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

by Jeremy Scahill

  A few miles away from the French Quarter, another wealthy New Orleans businessman, James Reiss, who served in Mayor Ray Nagin’s administration as chairman of the city’s Regional Transit Authority, brought in some heavy guns to guard the elite gated community of Audubon Place: Israeli mercenaries dressed in black and armed with M- 16s. Reiss, who flew the men in by helicopter, told the Wall Street Journal, “Those who want to see this city rebuilt want to see it done in a completely different way: demographically, geographically and politically. The way we’ve been living is not going to happen again, or we’re out.”34 Two Israelis patrolling the gates outside Audubon said they had served as professional soldiers in the Israeli military, and one boasted of having participated in the invasion of Lebanon. “We have been fighting the Palestinians all day, every day, our whole lives,” one of them declared. “Here in New Orleans, we are not guarding from terrorists.”35 Then, tapping on his machine gun, he said, “Most Americans, when they see these things, that’s enough to scare them.”

  The men said they worked for Instinctive Shooting International, which described its employees as “veterans of the Israeli special task forces from the following Israeli government bodies: Israel Defense Force (IDF), Israel National Police Counter Terrorism units, Instructors of Israel National Police Counter Terrorism units, General Security Service (GSS or ‘Shin Beit’), Other restricted intelligence agencies.”36 The company was formed in 1993. Its Web site profile said: “Our up-to-date services meet the challenging needs for Homeland Security preparedness and overseas combat procedures and readiness. ISI is currently an approved vendor by the US Government to supply Homeland Security services.”

  As countless guns poured into New Orleans, there was a distinct absence of relief operations, food, and water distribution. The presence of the mercenaries raised another important question: given the enormous presence in New Orleans of National Guard, U.S. Army, U.S. Border Patrol, local police from around the country, and practically every other government agency with badges, why were private security companies needed, particularly to guard federal projects? “I don’t know that there are any terrorist attacks being planned against FEMA offices in the Gulf Coast,” said Illinois Senator Barack Obama. “It strikes me, with all the National Guardsmen that we’ve got down there, with a bunch of local law enforcement that are back on the job and putting their lives back together again, that that may not be the best use of money.”37 Shortly after The Nation exposed Blackwater’s operations in New Orleans, Representative Schakowsky and a handful of other Congress members raised questions about the scandal. They entered the reporting into the Congressional Record during hearings on Katrina in late September 2005 and cited it in letters to DHS Inspector General Richard Skinner, who then began an inquiry.38 In letters to Congressional offices in February 2006, Skinner defended the Blackwater deal, asserting that it was “appropriate” for the government to contract with the company. Skinner admitted that “the ongoing cost of the contract . . . is clearly very high” and then quietly dropped a bombshell: “It is expected that FEMA will require guard services on a relatively long-term basis (two to five years).”39

  The hurricane’s aftermath ushered in the homecoming of the “war on terror,” a contract bonanza whereby companies reaped massive Iraq-like profits without leaving the country and at a minuscule fraction of the risk. To critics of the government’s handling of the hurricane, the message was clear. “That’s what happens when the victims are black folks vilified before and after the storm—instead of aid, they get contained,” said Chris Kromm, executive director of the Institute for Southern Studies and an editor of Gulf Coast Reconstruction Watch.40 Kromm alleged that while seemingly endless amounts of money were doled out to scandal-ridden contractors, vital projects had “gotten zero or little money” in New Orleans in the same period, including: job creation, hospital and school reconstruction, affordable housing, and wetlands restoration. Even in this context, DHS continued to defend the Blackwater contract. In a March 1, 2006, memo to FEMA, Matt Jadacki, the DHS Special Inspector General for Gulf Coast Hurricane Recovery, wrote that the Federal Protective Service considered Blackwater “the best value to the government.”41

  A month after Katrina hit, Blackwater’s guards were also working the Hurricane Rita gravy train. At its high point the company had about six hundred contractors deployed from Texas to Mississippi.42 By the summer of 2006, Blackwater’s operations in New Orleans were staffed more by police types than the commandos of the early deployment. The paramilitary gear was eventually replaced by black polo shirts with the company logo, khaki pants, and pistols as Blackwater men patrolled the parking lot of a Wal-Mart that had been converted into a FEMA outpost.43 In late August 2006, Blackwater was still guarding such vital public institutions as the city library—which was being used by FEMA—where one patron, after allegedly being refused entry by a Blackwater guard and finding himself unable to get an explanation as to why, said the “brazen representative declined to give his name and called a supervisor who declined to give his name or the name of the representative who denied [the man] access to the library.”44 In Baton Rouge, Blackwater set up a Katrina zone headquarters, renting space at the World Evangelism Bible College and Seminary, run by disgraced Christian televangelist Jimmy Swaggart (whose public career went up in flames in 1988 when he was caught with a prostitute in a motel).45

  For Blackwater, Katrina was a momentous occasion—its first official deployment on U.S. soil. While it raked in a hefty sum for the domestic disaster operations, the greatest benefit to the company was in breaking into a new, lucrative market for its mercenary services—far from the bloodletting of Iraq. As the Virginian-Pilot, which is right in Blackwater’s backyard, observed, the hurricanes of 2005 represented “a potential plug for a hole in Blackwater’s business model. Private military companies thrive on war—an icy fact that could gut the now-booming industry when or if Iraq settles down. Katrina offered Blackwater a chance to diversify into natural disasters.”46 Erik Prince has said that prior to Katrina, “We had no plans to be in the domestic security business at all.”47 In the aftermath of the hurricane, though, Blackwater launched a new domestic operations division. “Look, none of us loves the idea that devastation became a business opportunity,” said the new division’s deputy, Seamus Flatley, a retired Navy fighter pilot. “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.”48

  But critics saw 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 apply 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,” said CCR’s Ratner. “These kind 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.”

  Blackwater and the Border

  One quality Blackwater USA has consistently put on display is its uncanny ability to be in the right place at the right moment—especially when it comes to scooping up lucrative government contracts. Far from being a matter of simple luck, the company has dedicated substantial resources to monitoring trends in the world of law enforcement and military actions and has hired many well-connected ex-spooks, former federal officials, and military brass. Like the best entrepreneurs, Blackwater is always looking to provide what it refers to as “turnkey” solutions for problems ailing the government bureaucracy or to fill the seemingly endless “national security” holes appearing in the wake of the “war on terror.” In the years following 9/11, Blackwater proved remarkably adept at placing itself in the middle of many o
f the prized battles the administration (and the right in general) was waging: rapid privatization of government, the occupations of Iraq and Afghanistan, and bolstering Christian/Republican friendly businesses.

  While the hurricanes expedited Blackwater’s domestic program, it was by no means the first time the company had considered the major profits to be made on the home front. In fact, in mid-2005, three months before Katrina hit—and with its forces firmly entrenched in Iraq and a taxpayer-funded I.V. running directly from Washington, D.C., to Moyock—Blackwater quietly threw its hat into the ring of another major front: immigration and “border security.” After the launch of the “war on terror,” anti-immigrant groups used the fear of further attacks to push for greater militarization of the U.S. borders—with some calling for a massive fence stretching hundreds of miles along the U.S./Mexico border—and to “crack down” on people they characterized as “illegal aliens.”

  In April 2005, the anti-immigrant/pro-militarized-border cause got a huge boost as the Minuteman Project Civil Defense Corps exploded onto the scene. The overwhelmingly white movement organized anti-immigrant militias to patrol the U.S. border with Mexico. The Minutemen, named after the militias that fought in the American Revolution, billed themselves as “Americans doing the jobs our Government won’t do.” They claimed to have hundreds of volunteers from thirty-seven states, among them many former military and law enforcement officers as well as pilots who would do aerial surveillance.

  One of Blackwater’s key Congressional allies, Representative Duncan Hunter, began stepping up his campaign for a massive “border fence,”49 while Erik Prince’s old boss, Representative Dana Rohrabacher endorsed the Minutemen, saying the militias “demonstrated the positive effects of an increased presence on the southwest border. There’s no denying that more border patrol agents would help create a stronger border and decrease illegal crossings that may include international terrorists.”50 T. J. Bonner, president of the National Border Patrol Council—a lobbying organization—echoed those sentiments, invoking the 9/11 attacks. “Even if a terrorist is a one-in-a-million occurrence, with several million people coming into the country every year, very soon they reach that critical mass necessary to carry out another attack on the magnitude of September 11,” he said. “This is totally unacceptable from the standpoint of homeland security and national security. We have to gain control of our borders.”51

  On Capitol Hill, Republican operatives seized the opportunity to escalate their anti-immigrant, proprivatization, promilitarization campaign and push forward with an agenda that would have been difficult to popularize before 9/11. Now, the new national hysteria provided the ideal turf to wage the battle. In the midst of this, on May 18, 2005, the House of Representatives passed the first Department of Homeland Security Authorization Bill, which approved the hiring of some two thousand new border patrol agents. On May 24, the House Homeland Security Committee’s management integration and oversight subcommittee held a hearing on the training of these new agents. One of the central purposes of the hearing seemed to be to promote outsourcing the border-training program to the private sector.

  The first panel of the hearings consisted of two U.S. government immigration officials. The second panel represented the private industry. For this panel, there were just two speakers: T. J. Bonner and Gary Jackson.52 “We need reinforcements desperately, and we need them yesterday,” Bonner told the hearing. “There’s a crying need for agents clearly, which is borne out by the call for citizen patrol groups, military on the border. Clearly we’re not doing our job. But the reason we need more border patrol agents is to secure our borders. We need to spend whatever it takes, not try and do it on the cheap, not try and figure out how we can cut corners to hire as many border patrol agents as possible, but to spend whatever it takes to support these men and women so that they can go out there.”53 Jackson began his testimony by running through a brief, selective history of Blackwater. The company, he said, was founded “from a clear vision of the need for innovative, flexible training and security solutions in support of national and global security challenges. Both the military and law enforcement agencies needed additional capacity to fully train their personnel to the standards required to keep our country secure. Because these constraints on training venues continued to increase, Blackwater believed that the U.S. government would embrace outsourcing of quality training. We built Blackwater’s facility in North Carolina to provide the capacity that we thought our government would need to meet its future training requirements. Over the years, Blackwater has not only become an industry leader in training but at the cutting edge.” Jackson said that as the company grew, “We quickly realized the value to the government of one-stop shopping. While there were other companies who offered one or two distinct training services, none of them offer all of our services and certainly not at one location.” The importance of this, Jackson said, “cannot be overstated. Being able to conduct training at a centralized locality is the most cost-effective, efficient way of ensuring that new federal law enforcement agents are trained to the level demanded by today’s national and homeland security challenges.”54

  Alabama Republican Mike Rogers, who chaired the Congressional hearing, blasted the costs of government training programs for border agents, saying, “It’s going to cost more to train a border patrol officer in a ten-month program than it is to get a four-year degree at Harvard University.” Rogers asked: if Blackwater was given $100,000 per agent, did Jackson believe the company “would give them equal or better training than they’re receiving” from the federal government’s training program? “I could assure you of that,” Jackson shot back. He told the lawmakers that Blackwater could train all two thousand new border patrol agents in one year. “Blackwater successfully conducts a similar public-private partnership with the Department of State to recruit, train, deploy, and manage diplomatic security specialists in Iraq and other areas of interest. Securing our borders will continue to be a challenge for our nation,” Jackson said. “The urgency is clear. History repeatedly demonstrates that innovation and efficiency are what alter the strategic balance, and Blackwater offers both in support of training new border patrol agents. Just as the private sector has responded in moving mail and packages around the world in a more efficient manner, so too can Blackwater respond to the CBP (Customs and Border Patrol) emerging and compelling training needs.”

  A few days later, Blackwater’s Tactical Weekly newsletter carried the news headline “Border Patrol Should Consider Outsourcing Its Training, Lawmaker Says.”55 The article, from the Federal Times, reported that “[Congressman] Rogers said the government may need to turn to Blackwater USA or other contractor if they can do the job cheaper. ‘We have a fiduciary obligation to taxpayers to look at other options,’ Rogers said. ‘It’s irresponsible to go forward with that in the absence of supporting documentation.’”56

  In November 2005, Blackwater and the American Red Cross held a joint “Gulf Region Relief” fundraiser that symbolically brought Blackwater’s diverse federal contracts full circle. The keynote speaker, welcomed with a standing ovation, was Blackwater’s once-prized client, L. Paul Bremer, whose book on Iraq had just been published. Blackwater claimed to have raised $138,000 that night57—about $100,000 shy of the company’s estimated daily take from the Katrina contracting jackpot. “Tonight was a success because it was about Americans helping Americans,” said Gary Jackson, repeating what had become Blackwater’s new mantra. “Our great employees and our special relationship with Ambassador Bremer and the Red Cross made it possible to pull off this event.”58 It was reminiscent of the tobacco industry cheering its own meager contributions to antismoking campaigns, while at the same time aggressively marketing cigarettes with exponentially more resources. In reality, Blackwater gained far more from the hurricane than New Orleans’s victims did from Blackwater’s services.

  President Bush used the Katrina disaster to try to repeal the Posse Comitatus Act (the ban on using U.S. tr
oops in domestic law enforcement), and Blackwater and other security firms initiated a push to install their paramilitaries on U.S. soil, bringing the war home in yet another ominous way. “This is a trend,” said one Blackwater mercenary in New Orleans. “You’re going to see a lot more guys like us in these situations.” Blackwater had now solidified its position not only as one of the great beneficiaries of the “war on terror” but as a major player in several of the key arenas of the neoconservative agenda. On the one-year anniversary of Katrina, Gary Jackson used the opportunity to showcase Blackwater’s services. “When the Department of Homeland Security called with an emergent and compelling requirement for a turnkey security solution for multiple federal assets, we responded,” he wrote. “Our Rapid Response Enterprise has global reach and can make a positive difference in the lives of those who are affected by natural disasters and terrorist events.”59

  Shortly after Blackwater’s Katrina profits started rolling in, Erik Prince sent out a memo on Prince Group letterhead to “all Blackwater USA officers, employees, and independent contractors.” Its subject: “Blackwater USA National Security Oath and Leadership Standards.” It required Blackwater workers to swear the same oath to the Constitution as Blackwater’s “National Security-related clients” to “support and defend the Constitution of the United States against all enemies, foreign and domestic. . . . So help me God.”60