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Jeremy Scahill

Jeremy Scahill

Posted: March 2, 2009 12:34 PM

Mercenary King Erik Prince Resigns as Blackwater CEO


Originally posted at AlterNet.

The company formerly known as Blackwater continues its mission to bury its tarnished reputation and soldier on. Early this morning, Blackwater founder Erik Prince released a brief statement announcing he is stepping down as CEO of the infamous mercenary firm he started in 1997. A press release from the company -- which last month renamed itself "Xe" -- said Prince "will now focus his efforts on a private equity venture unrelated to the company."

In a personal message sent to his employees and clients, Prince sought to cast his departure as a natural part of the firm's ongoing evolution. "As many of you know, because we focus on continually improving our business that Xe is in the process of a comprehensive restructuring," he wrote. "It is with pride in our many accomplishments and confidence in Xe's future that I announce my resignation as the company's Chief Executive Officer."

Prince's resignation could be seen as a public formality in what has been a dramatic attempt to scrub all public vestiges of Blackwater, given that he remains chairman and sole owner of the network of companies now operating under the Xe umbrella. But it's clear the firm has been thrown into turmoil in recent months. As the Xe statement says, "These appointments follow the addition and departures of several other key personnel. Recent departures from the company include its former Vice Chairman, Chief Operating Officer, President, and Executive Vice President." Joseph Yorio, an ex-Army Special Forces officer and former Vice President of the international shipping company DHL was announced as the new Xe president -- a somewhat humorous development, given Prince's fondness for describing Blackwater as the "FedEx of the U.S. national security apparatus." Meanwhile, Danielle Esposito, a longtime Blackwater employee, was named Xe's new Chief Operating Officer and Executive Vice President.

The rebranding of Blackwater and its attempts to hide its former self have been downright crude. The company's domestic training centers, which some refer to as private military bases, are now simply labeled "U.S. Training Center." Gone is the sexy black-and-red logo featuring a bear paw in a sniper-scope; it has been replaced by a nondescript, rather amateurish sketch of an American Eagle. The company website has been revamped and scaled down.

One thing that does remain is the Blackwater ProShop, where you can still purchase items ranging from all the ammunition and tactical gear you would need for your own private war, to the ever-popular Blackwater teddy bear. There is currently a blow-out sale in Blackwater baby onesies, which have been reduced from $18 to $10. Toddler polos have also had their ticket price slashed.

Blackwater's new name and Prince's resignation come following the State Department's recent announcement that it would not be renewing Blackwater's security contract in Iraq. Some have speculated that many of its operatives may be rehired by the State Department through other companies or the Department itself. Moreover, Blackwater still holds lucrative government contracts in Afghanistan and elsewhere and is marketing "CIA-type services" to Fortune 1000 companies through Prince's Total Intelligence Solutions. And a 184-foot vessel operated by the company (named the MacArthur) is reportedly heading for the Gulf of Aden to fight pirates. Nevertheless, some see the recent developments as Blackwater's funeral.

Still, the company clearly remains concerned with activist campaigns against the "new" company and is taking the necessary precautions. In April 2008, almost a year before "Xe" was officially launched, Blackwater bought the URLs xewatch.com, .org and .net. But activists who have mobilized against Blackwater have launched a rebranding campaign of their own. While Blackwater beat them in the URL game, the folks at BlackwaterWatch.net -- whose homepage currently reads: "DON'T BE FOOLED -- XE IS Blackwater!" -- recently reaffirmed their activism, sending out an e-mail saying:

"Xe Watch (formerly Blackwater Watch) was formed in 2007 as a spin-off of North Carolina Stop Torture Now. Headquartered in Blackwater's home state of North Carolina, Xe Watch seeks to shine a light on Blackwater USA specifically, and private armies/mercenaries generally, with respect to their human rights violations, absence of accountability and their profiteering at the expense of, and lobbying for, war and conflict. Xe Watch represents a growing contingent of concerned individuals and groups including, but not limited to, human rights and peace activists, people of faith, civil libertarians, and veterans. We are in solidarity with the people in San Diego, California, Mount Carroll, Illinois and Coeur d' Alene, Idaho who are fighting Xe's mercurial growth and expansion."


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Norge
Rolf K. Artist, worker of metal, writer of poems
10:05 AM on 03/04/2009
Fine information and it will be passed along.

Thanks
11:17 PM on 03/02/2009
He's made is gaziillions off the blood of our soldiers - of course he is stepping down.
11:11 PM on 03/02/2009
Awwww, poor guy. What's to become of him (besides jetting off to the Caribbean to check on the billions he extracted from the U.S. government over the last 6 or 7 years in his offshore bank accounts, that is...).
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Marichu
My micro-bio did not meet HP guidelines
10:53 PM on 03/02/2009
It makes perfect sense to step down now. He doesn't have GWB funneling millions of dollars into his corporation and his pocket. He got what he wanted.
10:47 PM on 03/02/2009
I didn't see the statement where he said that he divested himself of all ownership in the new company. If this didn't happen, then guess who's still the puppet master pulling the strings.
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HUFFPOST SUPER USER
robeson
10:05 PM on 03/02/2009
Prince says he will return to the Eagles Nest to recuperate.
HUFFPOST PUNDIT
senorlou
yep.
10:04 PM on 03/02/2009
Every day, there is bad news, and good news. This was very good news. Blackwater/ Xe is possibly the most evil and corrupt corporation the world has ever seen. I could be wrong about this, but any mercinary army is probably the same exact way. I can't imagine what would cause a human being to want to join one of these armies. Money, right? Talk about making a deal with the devil.
09:47 PM on 03/02/2009
What century is this anyway?? Imperialist mercenary thugs.
09:34 PM on 03/02/2009
HE needs to stand before world courts for the actions of his company.
HUFFPOST SUPER USER
MANK
09:11 PM on 03/02/2009
MSNBC is looking for a show for its 10 pm slot. How about an hour a night by a well respected newsperson investigating all the aspects of the Bush 8 years and how it impacted on the American way of life?
HUFFPOST PUNDIT
senorlou
yep.
10:05 PM on 03/02/2009
Sounds about perfect to me.
08:47 PM on 03/02/2009
He should be sent to prison.
09:23 PM on 03/02/2009
Amen
09:59 PM on 03/02/2009
Absolutely!!
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SgtMac
Hail Azathoth!
08:42 PM on 03/02/2009
When I was in Iraq (2004-2005) I quickly discovered that these corporate mercenaries were undisciplined cowboys who were accountable to no one. That and they were being paid about 6 times what I made as an Army Staff Sergeant, for doing the same work. But I guess those Bush presidential campaign contributions needed to be repaid with interest.
HUFFPOST SUPER USER
MANK
09:02 PM on 03/02/2009
This is why I just don't get the military support of Bush and his cronies. When he appeared with the military it was like Eisenhower arriving on the scene.
HUFFPOST PUNDIT
senorlou
yep.
10:06 PM on 03/02/2009
Well, some of them were brainwashed, I'm sure. But look, we've got Sgt. Mac on our side. I don't think anybody suffered more under W. than the US military - except for the Iraqi and Afghan people, of course. And everybody in Detroit.
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SgtMac
Hail Azathoth!
10:41 PM on 03/02/2009
Most career military people are politically and socially conservative, that's simply what the institutional culture is. Many aren't that tuned into politics, but those that are tend to fall into the cult of Reagan. That being said, I should point out that when I enlisted, and reenlisted several times, no one ever asked me what my political affiliation or ideology was. Nor did anyone ever order me how to vote. However, given the conservative institutional culture, military people predominately support republican politicians, regardless of who that politician is.
When I was in Iraq, only 2 guys in my Cavalry platoon of 24 were democrats, or atheists. I was one of these. So while I didn't get any official harassment about my outlook, we did have some spirited discussions. My Lieutenant once asked "Sgt Mac, as an atheist, what if you get killed over here?" I told him I'd convert to Islam on the spot. So while my views were not popular, they did not detract from the professional respect I was accorded.
08:32 PM on 03/02/2009
Who knows what the purpose of Blackwater was? Parallel Army perhaps? It was irresponsible and dangerous to arm and fund a group like this in the United States. They've probably socked away all of those billions that were "lost" in Iraq. They've built one of the largest embassies in the world in Iraq. Why?? These were our tax dollars people.
Millions of dollars in American cash was bundled and shipped over there by the government, supposedly to pay off Iraqi informants, etc. This information was not a secret. Since when did the American government operate like that, and why didn't the media cover this more thoroughly? There will be much blame to go around when the truth is uncovered about Blackwater and the mercenaries funded by the Cheney/Bush Administration.
They planned to still be in power. They thought once they insinuated Hillary into running, they could easily beat her. They didn't count on the complete incompetence of Bush, and that the American people would have a different idea.
07:32 PM on 03/02/2009
Blackwater/Prince + Amway + Fundamentalist Religious Right = American Fascism.
09:15 PM on 03/02/2009
You square by war profiteering.
10:03 PM on 03/02/2009
So true!
07:27 PM on 03/02/2009
He might as well resign as the CEO of the company HE founded. Without the contract with the State Department in Iraq, things are going to go down the tubes for the company formerly known as Blackwater.