Mercenaries feeding in the Katrina moneypit

"The continuous consolidation of money and power into higher, tighter and righter hands."
--George H.W. Bush (the first federal shakedown)
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Mercenaries in New Orleans
Aah, corporate welfare=Republicans at work
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Photo:
In the Black(water)
Tens of thousands of Hurricane Katrina victims remain without homes. The environment is devastated. People are disenfranchised. Financial resources, desperate residents are told, are scarce. But at least New Orleans has a Wal-Mart parking lot serving as a FEMA Disaster Recovery Center with perhaps the tightest security of any parking lot in the world. That's thanks to the more than $30 million Washington has shelled out to the Blackwater USA security firm since its men deployed after Katrina hit. Under contract with the Department of Homeland Security's (DHS) Federal Protective Service, Blackwater's men are ostensibly protecting federal reconstruction projects for FEMA. Documents show that the government paid Blackwater $950 a day for each of its guards in the area. Interviewed by The Nation last September, several of the company's guards stationed in New Orleans said they were being paid $350 a day. That would have left Blackwater with $600 per man, per day to cover lodging, ammo, other overhead--and profits.

Shortly after the hurricane hit, Blackwater "launched a helicopter and crew with no contract, no one paying us, that went down to New Orleans," says company vice chairman Cofer Black. "We saved some 150 people that otherwise wouldn't have been saved. And, as a result of that, we've had a very positive experience." Indeed. It was only days after the company arrived that it started reeling in lucrative deals.

According to Blackwater's government contracts, obtained by The Nation, from September 8 to September 30, 2005, Blackwater was paid $409,000 for providing fourteen guards and four vehicles to "protect the temporary morgue in Baton Rouge, LA." That contract kicked off a hurricane boon for Blackwater. From September to the end of December 2005, the government paid Blackwater at least $33.3 million--well surpassing the amount of Blackwater's contract to guard Ambassador Paul Bremer when he was head of the US occupation of Iraq. And the company has likely raked in much more in the hurricane zone. Exactly how much is unclear, as attempts to get information on Blackwater's current contracts in New Orleans have been unsuccessful.
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