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State Dept. Report Critical of Private Security Companies in Iraq

HeadlineOct 23, 2007

The New York Times is reporting a pair of new reports have delivered sharply critical judgments about the State Department’s performance in overseeing work done by private companies in Iraq and Afghanistan. A State Department review of its own security practices in Iraq assails the department for poor coordination, communication, oversight and accountability involving armed security companies like Blackwater USA and DynCorp. At the same time, a government audit expected to be released today says that records documenting the work of DynCorp are in such disarray that the department cannot say “specifically what it received” for most of the $1.2 billion it has paid the company since 2004 to train the police officers in Iraq. Meanwhile, Blackwater is also being accused of tax evasion. Congressman Henry Waxman said Blackwater USA violated tax laws and may have defrauded the government of millions of dollars by designating many of its employees as independent contractors instead of company personnel. Under U.S. law, companies must pay Social Security and other federal taxes on their employees, but not for independent contractors.

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