Bashar Assad. Tra loro c’era anche il suo delfino per la propaganda televisiva, Yusuf Shakir (oggi sarebbe sano e salvo in incognito a Praga).

    Dal nostro inviato LORENZO CREMONESI

    Dal nostro inviato LORENZO CREMONESI

    Find this story at 1 October 2012

    Copyright 2012 © RCS Mediagroup S.p.a. Tutti i diritti sono riservati

    Edwin P. Wilson, the Spy Who Lived It Up, Dies at 84; Part spy, part tycoon, Edwin P. Wilson lived large.

    He claimed to own 100 corporations in the United States and Europe, many of them real and many of them shells. He had an apartment in Geneva; a hunting lodge in England; a seaside villa in Tripoli, Libya; a town house in Washington; and real estate in North Carolina, Lebanon and Mexico. He entertained congressmen, generals and Central Intelligence Agency bigwigs at his 2,338-acre estate in Northern Virginia.

    He showered minks on his mistress, whom he called “Wonder Woman.” He owned three private planes and bragged that he knew flight attendants on the Concorde by name.

    His preferred habitat was a hall of mirrors. His business empire existed as a cover for espionage, but it also made him a lot of money. He had the advantage of being able to call the Internal Revenue Service and use national security jargon to get the details on a potential customer. And if the I.R.S. questioned his own tax filings, he terminated the discussion by saying he was a C.I.A. operative on a covert mission.

    “Being in the C.I.A. was like putting on a magic coat that forever made him invisible and invincible,” Peter Maas wrote in “Manhunt,” his 1986 book about Mr. Wilson.

    For Mr. Wilson, who died on Sept. 10 in Seattle at 84, the adventure collapsed with his arrest in 1982 on charges of selling Libya 20 tons of powerful explosives.

    Over the next two years, he was tried in four federal cases in four different courts, accused of, among other things, smuggling arms and plotting to murder his wife. He was sentenced to a total of 52 years in prison. He served 22 of them, mostly in solitary confinement. Then the dagger of fate took a strange twist.

    After studying thousands of documents obtained under the Freedom of Information Act, Mr. Wilson and his lawyer went back to court and demolished the government’s case.

    Mr. Wilson’s sole defense was that he had been working for the C.I.A., serving his country, when he sold the explosives to Libya. The prosecution’s case had rested on an affidavit by the C.I.A.’s third-ranking official denying that Mr. Wilson had been working for the agency at the time. An hour after being read the affidavit, a jury found Mr. Wilson guilty.

    Two decades later, the evidence Mr. Wilson had collected convinced a federal judge in Houston, Lynn H. Hughes, that he had in fact been working for the agency and that the C.I.A. had lied.

    “Because the government knowingly used false evidence against him and suppressed favorable evidence, his conviction will be vacated,” Judge Hughes wrote. He added, “America will not defeat Libyan terrorism by double-crossing a part-time informal government agent.”

    In 2004, a year after the judge’s ruling, Mr. Wilson was released from Allenwood federal penitentiary in Pennsylvania. Since then he had lived in Seattle on a monthly Social Security check of $1,080. He died of complications from heart-valve replacement surgery, his nephew Scott Wilson said.

    Up until his death, Mr. Wilson was still hoping to persuade two other federal courts to void his convictions on the other charges.

    Edwin Paul Wilson was born into a poor farm family in Nampa, Idaho, on May 3, 1928. A member of Future Farmers of America, he had a newspaper route and sometimes supplemented his income by rolling a drunk, Mr. Maas wrote in “Manhunt.” He shipped out as a seaman before returning to earn a bachelor’s degree in industrial management from the University of Portland. He joined the Marines and served in Korea after the conflict there ended.

    Flying home, he fell into a conversation with a passenger, who told him that he might like working for the C.I.A. The passenger did not identify himself, but Mr. Wilson wrote down a name and a phone number to call. The agency hired him in 1955. His first job was guarding U-2 spy planes.

    In 1960, the C.I.A. sent him to Cornell for graduate studies in labor relations, which he put to use against Communism in unions around the world. In one assignment he paid Corsican mobsters to keep leftist dockworkers in line; in another, he released cockroaches in the hotel rooms of Soviet labor delegations.

    In 1964, on behalf of the agency, Mr. Wilson started a maritime consulting firm so that the C.I.A. could better monitor international shipping. By nudging up costs and skimping on taxes, he multiplied his own income.

    Mr. Wilson left the C.I.A. in 1971, at least publicly, to join the Office of Naval Intelligence. Again he formed companies in service of the government and took them with him when he left the government in 1976. He grew rich and lived lavishly.

    Several years later, a top C.I.A. official asked Mr. Wilson to go to Libya to keep an eye on Ilich Ramírez Sánchez, better known as the Venezuelan terrorist Carlos the Jackal, who was living there. That led to several weapons deals. In one, a Libyan asked him to throw in a few pistols to send to Libyan embassies. One was used to kill a Libyan dissident in Bonn. “That I feel bad about,” Mr. Wilson told The Washington Post in a 2004 interview.

    He also arranged for former Green Berets to train Libyan troops, and for airplane and helicopter pilots to work for Libya. There was speculation in news publications that he had contributed to the deaths of a dozen Libyan dissidents around the world. He later maintained that all of his activities had been done to gather information for the C.I.A.

    Unknown to Mr. Wilson, investigators had been building a case against him since 1976, when Kevin Mulcahy, one of his partners, approached the C.I.A. and the F.B.I. with grave doubts about the legality and ethics of Mr. Wilson’s business dealings.

    Lured by investigators to the Dominican Republic in 1982, Mr. Wilson was flown to New York and eventually indicted on various charges in federal courts in Washington, Virginia, New York and Houston. He was tried four times over the next two years.

    In Washington, he was acquitted of charges that he had solicited assassins to kill a Libyan dissident. In Virginia, he was convicted of exporting weapons, including the one used in the Bonn killing, and sentenced to 15 years in prison and fined $200,000.

    September 22, 2012

    By DOUGLAS MARTIN

    Find this story at 22 September 2012

    © 2012 The New York Times Company

    Former CIA operative Edwin Wilson dies at 84; Ex-CIA operative who illegally sold arms to Libya dies

    SEATTLE (AP) — Edwin Wilson set up front companies abroad for the CIA, made millions in the arms trade and entertained generals and congressmen at his sprawling Virginia farm.

    His high-powered, jet-setting life in the 1970s and early 1980s followed a career in the CIA. But it came crashing down when he was branded a traitor and convicted in 1983 for shipping 20 tons of C-4 plastic explosives to Libya.

    After two decades in prison, Wilson finally got the conviction overturned, convincing a judge that he had continued to work informally for the agency.

    The man who once posed as a rich American businessman abroad spent his final years living with his brother near Seattle.

    Wilson died Sept. 10 from complications from a heart valve replacement surgery, said Craig Emmick, a director at Columbia Funeral Home in Seattle. He was 84.

    “Our family always supported him and believed in him,” his nephew, Scott Wilson, said Saturday, adding that the biggest part of his uncle’s vindication was “that the label of being a traitor would be taken off.”

    “He never considered himself a traitor, of course,” Wilson added.

    Wilson was born May 3, 1928, to a farming family in Nampa, Idaho. He worked as a merchant seaman, and earned a psychology degree from the University of Portland in 1953.

    He joined the Marines and fought in the last days of the Korean War, according to his death notice. He went to work for the Central Intelligence Agency in 1955 after being discharged from the Marines.

    Wilson entered the arms trade after leaving the CIA in 1971, according to a 2004 Washington Post article.

    “I had a couple of villas that were very, very nice,” he told the newspaper at the time. “I had Pakistani houseboys and I had Libyans working for me, typing up proposals in Arabic.”

    In 1982, he was lured out of hiding in Libya and brought to New York for arrest.

    A federal court in Virginia convicted him of exporting firearms to Libya without permission and sentenced him to 10 years. He was convicted in Texas in 1983, receiving a 17-year sentence for similar crimes.

    A New York court also sentenced him to 25 years, to run consecutively with the Texas and Virginia sentences, for attempted murder, criminal solicitation and other charges involving claims that Wilson conspired behind bars to have witnesses and prosecutors killed.

    (AP) – Sep 22, 2012

    Find this story at 22 September 2012

    Copyright © 2012 The Associated Press. All rights reserved.

    US General: American Military Spies ‘Across Africa’

    A U-28A plane, painted in a civilian paint scheme, is seen about to touch down on a landing strip, in this file photo. (US Airforce)

    America’s top commander in Africa revealed that the U.S. military has conducted spy operations all over the continent as part of the fight against international adversaries from al Qaeda-allied terror groups that target the homeland to suspected war criminals like Joseph Kony.

    “Do we collect information across Africa? Yes, we do,” U.S. Gen. Carter Ham, commander of U.S. Africa Command, said in a leadership conference at the Africa Center for Strategic Studies Monday.

    In an attempt to clarify recent press reports that the U.S. military had set up “spy locations” throughout Africa, Ham said that U.S. troops do at times go on “short-term deployments of capabilities” in various African nations, but always with the permission of the host country.

    Ham did not explain what exactly those capabilities are, but gave as an example the hunt for Joseph Kony, the notorious leader of the brutal Lord’s Resistance Army — a hunt the U.S. military has supported with the permission of four local governments. Last October, President Obama announced that 100 American special operations troops had been sent to central Africa to help track Kony.

    “To have some intelligence collection capability that has the ability to monitor the areas in which we believe the Lord’s Resistance Army is operating, to be able to see, to be able to listen, to be able to collect information which we then pass to the four nations, four African nations, which are participating, I think is a good way ahead,” Ham said.

    Ham’s admission comes two weeks after The Washington Post reported that the U.S. military had secretly expanded its presence in Africa to include a network of small air bases used to spy on terrorist organizations there. According to the Post, the military uses small, unarmed turbo-prop planes disguised as private charters to carry out sensitive intelligence collection.

    Part of that program appeared to have been revealed in February when the Department of Defense announced the deaths of four special operations servicemen near Djibouti. The four men died after their U-28 plane — a “non-standard” surveillance aircraft similar in appearance to a private plane — was involved in an accident.

    Gen.: Future Role for US Military in Libya, ‘Ideal’ Position in Somalia

    Ham echoed fears previously voiced by U.S. officials to ABC News about a possible foothold extremist groups like al Qaeda may be trying to make in Libya and elsewhere in Africa. AQIM, an al Qaeda offshoot based in northwestern Africa, has publicly said it has “benefitted” from the chaos in Libya already.

    By LEE FERRAN
    June 26, 2012

    Find this story at 26 June 2012

    Copyright © 2012 ABC News Internet Ventures. Yahoo! – ABC News Network

    Libya Could Be An Opportunity For CIA, If Spies Stick Around

    Libyans celebrate the end of the Gadhafi regime in Benghazi, October 2011. After the attack on the U.S. consulate, these same Libyans could be key for the CIA’s counterterrorism efforts. Photo: Flickr/Magherebia

    President Obama told the truth when he said there would be no U.S. ground troops in Libya after last year’s war to oust dictator Moammar Gadhafi. He just left out a lot of context — like how eastern Libya, the site of the deadly September 11 assault on the U.S. consulate in Benghazi, would become a major staging ground for American contractors and intelligence operatives as they try to take the measure of the local Islamist militants.

    The future of that effort is now in question after an attack that killed four Americans, including a U.S. ambassador and two former Navy SEALs. The assault has led Americans to vacate Benghazi for their safety, even though various militant groups continue their operations. It’s a disaster for U.S. intelligence efforts in the region, especially since the attack has made brutally clear how real the jihadi threat in eastern Libya remains.

    But there may be the smallest of silver linings to this black cloud, if American operatives are able to capitalize on it. The aftermath of the attack shows widespread displeasure with Benghazi’s jihadist groups, with thousands marching in protest. That’s an opportunity the CIA could use to rebuild its intelligence gathering.

    The New York Times reports that one of the compounds in the lightly-secured Benghazi consulate was a CIA safe house. From there, intelligence personnel and contractors — like the ex-Navy SEAL Glen Doherty, who died in the attack — attempted to locate and destroy the thousands of rockets and missiles that went missing during the war. They also attempted to gather information on the constellation of extremist militias that have emerged after the downfall of Gadhafi.

    Now they may not. While U.S. surveillance drones dot the skies over Libya, what remains of the intelligence operation below may have already departed Benghazi, understandably fearing for its safety. An anonymous U.S. official described it to the Times as a “catastrophic intelligence loss” that leaves the U.S. with “our eyes poked out.” While other officials dispute that characterization, the first account administration officials provided of the incident mentioned that remaining U.S. personnel in eastern Libya had been extracted.

    Some important background: Obama’s decision to support the Libyan revolution had an unintended consequence for the CIA. Behind the scenes, it had collaborated with Gadhafi’s brutal intelligence apparatus to track (and occasionally torture) suspected Libyan terrorists. Now, the Gadhafi intelligence apparatus was gone, leaving the CIA without its proxy eyes and ears, and a weak interim government of unproven ability operated in its place.

    And eastern Libya is not a place to be without eyes and ears. While the Arab Spring may have undermined one of al-Qaida’s central rationales for existing — waging war to overthrow U.S.-backed dictators — but opportunities for related or sympathetic jihadi groups to fill the vacuums left by overthrown regimes have expanded. That’s on stark display in eastern Libya. A massive intelligence trove captured from al-Qaida in Iraq in 2007 revealed that the city of Derna, with a population of 100,000, sent 52 fighters to wage jihad in Iraq, more than the Saudi capitol of Riyadh, a city of four million. As militia groups coalesced in post-Gadhafi Libya, alliances shifted and new organizations moved in, word of a growing extremist threat in the east even broke through in major media. Focal point: Derna.

    Whatever intelligence network the CIA built on the ground in eastern Libya failed it two weeks ago in Benghazi. And whether or not there were specific warnings of the 9/11 anniversary attack, the State Department in the spring hired a British security firm to help protect the consulate. And the diary of the slain U.S. ambassador, Christopher Stevens, revealed that he was worried about “a rise in Islamic extremism and al Qaida’s growing presence in Libya,” CNN reported.

    By Spencer AckermanEmail AuthorSeptember 24, 2012 | 11:01 am | Categories: Shadow Wars, Spies,
    Secrecy and Surveillance

    Find this story at 24 September 2012

    Wired.com © 2012 Condé Nast. All rights reserved.

    White House widens covert ops presence in North Africa

    WASHINGTON – Small teams of special operations forces arrived at American embassies throughout North Africa in the months before militants launched the fiery attack that killed the U.S. ambassador in Libya. The soldiers’ mission: Set up a network that could quickly strike a terrorist target or rescue a hostage.

    But the teams had yet to do much counterterrorism work in Libya, though the White House signed off a year ago on the plan to build the new military task force in the region and the advance teams had been there for six months, according to three U.S. counterterror officials and a former intelligence official.

    The counterterror effort indicates that the administration has been worried for some time about a growing threat posed by al-Qaida and its offshoots in North Africa. But officials say the military organization was too new to respond to the attack in Benghazi, where the administration now believes armed al-Qaida-linked militants surrounded the lightly guarded U.S. compound, set it on fire and killed Ambassador Chris Stevens and three other Americans.

    Republicans have questioned whether the Obama administration has been hiding key information or hasn’t known what happened in the immediate aftermath of the attack.

    As of early September, the special operations teams still consisted only of liaison officers who were assigned to establish relationships with local governments and U.S. officials in the region. Only limited counterterrorism operations have been conducted in Africa so far.

    “There are no plans at this stage for unilateral U.S. military operations” in the region, Pentagon spokesman George Little said Tuesday, adding that the focus was on helping African countries build their own forces.

    For the Special Operations Command, spokesman Col. Tim Nye would not discuss “the missions and or locations of its counterterrorist forces” except to say that special operations troops are in 75 countries daily conducting missions.

    The go-slow approach being taken by the Army’s top clandestine counterterrorist unit – known as Delta Force – is an effort by the White House to counter criticism from some U.S. lawmakers, human rights activists and others that the anti-terror fight is shifting largely to a secret war using special operations raids and drone strikes, with little public accountability. The administration has been taking its time when setting up the new unit to get buy-in from all players who might be affected, such as the U.S. ambassadors, CIA station chiefs, regional U.S. military commanders and local leaders.

    Eventually, the Delta Force group will form the backbone of a military task force responsible for combating al-Qaida and other terrorist groups across the region with an arsenal that includes drones. But first, it will work to win acceptance by helping North African nations build their own special operations and counterterror units.

    The Obama administration has been concerned about the growing power and influence of al-Qaida offshoots in Yemen, Somalia, Iraq and North Africa. Only the Yemeni branch has tried to attack American territory directly so far, with a series of thwarted bomb plots aimed at U.S.-bound aircraft. A Navy SEAL task force set up in 2009 has used a combination of raids and drone strikes to fight militants in Yemen and Somalia, working together with the CIA and local forces.

    The new task force would work in much the same way to combat al-Qaida’s North African affiliates, which are growing in numbers and are awash in weapons from post-revolutionary Libya’s looted stockpiles. They are well-funded by a criminal network trafficking in drugs and hostages.

    Published: 07:12 PM, Tue Oct 02, 2012

    By Kimberly Dozier

    The Associated Press

    Find this story at 2 October 2012

    Copyright 2012 – The Fayetteville Observer, Fayetteville, N.C.

    Spy chiefs used fake info to raid fund

    SENIOR crime intelligence officials planted paid informers to make fake right-wing-related threats against the government.

    This was allegedly part of a wider strategy to loot the unit’s Secret Service Account for personal benefit.

    Law enforcement agency sources allege that spy bosses worked their way into the R600 million-a-year slush fund by fabricating information to create a false impression of imminent, unprecedented attacks on black people and ANC members.

    It is understood that in the run-up to the ANC’s centenary celebrations in the Free State in January, spy masters in North West used one of their informers to threaten chaos and violence against the ruling party, unless it stemmed farm attacks.

    Claiming to have detected a threat, they allegedly asked for and got additional money – believed to be millions – from the slush fund on the pretext that they wanted to remunerate “sources” who tipped them off.

    In one incident, a masked man made chilling threats against black people and the ANC in a recorded video last year alongside right-winger Andre Visagie, a former secretary-general of the Afrikaner Weerstandsbeweging who formed the Geloftevolk Republikeine (Covenant People Republicans).

    The video was posted on YouTube, sparking fear and costly investigations by law enforcement agencies.

    Visagie said he would comment after viewing the video.

    Three security cluster sources said the threats were behind the police’s decision to deploy an Nyala permanently outside the ANC’s headquarters in the Joburg CBD.

    A confidential document penned by one of the investigators, a copy of which is in the possession of Independent Newspapers, points to the staged events.

    These entail crime intelligence officials planting informers to make false threats, meant to justify the looting of the fund by intelligence operatives.

    The five-page document outlined the methods used and gave the names of those involved – informers and their police handlers – as well as their backgrounds.

    A senior national police official said he was “aware” of the scam, adding that some of those implicated had offered evidence in exchange for immunity from prosecution.

    He confirmed that spy bosses cited the need to pay sources as a reason for wanting more resources. “You can say, ‘There is a group I want to impress – I need a Gucci bag’, and you will get it. At times there isn’t a follow-up on whether there was any infiltration.”

    It is understood the money was shared among those who masterminded the scam.

    Brigadier Thulani Ngubane, North West police spokesman, said they were “not aware” of any abuse of the slush fund. The provincial commissioner would investigate and charge those implicated as he viewed the allegations “seriously”.

    While a report by other investigators has noted abuses of the fund under crime intelligence boss Richard Mdluli, who has been suspended, it is understood it has been abused for decades. Mdluli has denied any wrongdoing.

    June 14 2012 at 03:49pm

    PIET RAMPEDI

    Find this story at 14 June 2012 

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