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Intelligence Contractor Wasn't Pleased When We Showed up at its Shareholder's Meet

Posted by Tonya Hennessey, CorpWatch at 9:24 AM on May 10, 2008.


We were shareholders, but apparently not the right kind.

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A funny thing happened on the way to exercising my presumed right, as a shareholder, to attend yesterday's annual shareholder meeting of private military contractor L-3 Communications, held at the Ritz-Carlton Hotel in Manhattan's financial district.

I was one of a group including a translator, Marwan Mawiri, who worked for a year and 1⁄2 for Titan, now an L-3 subsidiary, in Iraq. Marwan has witnessed first-hand numerous problems with the way interrogation and translation contracting is being handled in Iraq - a practice that may be putting at substantial risk the national security and lives of the Iraqi people, of U.S. and multinational troops, officials and contractors, and of the United States itself.

The problem is clear: inadequate and downright bad vetting and hiring practices for analysts, interrogators and linguists. Indeed, the U.S. military has recently canceled Titan's translation contract due to poor practices along with waste, fraud and abuse.

What is also crystal clear is that the war in Iraq can neither be won, effectively prosecuted, nor competently withdrawn from until these problems are solved and until proper oversight is in place.

If people hired to translate in critical battlefield and other situations are not even fluent in at least Arabic and English; if screeners monitoring the entry and exit of people to U.S. military bases at times have no more qualification and training than having been a baggage screener at a U.S. airline (see CorpWatch's new report: "Outsourcing Intelligence in Iraq"); if interrogators are not qualified, experienced and trained to the highest standards possible, how can we ensure that we avoid future travesties due to bad intelligence? Such as the bad intelligence around the supposed Iraqi weapons of mass destruction program (which was, of course, Bush/Cheney and neocon-driven, not L-3-driven), that got the U.S. into this war in the first place? (And remember, even when U.S. soldiers start coming home from Iraq, large numbers of private contractors will stay, making proper oversight all the more crucial.)

It turned out that L-3's management wasn't so happy to see us, and that my co-worker, Pratap Chatterjee and I, were supposed to have received a certain admission ticket to attend the meeting. The same went for our companions from the Iraq Campaign 2008 - a major coalition to oppose the war, which is now taking on private military contractors as part of their broader campaign on the high cost U.S. taxpayers are paying for the war in Iraq - and Foreign Policy in Focus, who were holding proxies. Funny that.

Looking out at the Statue of Liberty from the hotel lobby downstairs, where we gathered to figure out how to proceed, I pondered the damage this war has done to the liberties of so many Iraqi people, and to so many U.S. liberties and values that I hold dear. Like respect for human rights, compliance with the Geneva Conventions around torture, appropriate security that is handled with skill and integrity. I wasn't surprised that L-3/Titan didn't want to hear our message; though I sincerely hope some of the shareholders, managers, directors, staff and  financial analysts do take the time to read our report and to talk to current and former contractors like Marwan. We didn't go in malice.

We went in genuine concern over business operations that, while they may be earning a pretty profit for large shareholders, pose a genuine reputational risk to the company for future liability. And are causing harm on the ground, to real people. We challenge L-3 Communications to become a truly ethical leader in business practices, not just in products and sales. Surely the sixth-largest U.S.  defense industry company (according to their website) has the intelligence to recognize bad practices and the ability to change them for the better.

Or are we simply destined for years more, as Huffington Post blogger Charlie Cray put it, of companies and investors milking a "Baghdad Bubble as a result of the Bush administration's refusal to hold them accountable"?

As the meeting ended, and the muckety-mucks began leaving the Ritz-Carlton to be chauffered away in their Lincoln Town cars and limousines, we gave these decision makers another opportunity to take a copy of CorpWatch's report, or even to talk to us directly. The vast majority kept their blinders on and marched resolutely past.

Suddenly we saw General Carl Vuono (ret.). Vuono is former chief of staff of the U.S. Army, and long-time president of private military consulting firm MPRI, which is now also an L-3 subsidiary. Pratap and Marwan rushed to try and speak  with him, while a reporter and cameraman from Al-Jazeera English filmed and stood at the ready for the general's reply. The general didn't want to talk, but you can see some of the footage on YouTube. You can also watch Pratap and Marwan describe their experiences on Democracy Now!, where they were interviewed live this morning.

Pratap gave the general a copy of "Outsourcing Intelligence In Iraq" - maybe he'll decide to have one of his staffers give it a read. We'd love to talk, and welcome any dialogue with officials of L-3.

Digg!

Tagged as: abu ghraib, mercenaries, outsourcing, security contractors, l-3/titan

Tonya Hennessey is a project director at CorpWatch.


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View:
Privatization KILLS!
Posted by: Purple Girl on May 11, 2008 7:10 PM   
Current rating: 5    [1 = poor; 5 = excellent]
Yet another example how the facade that privatizing is cost effective and efficient. Proof of this lie are enough to fill volumes in a Doctoratal Dissertation!
This Corp Privatization IS NOT The FREE MARKET!
This is nothing more than monopoliziing and Profitizing. No Real Over sight, No quality assurance and no Competition to challenge or gauge societal benefits.
It has undermined the very foundation of our Country- Pure Cronyism,Buddy Back Scratching has bought our nation to it's Knees. It's time to hold this type of Politics and Business mentality PERSONALLY CRIMINALLY LIABLE. These insider agreements are Treasonous, leading to War Crimes and Crimes against Humanity. Individuals Must face these crimes- No longer able to hide behind their institutions for protection against Personal Responsiblity. No More Corp hand slaps, no more congressional cover ups.People are the ones who make these immoral and Unethical decisions- People must Stand Trial!

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» RE: Privatization KILLS! Posted by: luzmejor
To play their game, gotta learn the rules
Posted by: dedalus on May 11, 2008 8:04 PM   
Current rating: 5    [1 = poor; 5 = excellent]
I love shareholder activism, and encourage you (and many, many others!) to continue in such efforts.

However, in taking this approach, you have to understand that you're challenging a corporation on its own playing field. To do so, you've got to learn the rules.

In this case, it's standard practice for companies to practice an "opt-in" approach to shareholder meeting attendance. You get your proxy form, and if you don't check the "I will attend the meeting" box, you've uninvited yourself.
(Related--Increasingly, companies are pushing shareholders toward on-line access to proxy materials and voting. And my experience with the on-line voting process is that it's designed to make it easy for a shareholder who's not paying very close attention to accidentally vote with the Board of Directors. I suggest you talk with your broker and make sure you get a paper copy of the proxy materials.)

Remember that the corporation itself is not evil, but inherently amoral and self-interested. (We're talking about the corporation, not its officers or directors ;) ) In the long run, it is the pressure of customers (the market) and shareholders (the owners) which shape the "conscience" of a corporation.

So keep up the good work!!! But I suggest you first attend a few shareholder meetings strictly as a spectator, to get a sense of the odd kabuki theater that these meetings really are, in order to better plan for future efforts at redirecting the script.

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» RE: Wonderful solid and helpful Posted by: boydranchitos
If you think
Posted by: willymack on May 12, 2008 12:06 PM   
Current rating: 5    [1 = poor; 5 = excellent]
Anyone in this fascist dictatorship wants the Iraq tragedy to come to an end as long as there's oil to steal and obscene profits to be made, then I've got some oceanfront property in Nebraska to sell you.

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