Washington, DC – Congressman John D. Dingell (D-MI15) applauded House passage of H.R. 5366, the “Overseas Contracting Reform Act.” This bill requires any person found to be in violation of the Foreign Corrupt Practices Act of 1977, which prohibits American companies and individuals from unlawfully influencing foreign officials, to be proposed for debarment from any federal contract or grant. The Congressman has long been concerned with the lack of transparency, accountability, and oversight of private security contractors operating overseas, especially following the murders of unarmed Iraqi civilians in Baghdad’s Nisour Square allegedly by Blackwater guards. He has sent several letters in 2007, 2008, and 2009 (see link to most recent letter below) to both the State Department and Department of Defense questioning those agencies’ continued relationship with Blackwater Worldwide (now Xe Services) and a Blackwater subsidiary, Paravant, in spite of past misconduct. Dingell made the following remarks on H.R. 5366, which passed the House 410-0.
“Madam Speaker, I rise in support of H.R. 5366, the Overseas Contracting Reform Act, which provides an important and necessary recourse for our government when contractors violate federal law. Specifically, the legislation requires the automatic proposal for debarment of any contractor found to be in violation of the Foreign Corrupt Practices Act (FCPA), which prohibits American companies and individuals from unlawfully influencing foreign officials.
“I commend the sponsor of this legislation, Representative Peter Welch of Vermont, for his work on this matter. Since the brutal shooting incident at Baghdad's Nisour Square in which guards employed by the private security contractor Blackwater Worldwide (now Xe Services) allegedly shot and killed 17 innocent and unarmed Iraqi civilians, I have worked to bring such contractors within the purview of U.S. law and to hold them accountable for their actions. Unfortunately, even after the Blackwater shooting gained considerable public attention, reports indicated that not only did contractors remain a significant part of the U.S. presence in Iraq and Afghanistan, but they also continued to serve in inappropriate roles such as conducting interrogations of suspected terrorists. All the while, the laws which govern them remain vague.
“As many of my colleagues and I have noted for several years, there is an egregious lack of both accountability and transparency for such firms and their employees. Although the Federal Acquisition Regulation (FAR) enables government officials to initiate suspension and debarment proceedings where the contractor has committed an offense "that seriously and directly affects the present responsibility of a government contractor or subcontractor," among other things, no official used this authority to initiate such proceedings with Blackwater. Moreover, as a recent Senate Armed Services Committee investigation underscores, Blackwater was able to secure new contracts by creating several dozen subsidiaries for the sole purpose of concealing its parent companies' identity. Contracting officers claim they weren't even aware that they were awarding contracts to a company under Blackwater's control.
“It is clear that the existence of authority to debar under the FAR is, in itself, insufficient to trigger debarment proceedings, perhaps because agency officials are unwilling to initiate debarment proceedings even when just cause is shown. That is why H.R. 5366 is an important piece of legislation. It will provide that companies automatically be proposed for debarment if they are found to be in violation of the FCPA. The Department of Justice is investigating whether Blackwater employees bribed Iraqi officials to allow them to continue doing business in Iraq, an obvious violation of the FCPA. Under H.R. 5366, if Blackwater is found guilty, the firm will automatically be proposed for debarment.
“Madam Speaker, all loopholes for private security contractors working overseas should have been closed long ago. Contractors and their employees must be held accountable for their actions overseas, especially during war time. This is not just important for the America's reputation for upholding justice and the rule of law, but for the safety and security of our troops and civilians serving overseas. Failing to do so undermines American national security interests. I urge my colleagues to join me in voting ‘yea’ on H.R. 5366.”
Congressman Dingell’s most recent letter on Blackwater/Paravant:
6/15/2009 - Dingell Wants Information on Defense Dept. Contract with Paravant
