New ArmorGroup Revelations: Fraud, Schemes, Prostitution

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RICHARD LARDNER | 09/10/09 08:52 PM | AP

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Attorney Debra S. Katz announces, left, a whistleblower retaliation lawsuit against ArmorGroup North America on behalf of her client former ArmorGroup North America Director of Operations James Gordon, not pictured, as attorney Janet L. Goldstein, center, and witness John Gorman, right, look on, Thursday, Sept. 10, 2009, at the National Press Club in Washington. Gordon filed the lawsuit charging that ArmorGroup management retaliated against him for whistleblowing, internally and to the United States Department of State, about illegalities committed by ArmorGroup in the performance of AGNA’s contracts with the United States to provide security services at the U.S. Embassy in Kabul, Afghanistan and at the U.S. Naval base in Bahrain. (AP Photo/Luis M. Alvarez)

WASHINGTON — Former managers for the security contractor protecting the U.S. Embassy in Afghanistan said Thursday the company lowballed its bid for the work and then outfitted a badly understaffed guard corps with second-rate gear.

The allegations come a week after an independent watchdog group said that the private guards in Kabul employed by ArmorGroup NorthAmerica were subjected to abuse and hazing by supervisors who engaged in sexual misconduct and lewd behavior.

James Gordon, former director of operations at ArmorGroup, and John Gorman, a former ArmorGroup manager in Kabul, told reporters they were forced out after trying to get the company to fix a long list of problems.

Gordon, who left ArmorGroup in February 2008, said he alerted the State Department to shortcomings in personnel, equipment and discipline that created security risks, but little changed.

In a whistleblower retaliation lawsuit filed Wednesday in federal court, Gordon said ArmorGroup withheld from Congress information about employees who went to brothels in Kabul known to house trafficked women.

ArmorGroup's "goal was to maximize their profits, provide a fig leaf of security at the embassy, and pray to God that nobody got killed," Gordon said.

ArmorGroup was awarded the $189 million embassy security contract in March 2007.

Susan Pitcher, a spokeswoman for Wackenhut Services, ArmorGroup's parent company, said Gordon resigned voluntarily and has been "threatening" a lawsuit since last year. A company review of Gordon's allegations found them to be baseless, she added.

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The State Department is investigating ArmorGroup's handling of the contract in the wake of the watchdog group's report of misconduct among the company's employees. The department is also examining conditions at the embassy and nearby Camp Sullivan, the offsite location where the ArmorGroup guards live.

At the same time, department officials have insisted that security at the Kabul embassy, one of the country's most important diplomatic outposts, hasn't been compromised.

The Sept. 1 report from the Project on Government Oversight included photos of guards and supervisors in various stages of nudity at parties flowing with alcohol. So far, 16 ArmorGroup employees have been fired or resigned and alcohol has been banned at Camp Sullivan.

State Department spokesman P.J. Crowley declined on Thursday to comment on Gordon's lawsuit. He said ArmorGroup has corrected problems the department identified in frequent reviews of the contract.

Gorman joined ArmorGroup in April 2007, shortly after it was awarded the Kabul embassy contract.

He said ArmorGroup misled the government by claiming experience and assets the company didn't have. To cut costs and keep profits up, ArmorGroup changed shift lengths for guards from eight to 12 hours and also cut the number of shifts from five to four.

He also said guards were not properly screened, and that this failure led to the misconduct.

Gorman said ArmorGroup dismissed him in June 2007.

Gordon spoke to reporters by telephone from Kabul, where he is employed by a security contractor he would not name.

He said the guard force in Kabul has been "chronically understaffed" because ArmorGroup refused to pay for more people.

Gordon also said that ArmorGroup's logistics manager used U.S. tax dollars to buy counterfeit North Face and Altoona jackets and boots for the guards from a company in Lebanon owned by the manager's wife.

And he described an episode in which the ArmorGroup employee responsible for maintaining the guards' weapons had to be forcibly removed from a brothel during work hours. Gordon said he tried to have the employee fired. That didn't happen, and Gordon said he later learned other ArmorGroup guards and supervisors also frequented brothels in Kabul.

__

On the Net:

U.S. Embassy Afghanistan: http://kabul.usembassy.gov/

(This version CORRECTS name of State Department spokesman P.J. Crowley.)

WASHINGTON — Former managers for the security contractor protecting the U.S. Embassy in Afghanistan said Thursday the company lowballed its bid for the work and then outfitted a badly understaff...
WASHINGTON — Former managers for the security contractor protecting the U.S. Embassy in Afghanistan said Thursday the company lowballed its bid for the work and then outfitted a badly understaff...
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- research I'm a Fan of research 251 fans permalink

Outlaw Mercenary armies.

    Favorite    Flag as abusive Posted 01:49 PM on 09/11/2009

Do you think Acorn should be handling our Censis reporting?

    Favorite    Flag as abusive Posted 01:41 PM on 09/11/2009
- research I'm a Fan of research 251 fans permalink

You want Blackwater to do it???

    Favorite    Flag as abusive Posted 03:02 PM on 09/13/2009

Spreading "American Values" around the world.

    Favorite    Flag as abusive Posted 10:56 AM on 09/11/2009
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Miliatry contractors are banging prostitutes over there so they won't have to bang them over here... or something like that.

    Favorite    Flag as abusive Posted 10:53 AM on 09/11/2009
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WTF has to happen before something is done about this kind of thing ??!?!?

    Favorite    Flag as abusive Posted 10:29 AM on 09/11/2009

Remember, the reason "they" don't like us is because of our way of life. And no wonder, if this is what "they" see us do overseas.

    Favorite    Flag as abusive Posted 09:44 AM on 09/11/2009
- DimBulb2 I'm a Fan of DimBulb2 151 fans permalink
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I shocked
shocked I say

round up the usual suspects

    Favorite    Flag as abusive Posted 01:26 AM on 09/11/2009
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Sad state of corporate 'share holder management' style putting profits before common sense.

They need to be held accountable to deter other losers like Wakenhut!

    Favorite    Flag as abusive Posted 11:42 PM on 09/10/2009
- Thabit I'm a Fan of Thabit 16 fans permalink

Mercenary= fighting prostitute so why should we be suprised when birds of a feather flock together

    Favorite    Flag as abusive Posted 11:17 PM on 09/10/2009
- JackNasty I'm a Fan of JackNasty 66 fans permalink
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Because prostitutes provide pleasure. Mercenaries...not so much.

    Favorite    Flag as abusive Posted 01:31 AM on 09/11/2009
- Uggg I'm a Fan of Uggg 26 fans permalink
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What ever happend to the U S Marine Corps guarding the Embassy's

    Favorite    Flag as abusive Posted 08:40 PM on 09/10/2009
- research I'm a Fan of research 251 fans permalink

no war profiteering.

    Favorite    Flag as abusive Posted 08:48 PM on 09/10/2009
- grf67 I'm a Fan of grf67 35 fans permalink

Why is the company's president not in jail?

    Favorite    Flag as abusive Posted 08:40 PM on 09/10/2009
- Moshe I'm a Fan of Moshe 188 fans permalink
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So where is the accountability?

    Favorite    Flag as abusive Posted 08:13 PM on 09/10/2009
- layman I'm a Fan of layman 21 fans permalink

Legacy from the Bush administration.

    Favorite    Flag as abusive Posted 07:59 PM on 09/10/2009
- Pilate I'm a Fan of Pilate 27 fans permalink
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Cronyism and no-bid contracts.

    Favorite    Flag as abusive Posted 10:53 AM on 09/11/2009
- Telemachus I'm a Fan of Telemachus 109 fans permalink

Sigh ... It's SO hard to find good Hessians these days.

    Favorite    Flag as abusive Posted 07:04 PM on 09/10/2009
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Prostitution?

ACORN out in Kabul also?

    Favorite    Flag as abusive Posted 07:01 PM on 09/10/2009

Give it up already

    Favorite    Flag as abusive Posted 07:30 PM on 09/10/2009
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