No Secret Profits for a Private Police Force?
by saramerica · April 23rd, 2008 · 3:12 pm · 6 Comments
Back when Rep. Chris Shay’s (CT-4) crush, Erik “Helluva Job!” Prince, the CEO of Blackwater USA testified before the House Oversight and Government Reform Committee, he refused to answer Rep. Chris Murphy’s (CT-5) questions regarding how much profit Blackwater makes off of government contracts. Upon discovering that the government often has no idea how much profit is being made off of no-bid government contracts, Murphy introduced H.R. 3928, the Government Funding Transparency Act of 2008, to require firms like Blackwater – that make more than 80% of their revenue from taxpayer dollars and who have contracts worth more than $25 million in any fiscal year - to disclose executive compensation, as with a publicly traded company.
Murphy secured key bipartisan support for his bill from Government Reform Committee Ranking Member Tom Davis of Virginia on the floor of the House today and Congressman John Duncan, a Republican from Tennessee, during a Subcommittee on Government Management, Organization, and Procurement hearing on his bill.
The disclosure would be required to be posted on an Office of Management and Budget (OMB) operated website – www.USAspending.gov – which was authorized as part of the Federal Funding Accountability and Transparency Act adopted in 2006.
According to the OMB-run website, the federal government has granted an increasing number of no-bid contracts. And yet, with such a substantial increase in government funding going to companies that win the funding through a no-bid process and are virtually subsidiaries of the United States government, very little is known about the private companies reaping the windfall.
Since 2001, Blackwater has had a meteoric rise in profits due to the hundreds of millions of dollars in government contracts, often won through no-bid processes. From 2001 through 2006, Blackwater contracts increased by 80,000%, from $736,906 in 2001 to $593,601,952 in 2006.
“Erik Prince, or anyone else, shouldn’t be making millions off of this war while our soldiers are fighting and dying and their families are just getting by,”
The above found [here]