[lbo-talk] Corporate Contracts In Iraq: A Breakdown

Dwayne Monroe idoru345 at yahoo.com
Mon Aug 25 11:39:29 PDT 2003


The Real Winners

A rogue's gallery of war profiteers.

BY TODD TAVARES

ART BY NICK THORKELSON

Even as bombs were raining down on Baghdad, a short list of private beneficiaries was being drawn up behind closed doors. As the invasion entered its final phase, the United States Agency for International Development (USAID) and the Army Corps of Engineers (funded through the Pentagon) began doling out contracts. Citing security concerns and time constraints, they hand picked the companies that would be allowed to bid for the contracts (American firms only, thank you), and in some cases they awarded colossal sums with no bidding at all.

USAID, whose mission is to further "America�s foreign policy interests in expanding democracy and free markets while improving the lives of the citizens of the developing world," invited 21 firms to bid on eight contracts worth $1.7 billion. Many of the contract details have not been revealed to American taxpayers or the Iraqi people. A look at the past records of the companies that received contracts reveals that most have long histories of project work with USAID, specialize in privatization, and maintain strong political connections. These are the firms that benefited most from the reconstruction largesse. In fact, they may be the war�s real winners.

Where two figures are given for award amount, the low number is money allocated to begin work and the high number is the estimated final cost.

STEVEDORING SERVICES OF AMERICA (SSA)

Seattle-based private operator of port facilities.

Awarded: $4.8 million (initially)

For: Seaport Administration (to assess Umm Qasr port facilities; develop improvement plan; hire port pilots; facilitate cargo-handling services; coordinate transport shipments from Umm Qasr)

Stevedoring Services of America is the largest marine and rail-cargo handler in the United States and the largest terminal operator in the world, with annual revenue of $1 billion. A notorious union-buster, SSA is the dominant member of the Pacific Maritime Association (PMA), the stevedoring trade association responsible for paying longshore workers. Joseph Miniace, the PMA president alleged to have been installed by SSA, worked for years to break union power by outsourcing and automating the ports. It was the International Longshore and Warehouse Union�s (ILWU) effort to resist his changes and maintain full unionization that prompted the PMA to lock out port workers in September 2002.

After USAID gave SSA the Iraq contract, its security office discovered that the firm did not have the necessary security clearance. Instead of revoking the contract and awarding it to a company with the correct clearance credentials, USAID waived the requirement.

[...]

full at

http://www.dollarsandsense.org/0703tavares.html

DRM

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