Blackwater Security–Again
Posted by Bill on March 11, 2008
The Washington Post has a story today about Blackwater Security and the Congressional investigation. Congressman Henry Waxman, House Oversight Committee Chairman, sent a letter to the IRS, the Small Business Administration and the Department of Labor requesting investigations into Blackwater’s employment practices, certifying itself a “small business” and withholding its employment records. It seems that almost everyone of Blackwater’s “security persons” are not employed by Blackwater, but operate totally overseas as “independent contractors.”
Waxman says that “independent contractor” designation, which the government has questioned in the past, has allowed the company to obtain $144 million in contracts set aside for small businesses and to avoid paying as much as $50 million in withholding taxes under Department of State contracts. Of course, Blackwater says that such allegations are “completely without merit.” Oh, yawn, yawn, of course.
and see oversight-letter.pdf
Bill Lowrance
President PIAVA
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