Blackwater: The Rise of the World's Most Powerful Mercenary Army

by Jeremy Scahill

  This logic is encouraged not only by the virtual immunity already extended to contractors but also by the Pentagon’s failure to oversee this massive private force that is now officially recognized as part of the U.S. war machine. Private contractors largely operate in a legal gray zone that leaves the door for abuses wide open. In late 2006, a one-line amendment was quietly slipped into Congress’s massive 2007 defense-spending bill, signed by President Bush, that could subject contractors in war zones to the Pentagon’s UCMJ, also known as the court martial system.16 But the military has enough trouble policing its own massive force and could scarcely be expected to effectively monitor an additional 100,000 private personnel. While the five-word insert hardly establishes a system of independent oversight, experts still predict it will be fiercely resisted by the private war industry. Despite the unprecedented reliance on contractors deployed in Iraq, Afghanistan, and elsewhere, the government has failed to even count them, let alone police them. A Government Accountability Office report released in December 2006 found that the military had no effective system of oversight and that “officials were unable to determine how many contractors were deployed to bases in Iraq.”17 The Army and Air Force were unable to provide the GAO investigators “the number of contractors they were using at deployed locations or the services those contractors were providing to U.S. forces.” The GAO concluded “problems with management and oversight of contractors have negatively impacted military operations and unit morale and hindered DOD’s ability to obtain reasonable assurance that contractors are effectively meeting their contract requirements in the most cost-efficient manner.”

  A week after Donald Rumsfeld’s rule at the Pentagon ended, U.S. forces had been stretched so thin by the war on terror that former Secretary of State Gen. Colin Powell declared “the active Army is about broken.”18 Rather than rethinking such aggressive policies and wars of conquest, the Bush administration and the Pentagon talked of the need to expand the size of the military. Prince had already offered up a proposal of his own: the creation of what he called a “contractor brigade” to supplement the conventional U.S. military. “There’s consternation in the DoD about increasing the permanent size of the Army,” he said. “We want to add 30,000 people, and they talked about costs of anywhere from $3.6 billion to $4 billion to do that. Well, by my math, that comes out to about $135,000 per soldier. . . . We could do it certainly cheaper.”19 It was an extraordinary declaration that could only come from a man in control of his own army. Prince likes to position Blackwater as a patriotic extension of the U.S. military, and in September 2005 he issued a company-wide memorandum requiring all company employees and contractors to swear the same oath of loyalty to the U.S. Constitution as Blackwater’s “National Security-related clients (i.e. Pentagon, State Department and intelligence agencies)” to “support and defend the Constitution of the United States against all enemies, foreign and domestic. . . . So help me God.”20

  But despite the portrayal of Blackwater as an all-American operation seeking to defend the defenseless, some of its most ambitious and secretive projects reveal a very different and frightening reality. In May 2004, Blackwater quietly registered a new division, Greystone Limited, in the U.S. government’s Central Contracting office. But instead of incorporating the company in North Carolina or Virginia or Delaware, like Blackwater’s other divisions, Greystone was registered offshore in the Caribbean island-nation of Barbados. It was duly classified by the U.S. government as a “tax-exempt” “corporate entity.”21 Greystone’s promotional literature offered prospective clients “Proactive Engagement Teams” that could be hired “to meet emergent or existing security requirements for client needs overseas. Our teams are ready to conduct stabilization efforts, asset protection and recovery, and emergency personnel withdrawal.” It also offered a wide range of training services, including in “defensive and offensive small group operations.” Greystone boasted that it “maintains and trains a workforce drawn from a diverse base of former special operations, defense, intelligence, and law enforcement professionals ready on a moment’s notice for global deployment.” The countries from which Greystone claimed to draw recruits were: the Philippines, Chile, Nepal, Colombia, Ecuador, El Salvador, Honduras, Panama, and Peru, many of whose forces have human rights records that are questionable at best. It asked applicants to check off their qualifications in weapons: AK-47 rifle, Glock 19, M-16 series rifle, M-4 carbine rifle, machine gun, mortar, and shoulder-fired weapons (RPG, LAAW). Among the qualifications the application sought: sniper, marksman, door gunner, explosive ordnance, counter-assault team. In Iraq, Blackwater has deployed scores of Chilean mercenaries, some of whom trained and served under the brutal regime of Augusto Pinochet. “We scour the ends of the earth to find professionals,” said Blackwater president Gary Jackson. “The Chilean commandos are very, very professional and they fit within the Blackwater system.”22

  With domestic armed forces stretched to the limit—and a draft off the table for political reasons—the U.S. government is left to struggle to find nation-state allies willing to staff the occupations of its “global war on terror.” If the national armies of other states will not join a “coalition of the willing,” Blackwater and its allies offer a different sort of solution: an alternative internationalization of the force achieved by recruiting private soldiers from across the globe. If foreign governments are not on board, foreign soldiers—many of whose home countries oppose the U.S. wars—can still be enlisted, at a price. This process, critics allege, is nothing short of a subversion of the very existence of the nation-state and of principles of sovereignty and self-determination. “The increasing use of contractors, private forces or as some would say ‘mercenaries’ makes wars easier to begin and to fight—it just takes money and not the citizenry,” says Michael Ratner, president of the Center for Constitutional Rights, whose organization has sued private contractors for alleged human rights violations in Iraq.23 “To the extent a population is called upon to go to war, there is resistance, a necessary resistance to prevent wars of self-aggrandizement, foolish wars and in the case of the United States, hegemonic imperialist wars. Private forces are almost a necessity for a United States bent on retaining its declining empire. Think about Rome and its increasing need for mercenaries. Likewise, here at home in the United States. Controlling an angry, abused population with a police force bound to obey the Constitution can be difficult—private forces can solve this ‘problem.’”

  As with Halliburton, the Pentagon’s largest contractor, Blackwater is set apart from simple war profiteers by the defining characteristic of its executives’ very long view. They have not just seized a profitable moment along with many of their competitors but have set out to carve a permanent niche for themselves for decades to come. Blackwater’s aspirations are not limited to international wars, however. Its forces beat most federal agencies to New Orleans after Hurricane Katrina hit in 2005, as hundreds of heavily armed Blackwater mercenaries—some fresh from deployment in Iraq—fanned out into the disaster zone. Within a week, they were officially hired by the Department of Homeland Security to operate in the U.S. Gulf, billing the federal government $950 a day per Blackwater soldier.24 In less than a year, the company had raked in more than $70 million in federal hurricane-related contracts—about $243,000 a day.25 The company saw Katrina as another moment of great opportunity and soon began applying for permits to contract its forces out to local governments in coastal states. “Look, none of us loves the idea that devastation became a business opportunity,” said the Blackwater official heading up its new domestic operations division formed after Katrina.26 “It’s a distasteful fact, but it is what it is. Doctors, lawyers, funeral directors, even newspapers—they all make a living off of bad things happening. So do we, because somebody’s got to handle it.” But critics see the deployment of Blackwater’s forces domestically as a dangerous precedent that could undermine U.S. democracy. “Their actions may not be subject to constitutional limitations that app
ly to both federal and state officials and employees—including First Amendment and Fourth Amendment rights to be free from illegal searches and seizures. Unlike police officers, they are not trained in protecting constitutional rights,” says CCR’s Michael Ratner. “These kind[s] of paramilitary groups bring to mind Nazi Party brownshirts, functioning as an extrajudicial enforcement mechanism that can and does operate outside the law. The use of these paramilitary groups is an extremely dangerous threat to our rights.”

  What is particularly scary about Blackwater’s role in a war that President Bush labeled a “crusade” is that the company’s leading executives are dedicated to a Christian-supremacist agenda. Erik Prince and his family have provided generous funding to the religious right’s war against secularism and for expanding the presence of Christianity in the public sphere.27 Prince is a close friend and benefactor to some of the country’s most militant Christian extremists, such as former Watergate conspirator Chuck Colson, who went on to become an adviser to President Bush and a pioneer of “faith-based prisons,” and Christian conservative leader Gary Bauer, an original signer of the Project for a New American Century’s “Statement of Principles,” whom Prince has worked alongside since his youth and who was a close friend of Prince’s father. Some Blackwater executives even boast of their membership in the Sovereign Military Order of Malta,28 a Christian militia formed in the eleventh century, before the first Crusades, with the mission of defending “territories that the Crusaders had conquered from the Moslems.”29 The Order today boasts of being “a sovereign subject of international law, with its own constitution, passports, stamps, and public institutions” and “diplomatic relations with 94 countries.”30 The outsourcing of U.S. military operations in Muslim countries and in secular societies to such neo-crusaders reinforces the greatest fears of many in the Arab world and other opponents of the administration’s wars.

  Most of the world first heard of “private military companies” after the infamous March 31, 2004, ambush of four Blackwater soldiers in Fallujah, Iraq—a gruesome mob murder that marked the moment the war turned and the Iraqi resistance exploded. Many of the media reports at the time (and today) refer to these shadowy forces as “civilian contractors” or “foreign reconstruction workers” as though they were engineers, construction workers, humanitarians, or water specialists. The term “mercenary” was almost never used to describe them. That is no accident. Indeed, it is part of a very sophisticated rebranding campaign organized by the mercenary industry itself and increasingly embraced by policy-makers, bureaucrats, and other powerful decision makers in Washington and other Western capitals. Those men who died at Fallujah were members of Washington’s largest partner in the coalition of the willing in Iraq—bigger than Britain’s total deployment—and yet most of the world had not a clue they were there. The ambush resulted in Blackwater being positioned in a key role to affect the regulations that would oversee (or not) the rapidly expanding industry, of which Blackwater was the new leader. Three months later, the company was handed one of the U.S. government’s most valuable international security contracts: to protect diplomats and U.S. facilities. The highly publicized deaths of four of its private soldiers would prove to be the spark that set Blackwater on a path to success for years to come.

  The story of Blackwater’s rise is an epic one in the history of the military-industrial complex. The company is the living embodiment of the changes wrought by the revolution in military affairs and the privatization agenda radically expanded by the Bush administration under the guise of the war on terror. But more fundamentally, it is a story about the future of war, democracy, and governance. This story goes from the company’s beginnings in 1996, with visionary Blackwater executives opening a private military training camp in order “to fulfill the anticipated demand for government outsourcing of firearms and related security training,” to its contract boom following 9/11, to the blood-soaked streets of Fallujah, where the corpses of its mercenaries were left to dangle from a bridge. It includes a rooftop firefight in Muqtada al-Sadr’s stronghold of Najaf; an expedition to the oil-rich Caspian Sea, where the administration sent Blackwater to set up a military base just miles from the Iranian border; a foray into New Orleans’s hurricane-ravaged streets; and many hours in the chambers of power in Washington, D.C., where Blackwater executives are welcomed as new heroes in the war on terror. But the rise of the world’s most powerful mercenary army began far away from the current battlefields, in the sleepy town of Holland, Michigan, where Erik Prince was born into a right-wing Christian dynasty. It was the Prince family that laid the groundwork, spending millions of dollars over many decades to bring to power the very forces that would enable Blackwater’s meteoric ascent.

  CHAPTER TWO

  THE LITTLE PRINCE

  THE STATELY mansion at 1057 South Shore Drive in Holland, Michigan, is about as far from Fallujah as one could imagine. The home where young Erik Prince, founder of Blackwater USA, grew up sits along the sleepy banks of Lake Macatawa, an inlet of Lake Michigan in the American Midwest. Trees shimmer along the edges of the driveway on a summer day; the sun glints peacefully off the lake. Occasionally, a car clips by or a boat motor starts, but otherwise the neighborhood is calm and quiet, the embodiment of affluent, postcard American society. Two middle-aged women power-walk past a man lazily riding his lawnmower. Other than that, the street is deserted. As they trot by, one of the women glances over to her companion, their sun visors almost colliding, and asks whether the Prince family still owns the mansion. The estate is well-known, the family more so. In Holland, Michigan, the Princes were indeed royalty, and Erik’s father, Edgar Prince, was the king.

  Much like Blackwater’s compound in Moyock, North Carolina—a seven-thousand-acre peat bog with a constant rattle of machine-gun fire—is Erik Prince’s personal fiefdom, the idyllic Dutch hamlet of Holland was his father’s. A self-made industrialist, Edgar Prince employed nearly a quarter of the city. He shaped its institutions, planned and funded its downtown, and was among the biggest benefactors to its two colleges. A decade after Edgar’s sudden death in 1995, his presence and legacy still permeate the town. On the corner of two of the busiest streets in Holland’s soccer-mom-chic downtown, there is a monument to Ed Prince: seven bronze footsteps embedded in the ground lead to a raised platform upon which stand life-sized bronze statues of a trio of musicians—a tuxedoed cello player, a mustached violinist, and a young woman wearing a skirt who is blowing into her flute. Another statue depicts a little girl standing with her arms wrapped around a small boy, holding a book of music notes, their mouths frozen in song. On the pedestal below the group is a small plaque memorializing Edgar D. Prince: “We will always hear your footsteps,” it reads. “The People of Downtown Holland honor your extraordinary vision and generosity.”

  If there was one lesson Edgar Prince was poised to impart to his children, it was how to build and maintain an empire based on strict Christian values, right-wing politics, and free-market economics. But while the landscape of Holland today is dotted with memorials to the Prince family legacy, Edgar was not the town’s original emperor. Dating back to the community’s founding, Holland had long been run by Christian patriarchs. In 1846, with a sea-weary clan of fifty-seven fellow Dutch refugees, Albertus Van Raalte came ashore in western Michigan. Prince’s predecessor had fled his home country because he had “undergone all manner of humiliation and persecution through his defiance of the religious restrictions imposed by the State church,” according to the city.1

  Van Raalte was a member of a sect of the Dutch Reform Church opposed by the Dutch monarchy at the time. After arriving in the United States aboard his vessel, the Southerner, Van Raalte led the clan to the shores of Lake Michigan, where he envisioned a community free to live and worship within the tenets of his brand of Dutch Reform, and without any outside influence. After some scouting he came upon a perfect spot, next to a lake that ran into Lake Michigan. On February 9, 1847, Van Raalte’s community was founded, on t
he site where Erik Prince would later spend his youth, perhaps some of it on the creaking dock that sneaks out into the Lake Michigan inlet. But Van Raalte’s perfect vision would not be realized quite as he expected, according to a biography produced by Hope College, which he founded and which has seen millions of dollars in donations from the Prince family: “[Van Raalte’s] goal of developing a Christian community governed by Christian principles was visionary but was shattered in 1850. Holland Township became the basic unit of government. Van Raalte’s ideal of Christian control was lost.”2 But Van Raalte sought alternative means of establishing his Shangri-La in Holland. “His influence was felt because he became active in politics and he continued to own large tracts of land,” according to the biography. “Although many of the means to achieve a Christian community broke down, Van Raalte was still the pastor of the only church, member of the district school board, guiding light of the Academy, principal landowner, and a businessman with major property holdings.”3 Virtually the same description could be applied to Edgar Prince and, eventually, to Erik, born nearly a century after Van Raalte’s death.