Showing posts with label war profiteers. Show all posts
Showing posts with label war profiteers. Show all posts

June 14, 2008

WAR CRIMES DOSSIER: Over the Counter Intelligence

Over the Counter Intelligence
Posted by Philip Mattera on June 13th, 2008

Tim Shorrock, a veteran investigative journalist and a longtime subscriber to the Dirt Diggers Digest, has just come out with a book called Spies for Hire: The Secret World of Intelligence Outsourcing. Shorrock describes how an activity that used to be handled by spooks on the federal payroll has been steadily transformed into a $50 billion Intelligence-Industrial Complex. 

Thanks to the contracting scandals surrounding Halliburton and its former subsidiary Kellogg, Brown & Root, the public learned of the extent to which the Pentagon has turned over routine functions to private military companies. The outrageous behavior of Blackwater has highlighted the use of mercenaries to protect U.S. diplomats and other VIPs in Iraq.

Shorrock shines a light on another group of corporations that are carrying out a more sensitive function that most people have no idea is being handed over to the private sector. Careful readers of the revelations concerning abuses at the U.S.-run Abu Ghraib prison in Iraq would have learned that interrogators alleged to have abused detainees included civilians employed by a company called CACI. But that is only the tip of a lucrative iceberg, Shorrock shows.

For example, he writes, more than half the people working at the super-secret National Counterterrorism Center in Virginia are employees of companies such as Science Applications International Corporation ( SAIC ), BAE Systems and Lockheed Martin. The Center’s terrorist database is maintained by The Analysis Corporation, which subcontracted collection activities to CACI.

Since 9/11, Shorrock says, the Central Intelligence Agency has been spending 50-60 percent of its budget (or about $2.5 billion a year) on contractors—both individuals and companies. At the CIA and its sister spook agencies: “Tasks that are now outsourced include running spy networks out of embassies, intelligence analysis, signals intelligence (SIGINT) collection, covert operations, and the interrogation of enemy prisoners.”

Shorrock devotes an entire chapter to Booz Allen Hamilton, known to most people as a management consultant for large corporations but which pioneered the intelligence outsourcing industry (though it recently agreed to sell its federal business to the Carlyle Group). When Mike McConnell, a former Booz Allen executive, was named by President Bush as Director of National Intelligence, it was the first time, Shorrock notes, that a contractor was put in charge of the country’s entire spy apparatus.

Spies for Hire has much more to offer that cannot be adequately summarized here. I recommend that you read it in full. But let me let also note that profiles of some of the intelligence contractors discussed by Shorrock—such as CACI and ManTech International—can be found on the Crocodyl wiki to which I contribute. Also note that the updated edition of Jeremy Scahill’s valuable book Blackwater , recently issued in paperback, has a discussion (p.453 forward) on the mercenary company’s move into another form of privatized intelligence—a product called Total Intelligence Solutions that is designed to bring “CIA-style” services to Fortune 500 companies.

http://dirtdiggersdigest.org/archives/60

Dirt Diggers Digest is written by Philip Mattera, director of the Corporate Research Project, an affiliate of Good Jobs First.

See also feature articles by Tim Shorrock on CorpWatch.org:

Domestic Spying, Inc.

QinetiQ Goes Kinetic: Top Rumsfeld Aide Wins Contracts From Spy Office He Set Up 

Carlyle Group May Buy CIA Contractor: Booz Allen Hamilton





May 16, 2008

Was U.S. Private Security Firm Spying for Kazakh Government?

Harpers
Posted: 2008-05-15 17:49:57

That’s the question raised by this terrific Wall Street Journal story. The firm is GlobalOptions, an extremely well-connected company run by, among others, former FBI and CIA officials. The Kazakh government apparently retained GlobalOptions to monitor, and possibly seek to derail, a Justice Department investigation into James Giffen, an American oilman who is suspected of paying tens of millions of dollars in bribes to President Nursultan Nazarbayev.

Dariga Nazarbayeva, the Kazakh president’s powerful daughter, reportedly lined up the services of the private-security firm. (I met Dariga a few years ago at a reception at the Washington offices of GlobalOptions. She invited me to visit Kazakhstan and told me that if I took her up on the invitation I was certain to meet some beautiful local women. Quite a strange encounter.) In addition to being extremely “murky” in its operations, GlobalOptions was also (as I reported a few years ago) an Iraq war profiteer.


March 13, 2008

Best of today's items - Iraq for sale

Hard day today.

I am GLUED to marketwatch, as I knew I would be. Reading the comments posted over there is the BEST.

But of course the world of electioneering continues on unabated in the US, and here in Canada, we are gearing up for a weekend of ACTION as our Parliament acts like spineless jellyfish in a world gone mad. So PLENTY of reading.

This the best item I ran across so far today. It is SO true. All of it.

Kerry Candaele

Posted March 13, 2008 | 09:42 AM (EST)










When I first met Ben Carter by telephone in January of 2006, he was somewhat of a lone voice shouting into an empty stadium. He had been working for KBR -- a Halliburton subsidiary that had billions of dollars worth of government contracts in Iraq -- as a water contamination specialist. I was working with Robert Greenwald's Brave New Films on a documentary film (Iraq For Sale) about war profiteering companies who used the war as a way to line their pockets with gads of tax-payer cash for such things a bag of washed laundry at $100 a pop, or $45 for a six pack of Coke.

The war had been outsourced, privatized, and the likes of Kellog Brown and Root were not so privately robbing the country blind with cost-plus contracts. Based on this bright idea, the more a company spent, say, on that Hummer for the boss running the ice cream concession for the troops on leave in Kuwait, the more that company made. Or rather, and looked at from the publicus side of the ledger, the more the taxpayer paid.


Back in early 2006, Ben was talking to anyone who would listen about how he had discovered contaminated water on at least three Army bases in Iraq, water supplied by KBR, with the kind of stuff in it that you have to magnify to convince yourself it could kill you. But few people were listening, and certainly not the executives at Halliburton/KBR to whom he reported the problem. At the time, Halliburton said there is ``no evidence to substantiate allegations made by these former employees.''

But, as there is a fairly crisp logarithm about the Iraq War in all it's facets, namely, that every problem having "no evidence to substantiate it" eventually finds that the evidence does point to the problem having been real, Ben Carter, of course, has now been vindicated.

A just released Pentagon report by the Inspector General maintains that "soldiers experienced skin abscesses, cellulitis, skin infections, diarrhea and other illnesses after using discolored, smelly water for personal hygiene and laundry [remember that $100 bucks] at five U.S. military sites in Iraq." And that KBR's water quality "was not maintained in accordance with field water sanitary standards."

Ben Carter has been vindicated, but it took a hard slog. In Ben's case, the documents confirming his assertions were not shredded, but only hidden from sight, denied a hearing. And even as the evidence is laid out before them, KBR executives continued to claim that their hands, if not those of the soldiers they poisoned, are clean.

For Ben Carter, who lost a twenty-year old son just prior to joining the KBR water crew in Iraq, the emotional connection with the men and women he was supposed to be protecting--not from IEDs, but from one-celled animals--was instant and profound. "I hadn't anticipated seeing him in a lot of the marines' faces.These marines and army soldiers, they're just kids. 19, 18, 20 years old. And I could see in their eyes that they've got a lot to learn. And they trust, but sometimes that trust isn't what they expect. They trust that when people are there to do what they're getting paid much more than the young marine's getting paid, they trust that job is getting done. And they're not wise enough to the world, to the corporate world especially, to know that that trust doesn't matter when it comes to money."

There's that algorithm again. If the Bushies say trust us and KBR with your money and your lives, best to put your hands in your pockets and head in the opposite direction, and fast.


As we see with this Inspector General's report, often the evidence for malfeasance winds it way to the public ever so slowly. So it just might be that before your day of reckoning, before it is revealed that what you believe to be true is in fact true, you could be broke, have died waiting, or both.

Iraq was for sale, and it still is. The missing and ripped-off billions in this three-trillion dollar war, are now making their entrance into public consciousness, meandering toward their public hearing, as evidence to be weighed into the balance sheet of this awful and unnecessary act of imperial hubris.




February 13, 2008

MR. HUMAN RIGHTS SOROS buys $62 million Halliburton shares


Soros buys Halliburton | FP Passport

Halliburton. The Halliburton shares reportedly went for an average purchase price of $31.30 a share. That puts Soros' total investment in Halliburton at ...
blog.foreignpolicy.com/node/3776 - 27k - Cached - Similar pages - Note this

George Soros: George Soros Buys 2 Million Shares of Halliburton

5 Mar 2007 ... Nothing says Bomb Iran like markets wizard George Soros plunking down million for a nice chunk of Halliburton stock The.
wonkette.com/politics/george-soros/george-soros-buys-2-million-shares-of-halliburton-241746.php - 40k - Cached - Similar pages - Note this

Soros makes Halliburton stealth buy

Billionaire George Soros has quietly invested $62 million in the purchase of more than 2 million shares of Halliburton, the major government contractor ...
www.worldnetdaily.com/news/article.asp?ARTICLE_ID=54532 - 28k - Cached - Similar pages - Note this

Soros bought CVS, Rite Aid, Halliburton in Q4 | Deals | Regulatory ...

Soros also added 1.9 million shares of Halliburton (HAL.N: Quote, Profile, Research) and 1 million shares of Take-Two Interactive Software (TTWO. ...
www.reuters.com/article/governmentFilingsNews/idUSWAO00006720070214 - 78k - Cached - Similar pages - Note this

Soros Buys 2 Million Shares of Halliburton | Drudge Retort

According to papers filed with the SEC, in the fourth quarter of 2006 George Soros purchased nearly 2 million shares of Halliburton. The Halliburton shares ...
www.drudge.com/archive/91300/soros-buys-2-million-shares-halliburton - 98k - Cached - Similar pages - Note this

George Soros Buys Halliburton Stock - The New Editor

I think Halliburton has between 400-500 million shares outstanding. ... Soros's Halliburton purchase has already achieved its objective: getting people ...
www.theneweditor.com/index.php?/archives/5332-George-Soros-Buys-Halliburton-Stock.html - 73k - Cached - Similar pages - Note this

HolyCoast.com: Soros Investing in Evil Halliburton

Soros Investing in Evil Halliburton. If you ever have the misfortune to read ... will see a problem with accepting money earned off Halliburton shares?" ...
holycoast.blogspot.com/2007/03/soros-investing-in-evil-halliburton.html - 32k - Cached - Similar pages - Note this

Olbermann Watch - MSNBC's Countdown with Keith Olbermann: OlbyPal ...

I wonder if George Soros purchase of $2 Million Shares of Halliburton is at all connected with Halliburton changing it's headquarters from the U.S. to Dubai ...
www.olbermannwatch.com/archives/2007/03/olbypal_soros_b.php - 76k - Cached - Similar pages - Note this

The 2008 Elections: George Soros Purchases Two Million Shares of ...

2 Mar 2007 ... George Soros has purchased recently two million shares of Halliburton. “The Halliburton shares reportedly went for an average purchase price ...
www.rushlimbaugh.com/home/daily/site_030207/content/01125107.guest.html - 45k - Cached - Similar pages - Note this

SFGate: Blogs: The Ross Report : George Soros: Anti-war war profiteer?

Soros Fund Management ... in late 2006 .. bought 2 million shares of Halliburton, whose KBR unit is the military's biggest Iraq war contractor. ...
www.sfgate.com/cgi-bin/blogs/foreigndesk/detail?blogid=16&entry_id=14721 - 73k - Cached - Similar pages - Note this


October 04, 2007

PASS ME THE POISON!!

Uranium profit$ just for YOU!!

Killing your$elf for money!!

A very helpful URL


Going Nucclar!!

(and they don't list the uses for weapons)


"But here’s what most analysts don’t understand… Where there’s copper, there’s uranium – at least 50% of the time…


This Precious Commodity Is About to “Go Vertical”

The pandemic shortage has just broken through 60 million pounds, shattering record highs... Now it’s about to rocket faster than any commodity in modern history...

Here's how to safely use this intelligence to make 2,689% starting next Tuesday...

Dear Reader,

You’d have to go back 63 years to see a world as starved for commodities as it is today…

China, India, Brazil, Mexico – even the U.S. and Japan – are outstripping reserves as fast as they can be produced. And the global bonanza is getting more intense by the day…

In just over two years alone, copper’s shot up 159%… Aluminum is up over 75%… Zinc has popped 302%… Nickel’s jumped 206%… Oil’s climbed 111%.

Even lead has spiked 211% in the past 12 months, as China devours every available ounce to feed its ravenous factories…

Yet right now, one commodity is about to climb faster, longer and steeper than any of these. It’s a commodity that’s starting a breakout that could quadruple in price in the short run, driving it up another 426%. And handing investors an opportunity to multiply their money by 25 times or more…

You see, right now every industrialized country on the planet is scrambling to get its hands on this one precious commodity.

Demand, as you’ll see, is unparalleled in history…

And yet there’s little supply to go around…
A recent report from the Asia Pacific Foundation of Canada forecasted a 45,000 metric ton shortage in the near future that could wipe out 16% of the world’s power for over six monthsi…
In the past 12 months alone, the supply of this precious has already fallen short by 60 million pounds. And production is limited for years to come. The world’s leading energy association estimates that it takes eight years for new mining and production of this fuel to get “online” and ready for power plants across the globe.

To put it bluntly, investors who understand the size and scope of this situation are about to be rewarded handsomely – and soon…

That’s because this fuel is in such demand – and is so powerful – that it’s about to do what oil did for 127 profit-filled years – power global growth for the coming era.

After all, oil fueled the Industrial Revolution, two world wars, the age of automobiles, the age of consumer goods and global transportation. It even created the modern middle class…

In the last three generations alone, oil turned every $1,000 invested into $1.26 million.

And now this one fuel is about to do the same thing…

It’s coming with such force that even Big Oil has quit investing in – of all things – oil. (You’ll see why in a moment.)

Gains will be nothing less than astounding, exceeding 2,689% or more in the coming months… Enough to turn $10,000 into over $250,000… Or fund a comfortable retirement in the Bahamas over the next 34 months… Or the freedom to live anywhere in the world you choose.

This special briefing will show you how to capitalize on this situation and get a stake in this runup now, long before the investment banks and hoards of “retail” investors start pouring their bankrolls back into commodities – and pushing the price up even faster…

Fact is, this boom is gaining such force and inevitability, that there’s little that can stop it.

Let me show you why this is happening at such breakneck speed…


The Cleanest Fuel on Earth Is Ramping Up Fast

You see, the fuel I’m talking about is the one used to power electric plants worldwide. It’s not oil or natural gas, it’s uranium. Investors who understand the supply-gap of this fuel are about to be in for quite a ride.

The reasons are simple… China alone is adding 30 new nuclear power plants… BusinessWeek calls it the “largest buildout” in the history of energy.

But even that’s a drop in the bucket…

According to a report titled, The Future of Nuclear Power, put out by a blue-ribbon commission headed by former CIA director John Deutchii, China will require the equivalent of 100 more full-scale nuclear plants to meet its growing power needs.

Already, the People's Republic is locking up major uranium deposits in Australia, which holds 40% of the world's minable oreiii.

That’s a powerful tip-off from a government that plans 100 years into the future…

The Surge For Uranium Is Pushing the Breakout…

A whopping 440 power plants in 36 countries now depend on uranium to run steel plants, auto assembly lines, mass transportation, and thousands of factories. And that doesn’t even include the “off the record” users… Consider that:

56 countries operate 284 research reactors as well… Add to that another 220 active power ship and submarine reactors in operation. Most analysts never even stop to consider these “others.”

In addition to the boom in China, 30 new nuclear reactors are under construction worldwide – and 74 more are “firmly planned,” according to the World Nuclear Organization. And those numbers don’t include the fact that:
  • Japan wants to add 11 new reactors
  • India plans on building at least 20 more
  • And Russia is shooting for 42 more
In the U.S., 104 nuclear plants are in operation, with a whopping 21 new plants being proposed.

15 reactors in the U.S. alone have been granted license to extend their operating lives from 40 to 60 years... The existing 85 other plants in the U.S. are expected to apply for the same extension.

Already, France gets three-quarters of its power from nuclear – and actually sells electricity to neighboring countries.
According to USA Today:
Finland is building a nuclear reactor to open in 2010... Switzerland has lifted a moratorium on new plants... Poland has agreed to help build a plant in Lithuania... Belarus starts construction on a new plant next year.

“Europe,” says USA Today, “is poised to begin a new nuclear age, reversing two decades of policies.
But even this is just a small piece of the puzzle. Right now 440 reactors worldwide provide 16% of the global energy. Yet what most analysts don’t realize is this: Another 284 reactors are used in research and power ships.

Demand is growing faster than reason can even comprehend – over 150 million pounds a year.

What’s more, the effort to reduce our “carbon footprint” and stop global warming has taken over the globe…

Given that uranium is the cleanest, most powerful source of energy in the world, it’s dominance remains unchallenged.

USA Today reports that:
“Nuclear power creates virtually none of the pollution that causes climate change and delivers electricity cheaper than other forms of generation do.iv”
Even Greenpeace founder Patrick Moore backs uranium when he says:
“Nuclear energy is the only non-greenhouse gas-emitting power source that can effectively replace fossil fuels and satisfy global demand.”
Yet if that weren’t enough, consider this:

Not one single ounce of uranium comes from the Middle East…

Or any other country with unstable governments, social unrest, maniacal dictators, or greedy, monopolizing organizations like OPEC…

Fact is, the world is ready to stop feeding OPEC and countries like Venezuela vast quantities of cash – over $800 million a day… The same countries set on destroying our free societies.

Instead, the lion’s share – a full 51% – comes from Canada and Australia… Both friendly, U.S.-loving, free-trade partners with America.

It’s one of the reasons that the Department of Energy is asking lawmakers for $875 million to supercharge its existing nuclear programs in 104 reactors immediatelyv…

And yet, here’s what investors need to know: The supply of uranium worldwide is severely shortvi…
Reactors worldwide have used up nearly twice the output of all the uranium mined in the world in the last 12 months alone…
The U.S., China, France and key industrialized countries have been living on the razor’s edge of dwindling reserves.

Even so, uranium is still dirt-cheap. At $150 a pound it’s unreasonably low… At $200 a pound it’s a steal… At $300 it’s bargain…


*snip*

Why “Big Oil” Is Cutting Back – On Oil

In the 1980s OPEC, the powerful coalition of oil producing countries, squashed the movement to alternative energy.

It was easy back then. As the threat of “new” energy gained momentum, OPEC just flooded the market with oil and dropped the price. Within a year, every alternative was forgotten. And Big Oil’s dominance remained strong for nearly three more decades.

Yet today, OPEC can’t crush the worldwide migration from carbon fuels with low prices. China’s demand is too great. And in a twisted irony, those high prices and government initiatives are sealing the fate for big oil.

Lynn Westfall, Chief Economist at Tesoro, says: “If you were to ask us to build a brand new refinery anywhere in the world, I would tell you you’d be lucky to have it up and running in six or seven years. And then you’d need another 10 to 15 years at today’s margins to pay it back. Building a new refinery is a 20-year bet....”

It’s a bet big oil companies are not willing to take. And Congress is in the process of making sure…

The Energy Efficiency Promotion Act, now in the Senate, is all but set to crush oil for the long term. Add to that the administration’s goal to reduce gas consumption by 20%, and Big Oil’s running scared. Especially with the huge subsidies for alternative energy proposed by this bill.

“Why would I invest in a refinery…?” says Chevron’s vice chairman, Peter Robertson…

“Should I make billions of dollars in new investments that are going to be stranded 10 years down the road,” says Bill Holbrook, from the National Petrochemical and Refiners Association.

And it shows. In the first quarter of this year, ExxonMobil’s profits increased by nearly a billion dollars, and yet investment in production and exploration went down 10.4%.

Exxon spent nearly two times the money on stock buybacks (a record $8 billion in three months) than it did on production, leading analysts to ask: “Has the future of uranium sparked this short-term profit grab?”

Much more on the link provided above

September 05, 2007

* Company Focus 8/29/2007

Military contractors that set up utilities, prepare food or make
bulletproof vests are getting a big boost from the conflict. Here's who's
getting the most money.

By Michael Brush

In a few weeks, Gen. David Petraeus and the Bush administration will
report to Congress on the progress of the U.S. military's troop surge in
Iraq.

But some of the war's winners are already clear: military contractors
who supply everything from bodyguards to bombs, clean socks to
ready-to-eat meals. "For the companies involved, this has been a real gravy
train," says William Hartung, who tracks defense spending for the New
America Foundation.

The White House has proposed military spending of $647 billion in 2008.
Adjusted for inflation, that would be the highest level since World
War II -- topping even expenditures during Vietnam and the Reagan years,
calculates Hartung. The current request for Iraq-related spending for
2008 is $116 billion, which would raise total Iraq war spending to $567
billion.

Who's getting all that money? Sometimes it can be difficult to tell.
"There isn't good visibility on where the money goes," says Steven Kosiak
of the Center for Strategic and Budgetary Assessments. But you can get
a snapshot of who's been getting a good chunk of the Iraq-related
spending in two ways.

- Talk back: What's your view on companies that profit from the Iraq
war?

The first step is to scour a vast database of more than $400 billion in
annual government contracts, more than 70% of which are from the
Department of Defense. It's called the Federal Procurement Data System. I
turned to a private contractor of my own, Eagle Eye, for some (free)
expert assistance in navigating the database.

Eagle Eye mined the database for all Iraq-related contracts from 2003
through 2006 (the most recent year for which numbers are available).
That catches everything from spending on base maintenance and bulletproof
vests to ammo and combat boots. We tallied the numbers to find the top
10 companies out of thousands of contractors.

The second step is to look at the Pentagon's own budget to see which
companies are building the major weapons systems that support the war in
Iraq.

** The Top 10 It's no surprise that KBR Inc. (KBR, news, msgs), a
division of Halliburton (HAL, news, msgs) during the years we examined, tops
the first list, compiled by Eagle Eye, with $17.2 billion in
Iraq-related war revenue for 2003-2006. KBR is one of the largest construction
and energy field-service companies in the world. It has a long history
of collaborating with the U.S. government on war-related construction.

- Videos: Recent news on Halliburton

In Iraq, KBR has been working on base construction and maintenance,
oil-field repairs, infrastructure projects and logistics support. KBR got
about a fifth of its revenue from the Iraq war in 2006, according to
our calculations.

"We are proud to serve the troops," says a KBR spokeswoman. "We are
providing the troops with essential services and the comforts of home that
allow them to stay focused on the dangerous and important missions
they face daily."

Continued: The No. 2 slot

But why does a private-equity shop called Veritas Capital Fund take the
No. 2 slot? That's easy. It specializes in investing in defense and
aerospace companies. So Veritas owns a portfolio of companies -- and has
a stake in others -- that pull down big Iraq-related contracts.

DynCorp International (DCP, news, msgs), which Veritas bought in 2005
and spun out last year, offers security services and police training, as
well as logistical services. Veritas' McNeil Technologies provides
interpreter and translation services to the military and U.S. government
agencies in Iraq. Another of its companies, Wornick, supplies military
rations.

It's also no big surprise that U.S.-based companies like Washington
Group International (WNG, news, msgs), Fluor (FLR, news, msgs), Perini
(PCR, news, msgs) and Parsons are on our top 10 list. They've landed many
of the contracts to restore, repair and maintain oil fields, power
plants, schools, public water systems and military bases. But the award of
contracts to build the U.S. Embassy in Baghdad to First Kuwaiti General
Trading & Contracting left many analysts scratching their heads.

Environmental Chemical does munitions disposal, while International
American Products sets up systems that deliver electricity to military
camps. L3 Communications (LLL, news, msgs) offers security screening
services, linguists, training and law-enforcement services, and some
equipment replacement. 10 companies making the most in Iraq* (millions of
dollars)Rank CompanyAmount


*Goods and services contracted specifically for Iraq. Source: Eagle Eye


Two companies that have seen their revenue shoot up the most in the
ongoing military buildup -- largely because of Iraq-related spending --
are Armor Holdings and Renco, according to Hartung's calculations. They
don't make our list because their overall defense-related revenue is too
small. But they have done phenomenally well.

Armor Holdings, which sells vehicle and personnel armor, saw
defense-related revenue shoot up 2,747% between 2001 and 2006, to $634.9 million.
Armor is now a division of BAE Systems (BAESY, news, msgs).

Renco, which makes the extra-wide all-terrain vehicle known as the
Humvee, saw Defense Department revenue rise 1,260% over the same period, to
$1.9 billion.

** Misspent funds Not all of the Iraq-war money is well spent. "Because
of the urgency of the war, a lot of these contracts have been subject
to less scrutiny," says Hartung. Another problem is that the war has
been funded outside of the regular defense budget process. Instead, it
gets funded through "emergency" spending bills called supplementals,
which offer much less detail and get less scrutiny on Capitol Hill.

Hartung believes we've only seen the tip of the iceberg in allegations
of fraud and corruption related to Iraq war spending. "Congress is
starting to look into it, but it has not yet gotten down to specific
questions," says Hartung.

Details of wrongdoing are being uncovered by the Office of the Special
Inspector General for Iraq Reconstruction, and you can also find
summaries of misconduct here.

** Hidden winners Of course, there's a vast collection of military
hardware and technology from fighter jets and naval vessels to spy
satellites that are used in the Iraq war effort. But they're paid for by the
broader Pentagon budget, so they won't show up in a scan of the federal
procurement database for Iraq-related spending.

To see who has benefited from the underlying buildup in defense
spending under the Bush administration for the Iraq war and other anti-terror
and defense efforts, I calculated who got the most in Department of
Defense contracts from 2002 through 2006. You can see the top seven in my
second chart.U.S. Department of Defense contracts* (billions of
dollars)

*More than $25,000 for any field of operation. Source: Department of
Defense

While all of these companies have benefited from the Bush
administration' s defense spending ramp-up since the terror attacks of Sept. 11,
2001, not all are equally exposed to the Iraq war effort, says defense
sector analyst Paul Nisbet of JSA Research.

In addition to ships and Gulfstream planes, General Dynamics (GD, news,
msgs) makes ground vehicles and ammunition, so it generates a fair
amount of revenue directly from Iraq war spending. But Lockheed Martin
(LMT, news, msgs), which is working on next-generation military aircraft
and also makes military electronics and satellites, has little direct
exposure to the war, says Nisbet. Neither does Northrop Grumman (NOC,
news, msgs), which makes ships designed to last three decades or more.

- Videos: Recent news on Lockheed Martin

Of all the companies on my second list, KBR saw some of the biggest
revenue gains from the Iraq war. It was No. 37 on the Defense Department's
top-100 list of military contractors in 2002. By 2006, KBR had climbed
to No. 6.

Michael Brush

At the time of publication, Michael Brush did not own or control shares
of companies mentioned in this column.

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