Scandal-Plagued Mercenary Firm Blackwater Makes a Play for the Big Money

By Jeremy Scahill, The Nation. Posted December 8, 2007.

Gunning down seventeen Iraqi civilians in an incident the military has labeled "criminal." Multiple Congressional investigations. A federal grand jury. Allegations of illegal arms smuggling. Wrongful death lawsuits brought by families of dead employees and US soldiers. A federal lawsuit alleging war crimes. Charges of steroid use by trigger-happy mercenaries. Allegations of "significant tax evasion." The US-installed government in Iraq labeling its forces "murderers." With a new scandal breaking practically every day, one would think Blackwater security would be on the ropes, facing a corporate meltdown or even a total wipeout. But it seems that business for the company has never been better, as it continues to pull in major federal contracts. And its public demeanor grows bolder and cockier by the day.

Rather than hiding out and hoping for the scandals to fade, the Bush Administration's preferred mercenary company has launched a major rebranding campaign, changing its name to Blackwater Worldwide and softening its logo: once a bear paw in the site of a sniper scope, it's now a bear claw wrapped in two half ovals -- sort of like the outline of a globe with a United Nations feel. Its website boasts of a corporate vision "guided by integrity, innovation, and a desire for a safer world." Blackwater mercenaries are now referred to as "global stabilization professionals." Blackwater's 38-year-old owner, Erik Prince, was No. 11 in Details magazine's "Power 50," the men "who control your viewing patterns, your buying habits, your anxieties, your lust. ... the people who have taken over the space in your head."

In one of the company's most bizarre recent actions, on December 1 Blackwater paratroopers staged a dramatic aerial landing, complete with Blackwater flags and parachutes -- not in Baghdad or Kabul but in San Diego at Qualcomm Stadium during the halftime show at the San Diego State/BYU football game. The location was interesting, given that Blackwater is fighting fierce local opposition to its attempt to open a new camp -- Blackwater West -- on 824 acres in the small rural community of Potrero, just outside San Diego. Blackwater's parachute squad plans to land at the Armed Forces Bowl in Texas this month and the Virginia Gold Cup in May. The company recently sponsored a NASCAR racer, and it has teamed up with gun manufacturer Sig Sauer to create a Blackwater Special Edition full-sized 9-millimeter pistol with the company logo on the grip. It comes with a Limited Lifetime Warranty. For $18, parents can purchase infant onesies with the company logo.

In recent weeks, Blackwater has indicated it might quit Iraq. "We see the security market diminishing," Prince told the Wall Street Journal in October. Yet on December 3 Blackwater posted job listings for "security specialists" and snipers as a result of its State Department diplomatic security "contract expansion." While its name may be mud in the human rights world, Blackwater has not only made big money in Iraq (about $1 billion in State Department contracts); it has secured a reputation as a company that keeps US officials alive by any means necessary. The dirty open secret in Washington is that Blackwater has done its job in Iraq, even if it has done so by valuing the lives of Iraqis much lower than those of US VIPs. That badass image will serve it well as it expands globally.

Prince promises that Blackwater "is going to be more of a full spectrum" operation. Amid the cornucopia of scandals, Blackwater is bidding for a share of a five-year, $15 billion contract with the Pentagon to "fight terrorists with drug-trade ties." Perhaps the firm will join the mercenary giant DynCorp in Colombia or Bolivia or be sent into Mexico on a "training" mission. This "war on drugs" contract would put Blackwater in the arena with the godfathers of the war business, including Lockheed Martin, Northrop Grumman and Raytheon.

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Jeremy Scahill, a Puffin Foundation Writing Fellow at The Nation Institute, is the author of the bestselling Blackwater: The Rise of the World's Most Powerful Mercenary Army, published by Nation Books. He is an award-winning investigative journalist and correspondent for the national radio and TV program Democracy Now!.

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