!! History Commons Alert, Exciting News

Follow Us!

We are planning some big changes! Please follow us to stay updated and be part of our community.

Twitter Facebook

Iraq under US Occupation

Custer Battles

Project: Iraq Under US Occupation
Open-Content project managed by AJB, KJF, mtuck

add event | references

US military Central Command (CENTCOM) commander General Tommy Franks issues an order formally recognizing the creation of the Coalition Provisional Authority (CPA - see January 2003), an ad hoc, improvised organization to be headed by former diplomat and business executive L. Paul Bremer. A 2006 report by the Special Inspector General for Iraq Reconstruction will call the CPA the “de facto government of Iraq.” But for all its power, its legal status will remain unclear throughout its existence. A 2005 Congressional report will note: “Whether the CPA was a federal agency was unclear. Competing explanations for how it was established contribute to the uncertainty.… Some executive branch documents supported the notion that it was created by the president, possibly as a result of a National Security Presidential Directive. This document, if it exists, has not been made available.” Whether the legal ambiguity is deliberate is unclear, but it will be exploited. The Defense Department will not allow federal auditors to investigate CPA spending because, the department says, it is not a federal agency. Contractors are warned that if the CPA breaks contracts, they might not have recourse in federal courts. Employees who suspect contractor fraud are told they cannot pursue any possible criminal actions under American law. [Roberts, 2008, pp. 127]

Entity Tags: Office of the Special Inspector General for Iraq Reconstruction, Coalition Provisional Authority, US Central Command, US Department of Defense, Thomas Franks, L. Paul Bremer

Category Tags: Custer Battles, Economic Reconstruction, Political Administration, Security

CPA Officials Posing with $2 Million in CashCPA Officials Posing with $2 Million in Cash [Source: US Congress. House Committee on Government Reform] (click image to enlarge)The Coalition Provisional Authority (CPA) awards a $16.84 million sole-source contract to a small McLean, VA -based firm called Custer Battles to provide security at Baghdad International Airport (BIAP). It will later be alleged by former employees of the firm that Custer Battles bilked the CPA by diverting airport personnel to other jobs. An investigation by the Washington Monthly will later discover that the company had very few qualifications for the job and managed the contract in an extremely disorganized manner. One witness describes how the CPA paid the company with a wheelbarrow filled with $2 million in cash. Colonel Richard Ballard, an inspector general for the coalition forces, becomes extremely dismayed with the company’s conduct after examining its performance. His investigation is continuously obstructed by the company which argues that it has no legal obligation to cooperate because it is being paid with Iraqi assets and not money from the Pentagon. He discovers that employees often possess inadequate equipment and training. He is especially appalled by the employees’ “refusal to open the cargo doors of lorries to inspect.” Ballard makes known his concern that the CPA has exercised inadequate oversight of the contract and writes that a “formal audit would likely conclude fraud and potentially gross negligence in the area of contract oversight.” [Special Inspector General for Iraq Reconstruction, 7/30/2004, pp. 50 pdf file; Washington Monthly, 7/2006]

Entity Tags: Coalition Provisional Authority, Custer Battles, LLC

Category Tags: Security, Custer Battles

Custer Battles is awarded a “cost plus” contract in Iraq to provide security and logistical support for the Iraqi Currency Exchange, a CPA-created agency charged with replacing the country’s old currency with a new currency. Under the terms of the contract, Custer Battles is to be paid for all of its operational expenses, plus a 25 percent markup for overhead and profit. According to a lawsuit that is later filed against the company, Custer Battles uses a complex network of shell companies to inflate the fee it gets to over 60 percent of its actual costs. In one notorious incident, the company bills the CPA for the use of at least one forklift that it does not even own. The forklift belonged to Iraqi Airways and was confiscated by Custer Battles employees. Paint was used to cover up the Iraqi Airways insignia on the machine. [Special Inspector General for Iraq Reconstruction, 7/30/2004, pp. 79 pdf file; Grayson and DiMuro, 8/26/2004, pp. 3, 15-17, 21 pdf file]

Entity Tags: Custer Battles, LLC, Iraqi Currency Exchange

Category Tags: Security, Custer Battles

It is reported that over 1,000 civilian private contractors have died in Iraq and Afghanistan since the start of hostilities in those countries. An additional 13,000 have been wounded. The casualty figures come from the Department of Labor. Civilians work in a number of areas in Iraq, from providing security and servicing weapons systems, to more mundane tasks such as logistics, construction, truck driving, and maintenance (see April 4, 2007). [Reuters, 3/7/2004] Roughly one contractor dies for every four members of the armed forces. But despite the risks, Americans are lining up for jobs in the two war zones, lured by the prospects of high pay and, for some, adventure. As of the end of April 2007, 224 of the killed contractors were US citizens. [Reuters, 3/7/2004]

Entity Tags: Blackwater USA, Aegis Defence Services, Vinnell Corporation, US Department of Labor

Category Tags: Bechtel, Blackwater USA, Custer Battles, Halliburton, Military Privatization

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike