Robert Gates Confirms What U.S. Government Has Denied for Months: Blackwater Is in Pakistan

On Thursday, Defense Secretary Robert Gates confirmed that Blackwater is operating in Pakistan. In an interview on Express TV, Gates, who was visiting Islamabad, said, "They [Blackwater and another private security firm, DynCorp] are operating as individual companies here in Pakistan," according to a DoD transcript of the interview. "There are rules concerning the contracting companies. If they're contracting with us or with the State Department here in Pakistan, then there are very clear rules set forth by the State Department and by ourselves."

Today, the country's senior minister for the North-West Frontier Province (NWFP), Bashir Bilour, also acknowledged that the company is operating in Pakistan's frontier areas. Bilour told Pakistan's Express News TV that Blackwater's activities were taking place with the "consent and permission" of the Pakistani government, saying he had discussed the issue with officials at the US Consulate in Peshawar, who told him that Blackwater was training Pakistani forces.

When Gates was asked what the US response would be if the Pakistani parliament passed a law banning private security companies, Gates said, "If it's Pakistani law, we will absolutely comply."

As Gates's comments began to make huge news in Pakistan, US defense officials tried to retract his statement. As the Wall Street Journal reported, "Defense officials tried to clarify the comment Thursday night, telling reporters that Mr. Gates had been speaking about contractor oversight more generally and that the Pentagon didn't employ Xe in Pakistan."

Bilour's statements are consistent with what a former Blackwater executive and a US military intelligence source told me in December -- that Blackwater is working on a subcontract for Kestral, a Pakistani security and logistics firm. That contract, say my sources, is technically with the Pakistani government, which helps cloak Blackwater's presence. From my article in The Nation:

Blackwater owner Erik Prince is close with Kestral CEO Liaquat Ali Baig, according to the former Blackwater executive. "Ali and Erik have a pretty close relationship," he said. "They've met many times and struck a deal, and they [offer] mutual support for one another." Working with Kestral, he said, Blackwater has provided convoy security for Defense Department shipments destined for Afghanistan that would arrive in the port at Karachi. Blackwater, according to the former executive, would guard the supplies as they were transported overland from Karachi to Peshawar and then west through the Torkham border crossing, the most important supply route for the US military in Afghanistan.

According to the former executive, Blackwater operatives also integrate with Kestral's forces in sensitive counterterrorism operations in the North-West Frontier Province, where they work in conjunction with the Pakistani Interior Ministry's paramilitary force, known as the Frontier Corps (alternately referred to as "frontier scouts"). The Blackwater personnel are technically advisers, but the former executive said that the line often gets blurred in the field. Blackwater "is providing the actual guidance on how to do [counterterrorism operations] and Kestral's folks are carrying a lot of them out, but they're having the guidance and the overwatch from some BW guys that will actually go out with the teams when they're executing the job," he said. "You can see how that can lead to other things in the border areas." He said that when Blackwater personnel are out with the Pakistani teams, sometimes its men engage in operations against suspected terrorists. "You've got BW guys that are assisting...and they're all going to want to go on the jobs--so they're going to go with them," he said. "So, the things that you're seeing in the news about how this Pakistani military group came in and raided this house or did this or did that--in some of those cases, you're going to have Western folks that are right there at the house, if not in the house." Blackwater, he said, is paid by the Pakistani government through Kestral for consulting services. "That gives the Pakistani government the cover to say, 'Hey, no, we don't have any Westerners doing this. It's all local and our people are doing it.' But it gets them the expertise that Westerners provide for [counterterrorism]-related work."