New York Times: Fed contracts to Blackwater subsidiaries under scrutiny

The Blackwater security company created more than 30 shell companies or subsidiaries to continue getting goverment contracts after a controversial shooting incident in Iraq, the New York Times reports. At least three of the businesses obtained contracts from the military or the CIA, the Times reports, prompting Senate Armed Forces Committee Chair Carl Levin (D-Mich.) to request that the Department of Justice investigate whether Blackwater misled the government when using subsidiaries to solicit contracts.


The panel this week released a chart of 31 affiliates to Blackwater, which has changed its name to Xe Services. The chart is part of an investigation into government contracting, fueled in part by the shooting deaths of 17 Iraqi civilians by Blackwater guards in Baghdad in September 2007. The company lost its contract to provide security to the State Department in Iraq after the incident.