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Ever heard of a private security contractor name Paravant? XPG? No? Well, that's just as Blackwater, the parent company of Paravant, XPG and dozens of other "subsidiaries", would have it. As a former Paravant Vice President noted in Senate hearings earlier this year, Paravant and Blackwater were "one and the same," with Paravant created in 2008 to put aside Blackwater's "baggage". But then again, we probably shouldn't be calling Blackwater Blackwater, since the company itself changed its name to Xe in 2007, hoping to get a fresh start in the race for wartime contracts from the U.S. government.

The New York Times reported last week the story of Blackwater and its "web of more than 30 shell companies," and this is not just a case of corporate rebranding on steroids. Blackwater's machinations and continued battlefield presence have been made possible by systemic changes such as a sharp decline in government's ability to oversee the work and even functions that have been increasingly outsourced to private companies. These changes are part of a new system of power and influence that made its debut after the Cold War's end. At the pinnacle of this system is the "shadow elite". That's the title of Janine's book in which she identifies a new breed of power broker who bend the rules and play with their identities to best press their own agenda. They shuttle back and forth among roles of power in official and private organizations, gaining and hoarding vital information at each stop to serve their own, not their organizations', interests. And they take advantage of the ambiguity at the murky spaces where state and private power meet, because with ambiguity comes a crucial asset: deniability.

Blackwater creates deniability in (at least) five ways. First, there's the obfuscation created by the shell companies themselves. Once the name "Blackwater" became radioactive, the company, like the most nimble players of the shadow elite era, recrafted its image and corporate structure, if not its practices, to achieve the same old agenda. Blackwater could continue to peddle its services through those subsidiaries.

Second there's the ambiguity of purpose of government officials - and the deniability that it lends them. As the Times puts it:

Army officials said [during a Senate hearing earlier this year] that when they awarded the contract to [shell company] Paravant for training of the Afghan Army, they had no idea that the business was part of Blackwater.
There's no apparent reason to doubt those Army officials, but is that true for all of the contracts secured by Blackwater's renamed units? It's not hard to imagine the benefits of deniability to government officials who might want to use Blackwater's services, but are wary of the public relations toxicity. They can say they just didn't know they were dealing with Blackwater.

Third, there's the deniability implicit in hiring foreign contractors to perform sensitive and dangerous U.S. work. An internal email obtained by the Times shows just how much Blackwater tries to market this kind of deniability. A Blackwater executive actually uses the word in describing why the government, in this case the Drug Enforcement Administration, might be interested in the services of a private spy network set up by Blackwater. Blackwater official Enrique Prado is quoted as writing, "these are all foreign nationals...so deniability is built in and should be a big plus." (It's worth noting that Prado, in true shadow elite fashion, brought government experience to his work at Blackwater - he's "a former top CIA official," according to the Times.)

Fourth, Blackwater benefits from the deniability that comes when the mechanisms of government oversight have broken down, and chains of command are hard to discern, the systemic nature of which Janine explains in a new report, Selling Out Uncle Sam: How the Myth of Small Government Undermines National Security. Take the case of the deadly incident that was the focus of those Senate hearings - by the Armed Services Committee - mentioned above. The Times refers to the 2009 incident, in which two Paravant workers fired their weapons and killed two Afghan civilians, and a read of the Senate hearings shows how tangled the lines of authority apparently were. From the Committee Chairman, Sen. Carl Levin (D-Mich.):

Army contracting personnel .... said that one way they monitored the contractor's performance was from their office in Florida, and that was by checking in with Colonel Wakefield ... in Kabul. However, Colonel Wakefield .... told the committee that Task Force (TF) Phoenix, a subordinate command, had oversight responsibility. Even after the May 2009 incident, a review of policies at Camp Alamo uncovered continuing 'uncertainty' as to what 'authorities and responsibilities are over contractors,' including 'disciplinary issues'.

Who do you blame when no one can pin down who was really responsible in the first place?

Add to the confusion the fifth opportunity for deniability: in the case of the Paravant deal (and countless others throughout the contracting universe), this contract was actually a subcontract - with another defense firm, Raytheon. As seen in the Senate hearings, teasing out what Raytheon's oversight role exactly was is no simple task. Again, ambiguity makes accountability a near impossibility.

Ambiguity is not an accident. As Janine writes in Shadow Elite, ambiguity is a key feature of the new system of power and influence, and it serves power brokers an important function. They can play different sets of constraints off each other, skirting accountability in one venue by claiming they were operating in another. They need not necessarily break the rules; they merely shift around them. Ambiguity is what affords actors deniability: while advancing their own agendas, they agilely defy scrutiny and public accountability.

The Times quotes Rep. Jan Schakowsky, an Illinois Democrat, who doesn't understand why the government keeps giving Blackwater work:

I am continually and increasingly mystified by this relationship.....to engage with a company that is such a chronic, repeat offender, it's reckless.

Reckless, yes, but to our eyes, not surprising.

One of the more infuriating aspects of the shadow elite is the ability to seize new opportunities, fresh deals, no matter how egregious the track record. The overarching reason is that those on the other side of the deal are getting something too. In Blackwater's case, the government wants some of the dangerous and dirty work of war carried out by hired guns, not uniformed U.S. forces. And they apparently want to maintain the ability to point the finger elsewhere when, as was the case that night of May 5, 2009 on Jalalabad Road in Kabul, things go horribly wrong.


 
 
 

Follow Janine R. Wedel on Twitter: www.twitter.com/profjanine

 
 
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HUFFPOST SUPER USER
Trebor Notsgnivil
I'm about serving the poor. Watch out, rich!
08:05 PM on 09/10/2010
Hey look, the USA is creating a vicious mercenary army that answers to no one! Now we know who The Enemy will be one day. But don't worry, the rightwing nutjobs with their 2nd Amendment popguns will protect us. Or maybe they will be on the mercenaries' side.

Civil war, anyone?
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lesterbud
Facts ARE Liberty
10:14 AM on 09/10/2010
Gee Whiz Folks....
Why do you think we have wars?
It is because during wars, especially the fraudulently concocted ones we now enjoy, the doors to the vault are flung open and anyone with the nads to make up a reason can walk in and help themselves to as much cash as they want. This is how people in power reward those who got them there. In the Bush case - completely off the books, not mentioned in any budget or accounted for in the deficit. In the Obama case, an overwhelming wall of entrenched power that can defy any controls.

The tragedy, of course, is that our brave, loyal and underpaid troops are sent to be killed in wars that will be extended as far as possible by those making vast fortunes from them. And they come home to no health care, no support, and no jobs.
Meanwhile, the Blackwater and Halliburton execs live like sultans and even their hired guns are set for life.
This is one very screwed up mess.
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babybuda
Tolling for the outcast....
09:14 AM on 09/10/2010
"There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know."
Donald Rumsfeld

He left out there are things we know and don't want you to know, and we will do everything we can to hide it and deny it.
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HUFFPOST SUPER USER
Carl Caroli
Give peace a chance
08:49 AM on 09/10/2010
This nonsense needs to stop. We do not need mercenaries. We do not need zealots and we certainly don't need our government shuffling the deck to confuse us.
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09:03 AM on 09/10/2010
You are right. It cheapens the honor of our servicemen and if the do something unethical our troops get the blame....I don't like the idea that they get 3 x more money than our troops and what do our troops come home too? not nearly enough of what these private militias get...its not fair.
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babybuda
Tolling for the outcast....
08:43 AM on 09/10/2010
Our tax dollars hard at work. I am glad we stopped Acorn and their nefarious ways though I now sleep better knowing that likes of Andrew Breightbart are looking out for us.
06:18 AM on 09/10/2010
What happens when private contractors like Blackwater constitute the bulk of our combat forces...and we are no longer the highest bidder? Machiavelli way back in 1513 warned against the use of mercenaries. We used to have an iron clad law in this country that said no non-US company could obtain sensitive, classified or top secret contracts. XE/Blackwater has moved their corporate headquarters to the UAE. Halliburton is now run from Dubai. I think all subcontracting should be done away with, including the feeding and logistics. History shows that those unglamorous components of war are crucial to victory. We have created a monster...again.
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HUFFPOST SUPER USER
bccmeteorites
Don't believe everything NASA says.
03:24 AM on 09/10/2010
Shadow elite at work mesmerizing public into political inaction? It's simply run out of ideas. I guess challenging the fixtures of corruption, influence peddling, extortion and bribery is uhm too challenging.

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02:46 AM on 09/10/2010
Here's the sad part. Will the Obama administration investigate or prosecute anything, ever? Wall ST, defense contractors, crimes of the W administration, lobbyist corruption?  Of course not.  Eric Holder is apparently hanging out in the deep freeze enjoying some delicious ice cream-related dessert treats. But if the Repubs win the House, it will be all investigation all the time, centered around whether Holder paid full price for an orange push-up. Gripping TV!
02:36 AM on 09/10/2010
This approach is not exactly new.

The UK Blair/Brown government threw out all capable people and installed consultants for the same reason. No matter that it almost doubled the cost of the government itself, it provided deniability ("it wasn't me"), plausibility ("the 'independent' consultant said so - because we told him what to say") and a way to convert tax money into pocket filling (guess where these people go after their term?).

A classic example of that was the UK ID card debacle - it is clear that the feasibility study was anything but unbiased as the same setup got the job afterwards (and, given the lack of take-up, not based on facts). The people on the job got to sit around a lot - at a huge cost per week to the unwilling tax payer.

"Ah", you say, "but they have an audit office! Surely they would spot such abuse?" Well, no. The first thing the consultants did was replace the top with one of their own. Problem fixed, snout back in the trough..

Blackwater just does it with guns, the underlying principle is the same. "It wasn't me". As long as voters and politicians do not insist on clear lines of responsibility you will not clean this up - ditto for the finance world. Only personal responsibility makes people responsible. Simple.
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HUFFPOST SUPER USER
mtracy9
02:36 AM on 09/10/2010
"It's called in the intelligence lexicon, 'plausible deniability.' If they [CIA hired guns] perform actions that might embarrass the United States government, they can be denied [as being under the control of the government]." --William Leary, Merton Coulter Professor of History and winner of the Central Intelligence Agency's Studies in Intelligence Award, interviewed in the documentary, Air America: The CIA's Secret Airline
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09:24 AM on 09/10/2010
but whats gives anyone the right to act without impunity...if I do something wrong I am punished...If someone lie and said I did something wrong, I am punished...who will hold these people accountability..aren't we living in a democracy?
12:00 AM on 09/10/2010
How come we never hear anything more about Jeremy Scahill's story that Blackwater built a complete replica of CIA headquarters for their intelligence service in Georgia?
11:34 PM on 09/09/2010
Outsourcing should be limited to "personell" security details only
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HUFFPOST SUPER USER
Michmod
Made in Detroit.
10:42 PM on 09/09/2010
I have mixed feelings about this. I absolutely believe Blackwater should be blacklisted and the whole outsourcing of the military, done for profiteering and to make the war "painless" for Americans by avoiding a draft needs the scrutiny of a Congressional investigation. But, at the same time, you can't just put the kaput on it. They feed and supply the troops. They are so ingrained into the basic operations in both wars what can be done short term? A mess. No two ways about it. I hope we've learned a lesson.
11:12 PM on 09/09/2010
Feed and supply yes, but contractors increasingly are taking up active combat type rolls even if no one is willing to say those words in public. I believe there were a few stories ~ 6 or 8 months ago about private security firms actively participating in raids along side spec ops, and CIA personnel. So the contracting thing has moved beyond legit support/logistics and effectively into combat. The end result is that they will operate outside the military rules of engagement and outside of any command structure that can enforce accountability.
http://www.nytimes.com/2009/12/11/us/politics/11blackwater.html?scp=1&sq=blackwater%20cia&st=cse
12:02 AM on 09/10/2010
Blackwater doesn't "feed" the troops. Halliburton is not Blackwater. Halliburton doesn't do security services or assassinations or torture or covert black-ops or surveillance.

Halliburton is malignant. Blackwater is ultramalignant.
01:15 AM on 09/10/2010
You need to read the book "Confessions of an Economic Hitman" The "classified" nature of everything the CIA and government does behind our backs is for a reason.- They don't want us to know the truth. "Just give us money- don't ask questions, we'll keep you secure." Same old rhetoric from these crooks in DC. This is their excuse to tax us hundreds of billions of our hard earned money every year. So they can manipulate the world economy for the benefit of the corporations and drug cartels, that they control! We need to stand up and stop the madness. Why are we training our sons to be killers? Why is our country so obsessed with killing and being in control and the "leader" in the world. It sure as hell doesn't help me pay my bills or keep me safe. They are stealing us blind America. Where have the trillions gone? I say the people that are for the war should be the ones to foot the bill, and those of us that believe in peace and harmony among all our brothers, shouldn't have to. If we are a nation based on God's law, why are we running around the world killing innocents so the corporations can steal their resources to obtain power. The day of reckoning is going to come, it's karma, you get back what you put out.
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09:27 AM on 09/10/2010
my fear is WHEN WILL THESE CORPORATE MILITIAS TURN ON THE US ? plutocracy, oligarcy, kleptocracy is the order of the day...its possible.
10:32 PM on 09/09/2010
When a county's people do not want to send their young people to war and those young people do not want to go. that should be that. No military. But not us, not the United States of Corporate Greed. Not only do we pay these non military killers more than our troops but they have no accountablility. Then our government hires killers from all over the world and gives them American citizenship for serving in the military. It just burns me up when the brag about meeting their quota as though American kids or signing up left and right. I guess we now have an unwanted global military to go along with our unwanted globalization.
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09:28 AM on 09/10/2010
these hired guns can very well turn on us...
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lesterbud
Facts ARE Liberty
10:16 AM on 09/10/2010
Well stated Shortyfuse.
F'd