Friday, November 20, 2009

What The.......

The contract for feeding our soldiers in Iraq cost $8.5 billion. That should buy a lot of food, right? Well, not exactly.

Instead of buying food for the women and men who are risking their lives to bring democracy to a foreign country, federal prosecutors say a lot of the money went to overinflated prices, overhead and into the bank of a very wealthy Kawaiti family. Why? Because thay own the company that was awarded the contract.

We owe a debt of gratitude to the whistleblower who brought this to the attention of the U.S. Attorney’s Atlanta office, who handed down an indictment accusing Public Warehousing Company for defrauding the United States. A nineteenth-century war profiteering statute allows the feds to do this.

PWC received the first of two multi-billion contracts from the Army to supply local products to troops at Camp Doha in 2003. The company soon expanded its operations to include subcontractors around the world that provided the military with everything from auto parts to T-bone steaks.

PWC then manipulated its partners operations to enable PWC to charge the U.S. government more and pocket the difference. They did this by making suppliers use consolidation centers that added overhead costs and manipulating packaging to increase their distribution fees.

My question is, why are we giving contracts to foreign companies?

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