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Private Firms Undermine U.S. Occupation of Iraq

by Gerry Foley  / November 2007 issue of Socialist Action newspaper

 

 

Despite the high-level political connections of the mercenary organization Blackwater, the scandals about its recklessness and ruthlessness in Iraq are expanding. And they are increasingly being reinforced by new scandals about other big corporations’ undermining the U.S. occupation by unrestrained pursuit of private profit.

 

The latest are the revelations about Dyncorps, the company entrusted with the training of the Iraqi police, one of the Iraqi security forces that are supposed ultimately  to achieve the U.S. aims in Iraq and allow the scaling down of the U.S. military operation.

 

The BBC website reported Oct. 23: "The US government audit, due to be released in Washington, says the State Department cannot say 'specifically what it received' for most of the money paid to DynCorp, the largest single contractor to the department."

 

Even the chairman of the Senate Homeland Security Committee, nominally a Democrat but an ardent supporter of Bush's policy in Iraq, expressed uneasiness. The BBC noted:

 

"Senator Joe Lieberman ... said it could take the State Department up to five years to review invoices and demand repayment from DynCorp for unjustified expenses. 'This scenario is far too frequent across the federal government,' he said."

 

These multiplying scandals and the chaos they reflect are evidence that the capitalist counteroffensive against all the social gains of the last 150 years has reached the point where it is undermining the general policy goals of the capitalist class as a whole.

 

The "economic royalists" have pushed "privatization" to the point of reviving evils characteristic of the first phase of capitalist development, in which the basic needs of social cohesion, vital even for the capitalist economy, were ignored. For the privatizers, there is no such thing as society—only the market.

 

The result is that the socially blind pursuit of profit by the monster corporations is threatening the political goals of the capitalist class as a whole.  In fact, this was the same problem that motivated the capitalist rulers to enact the first progressive social legislation in England. It was not because of the pressure of any movement representing the masses—the victims of the savage early capitalism—but the capitalists themselves, who feared that they were destroying the base of their economic development.

 

This lesson has apparently been forgotten by the ideologues singing the war songs of the capitalist offensive. Their actions are symptomatic of a decadent capitalist class that stubbornly ignores that interests of society and gives no thought to the future.

 

And the obvious implication of it is that the defeat of the U.S. effort in Iraq will be a disaster for the entire worldwide capitalist offensive that has been going on for the last 30 years, and one that is not limited to the capitalist powers that committed themselves to the Iraq war and occupation.

 

Reporting on a congressional investigation of Blackwater's operations in Iraq, an article in the Oct. 2 New York Times noted that the company had tried to cover its outrages by paying off the victim's families, a capitalist-type calculation that left out the social aspect: "In at least two cases, Blackwater paid victims’ family members who complained, and sought to cover up other episodes, the Congressional report said. It said State Department officials approved the payments in the hope of keeping the shootings quiet.

 

“In one case last year, the department helped Blackwater spirit an employee out of Iraq less than 36 hours after the employee, while drunk, killed a bodyguard for one of Iraq’s two vice presidents on Christmas Eve."

 

After the Blackwater massacre in Nissour Square, Baghdad, on Sept. 16, the U.S. government itself took the lead in trying to pay off the victims' families and supporters, but seems to have succeeded only in embittering them, according to an account in the Oct.

25 Christian Science Monitor: "Mohammed Hafidh says he refused to accept an envelope filled with $12,500 in cash from Patricia Butenis, deputy chief of mission at the US Embassy in Baghdad, as compensation for the death of his 10-year-old son, Ali.

 

"'I told her that I want the courts to have their say,' says Mr. Hafidh, whose son was among 17 Iraqi civilians killed in a Sept. 16 shooting involving Blackwater USA security guards. ....

 

“Haythem al-Rubaie, who lost his son and wife in the same shooting, says he won't even meet with Ms. Butenis, who offered cash compensation on Wednesday to seven of the victims' families, including Hafidh.”

 

Blackwater even put profit ahead of the security of its mercenary soldiers. 'The Sept. 28 Washington Post summarized a report by the House Committee on Oversight and Government Reform. It began by noting:

 

"The private security firm Blackwater USA brushed aside warnings from another security firm and focused on cost, not safety, before it sent its personnel to escort trucks to Fallujah in 2004, resulting in four American deaths that marked a major turning point in the war. ..."

 

The article continued: "For example, the assessment said that Blackwater, then operating under a Defense Department contract, was supposed to use vehicles with armored protection kits, but as of the date of the killings, no such vehicles had been obtained. A Blackwater internal report obtained by the committee quoted an employee who said the contract ’paid for armor vehicles’ but that ’management in North Carolina … made the decision to go with soft skin due to cost.’

 

“The report disclosed that another complicating factor was a contract dispute with a different company. The report suggested that Blackwater never intended to armor its own vehicles. Instead, Blackwater employees were told to ‘string along’ the other company in hopes of forcing them out of their contract or giving them ’no choice but to buy us armored cars,’ according to interviews by the committee staff with Blackwater officials." This cutthroat competition is another aspect of the pursuit of private profit.

 

Even the political representatives of the capitalist class, the House Committee members, were forced to draw the conclusion: "These actions raise serious questions about the consequences of engaging private, for-profit entities to engage in essentially military operations in a war zone."

 

However, the pursuit of private profit is not limited to private companies. The military itself is being hit by corruption scandals involving billions of dollars. The New York Times reported Sept. 24: “The accusations against Major Cockerham are tied to a crisis of corruption inside the behemoth bureaucracy that sustains America’s troops. Pentagon officials are investigating some $6 billion in military contracts, most covering supplies as varied as bottled water, tents and latrines for troops in Kuwait, Iraq and Afghanistan.

 

“The inquiries have resulted in charges against at least 29 civilians and soldiers, more than 75 other criminal investigations and the suicides of at least two officers.”

 

It seems that "the market" is at least as big a threat to the U.S. operation in Iraq as the armed resistance.

 

Human Needs, Not Profits!