Think Progress

State Department Hired Corrupt Contractor To Build U.S. Embassy In Iraq

ricepoint.jpg The State Department has come under intense criticism recently for its lavish $592-million embassy in Iraq. The embassy complex will have a staff of 1,000 people and operating costs will total $1.2 billion a year.

At a July hearing, the State Department official overseeing the construction assured Congress that the project was “on schedule and on budget” and bragged about the “extremely high quality of construction.” Yet the cost of the embassy is now expected to be $144 million more than projected and the opening of the embassy, set for September, has been delayed because of severe construction problems.

Today, House Oversight Committee Chairman Henry Waxman (D-CA) wrote to Secretary of State Condoleezza Rice and raised concerns about the “substandard work” done by the prime contractor, First Kuwaiti General Trading & Contracting Company. Waxman’s investigation has uncovered not only poor workmanship — widespread defects in fire detection systems and electrical wiring — but also a past record of corruption that the State Deparment may have purposefully overlooked:

The Kickback Scheme: Wadih El Absi, the managing Partner of First Kuwaiti, “personally engaged” in a $13-million kickback scheme with a major U.S. contractor in Iraq in 2003 “in order to obtain subcontracts.”

Overcharges: Defense Contract Audit Agency (DCAA) documents show that in 2005, First Kuwaiti may have overcharged the government on a subcontract to “provide living containers to the U.S. military.” DCAA found that First Kuwaiti was charging over 260 percent “the median cost charged by its supplier.”

Waxman’s investigation underscores that the State Department’s inability to regulate Blackwater was not an isolated incident. As Waxman notes in his letter, “Based on the information the Committee has received, I do not understand why the State Department would rely upon First Kuwaiti to build the largest embassy in the world. … Increasingly, it appears that the State Department’s efforts in Iraq are in disarray.”

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68 Responses to “State Department Hired Corrupt Contractor To Build U.S. Embassy In Iraq”

  1. Oval12345678 aka James K. Sayre says:

    Ah, your no-bid Bush-Blackwater crime family, hard at work, destroying Iraq, destroying Afghanistan and destroying America…

    American democracy was destroyed and replaced by Bush gangsterism back in December, 2000 with the aid of five Supreme idiots.


  2. The Shadow says:

    This comes as no surpise to me. When I was in the military our seas, the people used to say how stupid the US government was I they were stating it based on things they knew about. Like paying $1000.00 for a chicken the Army killed by accident. This is just why we don’t have money for things at home, we a too busy paying off crooked contractors in Iraq and all over the world. I think Rice should get a raise for screwing this up, don’t you?


  3. upside99 says:

    Oh, Gee! Another corrupt BushCo contractor! My My, and this is from the Repugs? HMMMM!

    Guess the trolls will have a field day spinning this little ditty.


  4. Juan C. says:

    Corrupt?

    They were using kidnapped Philippines, for God´s sake!!!


  5. RUCerious says:

    OK, spelling contest…

    Sauverign

    or

    Suavareign

    or

    Sawvern

    nope, just can’t seem to get the hang of this…


  6. tomazulob says:

    Henry Waxman needs a 10-day week to keep up with all the scandals this absurd administration has produced (intentionally) because the Republican Congress was in on the fix. He has to feel overwhelmed each time another situation arises.


  7. Tweedster says:

    Trolls?

    Who wants to defend the corruption today?


  8. gabriel sutherland says:

    260% is minor compared to the markups reported in Harpers Bazaare.


  9. raynman says:

    Ahhhhh, sweet Democracy at work


  10. Candyce says:

    As a commander here in Iraq, I can tell you without a doubt that corruption and theft occur in just about all contracts here in Iraq. We are being fleeced like you would not believe. I’ve seen it first hand.

    Comment by ARealAmerican — October 9, 2007 @ 1:10 pm

    uh oh, busted. Just how are you able to access TP if you’re in Iraq?

    http://thinkprogress.org/2007/08/31/military-censors/


  11. gabriel sutherland says:

    Do any State Department employees want to serve in the US Foreign Service in an Iraq Embassy with substandard fire protection?

    This is like buying a car without any seatbelts, nor brakes.


  12. Tweedster says:

    Unfortunately, our hands are tied, because corrupt business practices are the Iraqi way.

    Comment by ARealAmerican — October 9, 2007 @ 1:10 pm

    I’m sure Blackwater was relieved that this was the case!

    More info on First Kuwait

    http://www.corpwatch.org/article.php?id=13258


  13. Candyce says:

    Very amateur troll mistake. Good luck next time.


  14. barfly says:

    “So, the American military just has to accept a certain amount of corruption as yet another cost of this war. That is truly the bottom line here.”

    Comment by ARealAmerican

    And “democracy is sometimes messy” was used to excuse the looting that took place after Saddam’s fall. This rhetorical shoulder-shrug dismisses the negative affects to our image of this practice, an “ah, shucks” that just gives the international community more reasons to ignore American propaganda about installing “freedom and democracy” abroad.


  15. DennisRaines says:

    #13-

    Dude. Actually you’re a “dude” on a comments page on a blog you’re trolling.

    A a brighter note, the cost of running the new Iraqi embassy for a year will only cost as much as 1 1/2 days of current war spending there. I’m sure that everything will be okay in 6 months…. or 6 after that. Or after that…..


  16. Clumberfeet says:

    It is now clear this was never was an American liberation or whatever.

    It’s pirates raiding and occupying a land with wealth to steal. The oil companies are falsely flying our American Flag to cover their true banner, the golly roger.


  17. upside99 says:

    Comment by ARealAmerican — October 9, 2007 @ 1:10 pm

    I also saw a lot of corruption on my tour in Vietnam ….BUT, most of it was the US Government, and this piece is about a US-let contract, so your position that it is the Iraqis that are corrupt doesn’t apply.

    NEXT!


  18. Leftside Annie says:

    Wow.

    *WHAT* a surprise.

    Oh, the humanity.


  19. gabriel sutherland says:

    upside99: He didn’t say it was Iraqis that were corrupt. He said that “in Iraq” there is a lot of corruption.

    Iraqis are doing some of the work. But the contracts are managed primarily by organizations from outside of Iraq.


  20. NoOneYouKnow says:

    I hate it when Waxman softpedals Bushco’s crimes: “Based on the information the Committee has received, I do not understand why the State Department would rely upon First Kuwaiti to build the largest embassy in the world. … Increasingly, it appears that the State Department’s efforts in Iraq are in disarray.” Waxman knows bloody well the State Dept. is abetting GOP- and Bushco-oriented corruption. Why not say it?


  21. VerbalKint says:

    I’m usually pretty good at spotting the troll. I don’t think this guy is a troll.


  22. gabriel sutherland says:

    ARealAmerican: Even contracts for construction in the United States have to be redone and reviewed with a fine tooth comb. So poor quality and substandard oversight isn’t an exclusive problem to Iraq.


  23. Juan C. says:

    I’ve seen some horrendously shoddy workmanship over here. It is no wonder the embassy went so far over budget. When you have to re-do work three times, the costs will add up.
    Comment by ARealAmerican

    It certainly has to do with all the professional and highly educated Iraqis that have been killed or have abandoned the country due to the invasion of a military force based on false info.


  24. gabriel sutherland says:

    NoOneYouKnow: They don’t have evidence to support the statement?

    Just a guess.


  25. barfly says:

    “The corruption here is ridiculous. However, there is not a whole lot we can do about it.”

    Comment by ARealAmerican

    What, not Mission Accomplished yet?

    That “cakewalk” we were promised by conservatives is turning into the newest version of the Trail of Tears, with a little Rape of Nanking on the side.


  26. Leftside Annie says:

    And — why does it not surprise me in the least that the REAL American (/snark) among us – the patron saint of Personal Responsibility and Self-Sufficiency “ARealAmerican” — tells us that the corruption is all the Iraqis’ fault and we can’t help it. “It’s just the Iraqi way.”

    Yeah, right.

    Boohoo! It’s the fault of those dirty Iraqis!! We LIBERATED those ungrateful wretches and what do they do?? They CHEAT us!

    Pardon me, ARA, if I’m simply underwhelmed by your …”logic.”


  27. Candyce says:

    I’m usually pretty good at spotting the troll. I don’t think this guy is a troll.

    Comment by VerbalKint — October 9, 2007 @ 1:30 pm

    I don’t think he’s in Iraq, however. He posted on the Obey war tax thread for hours, and never mentioned this little factoid about himself. And when someone asked him if he’d been in the military, he disappeared. I just don’t trust these guys who suddenly create a bio relevant to the topic, like magic.


  28. Nevar says:

    caption:

    “Remember, the contract goes to the highest bidder… yes, you in the back… in the robe and sunglasses…..”


  29. Tweedster says:

    I just don’t trust these guys who suddenly create a bio relevant to the topic, like magic.

    Comment by Candyce — October 9, 2007 @ 1:33 pm

    Amen to that!


  30. The Republic of Stupidity says:

    Wow! The trolls are off the charts here this am…

    ****

    “260% is minor compared to the markups reported in Harpers Bazaare.”

    Comment by gabriel sutherland — October 9, 2007 @ 1:13 pm

    It’s “Bazaar”, not “Bazaare”, but in yer case, “Bizarre” works even better, seeing as “Harper’s Bazaar”… offers the latest news on fashion, makeup, and shopping.

    ****

    “Dude, I don’t know. All I can tell you is that I am sitting here at my desk, just south of Mosul, typing this message right now.”

    Comment by ARealAmerican — October 9, 2007 @ 1:17 pm

    I’d be curious to know what a “military commander” is?????

    Sitting in Mosul, w/ nothing better to do than blog, and using language like “dude”…

    ****

    Yes, and I am sitting at my command post, here on the 3rd moon of Jupiter, aiming our Bonkin Death Ray at Earth…

    Surrender or else, Earthlings!

    BWAHAHAHAHAHAHAHA… youse guys are killin’ me… talk about funny!


  31. Juan C. says:

    Pardon me, ARA, if I’m simply underwhelmed by your …”logic.”
    Comment by Leftside Annie

    It’s racism. Simple.


  32. barfly says:

    More often than not, we just call it “Iraqi OK” (due to their tendency to do everything half-assed) and pay up in order to get some “floose” into the local economy. Sad, but true.

    Comment by ARealAmerican

    And how much “floose” ends up buying weapons to be used against american troops? If one were a terrorist (or supporter) there would be great incentive to become a subcontractor, and get “the floose,” while doing the bare minimum to get it.

    We know how corrupt the police are in Iraq, so it’s natural to assume contractors are also corrupt, for the same factional reasons.


  33. Tweedster says:

    More often than not, we just call it “Iraqi OK” (due to their tendency to do everything half-assed) Comment by ARealAmerican — October 9, 2007 @ 1:17 pm

    Like not getting out of the way when Blackwater convoys show up.

    /sarcasm


  34. barfly says:

    ” Enlighten you libs on the real world.”

    Comment by ARealAmerican

    Care to tackle my last question?


  35. Dave C says:

    Then enlighten us further ARA. What’s your MOS?


  36. Juan C. says:

    Enlighten you libs on the real world.
    Comment by ARealAmerican

    With the real WMDs and crap…


  37. rocks911 says:

    The corrupt working for the corrupt… what we’ve all come to expect from the current administration. Sad isn’t it.


  38. DennisRaines says:

    #22-

    Sorry, but it’s more of the sentiments of “we just gotta live with it” and counting it as part of the budget. You know, I kinda want accountability where it can be had. And besides this is regarding an American contractor.


  39. impeachcheneythenbush says:

    ARealAmerican – considering that the bribe was OFFERED by the subcontractor (First Kuwaiti ..NOT an Iraqi firm) and ACCEPTED by a KBR contractor (and American company), I don’t think you can blame the Iraqis on this one.

    I find it extremely odd that, while you’ve been posting for months, this is the first time that I can recall you’re ever claiming to be military in Iraq. Very odd indeed. Pulling out the big guns here in an attempt to protect your real employer…the State Dept.?


  40. A Patriot Acting says:

    In case anyone on this thread wasn’t aware of ARealAmericans work, check out the Rush thread(11:43 and on). This “commander” in Mosul has got endless hours to kill and chooses to spend them dropping trollshit all over a blog that’s been blocked by the US Army? Not a troll? Sorry commander bullsh@t, you can drop all the GOP talking points you like, just don’t think anyone’s buying that crap around here, dude.


  41. barfly says:

    “If they give money to the terrorists, it is because they are being shaken down, mafia-style.”

    Nice try at dismissing my contention that subs actually fund terrorist activities – which is a huge shot in the foot for the war effort. If you can’t even weed them out of the police and military, it’s a sure thing some are in it for the money – to be used against us. It’s as if some thought the Iraqis had never heard of Judo.


  42. Candyce says:

    This is just reminiscent of those billions of dollars that disappeared in Iraq after being shipped over on pallets. 350 tons worth of money, gone. Down the dark hole – that’s just the way it is! Oh well.


  43. impeachcheneythenbush says:

    As a commander, I am responsible for contracts and projects all across my battlespace. I am very familiar with the contracting process. It is something that I hate dealing with because of the obvious corruption. As an honorable servant of my nation, it disgusts me.

    Comment by ARealAmerican — October 9, 2007 @ 1:40 pm

    If all this is true, then you should send a letter to Rep. Waxman, telling him everything you are aware of. Correct?


  44. The Republic of Stupidity says:

    Enlighten you libs on the real world.

    Comment by ARealAmerican — October 9, 2007 @ 1:43 pm

    Sorry, but you got ***ZERO*** cred, “Commander”…


  45. Buckie Boy says:

    It is called “WAR PROFITTING for JESUS”, the motto of the Fascist Repukian War Mongers.

    Buck Fush


  46. The Republic of Stupidity says:

    that is not how money is transferred.

    Comment by GoTFreedumb — October 9, 2007 @ 1:54 pm

    Don’t bother to argue “facts” w/ this jerk. You only legitmize his “position” by trying to dispprove what he says.

    HE’S A FAKE!!!! Call him a fake and leave him at that.

    Hey, “Commander”… yer a PHONY!


  47. DennisRaines says:

    #59-

    Heh- no because it’s included in the budget, and the American military (and us) just have to “accept it.”


  48. Buckie Boy says:

    NotARealAmerican-
    Do us a favor and don’t bother posting your Fascist Pig Repukian Talking Points till Fall 09′

    Buck Fush


  49. gabriel sutherland says:

    The Republic of Stupidity: Bazzar, bizarre, whatever the spelling, you understand the source.

    They quoted markups as high as 13,000%. That’s why 260% looks decent. It’s still far too high.

    What time is it in Iraq? Evening chow time? You could waste all day trying to determine if this poster is actually in Iraq.


  50. nolo says:

    Ah, your no-bid Bush-Blackwater crime family, hard at work, destroying Iraq, destroying Afghanistan and destroying America…

    American democracy was destroyed and replaced by Bush gangsterism back in December, 2000 with the aid of five Supreme idiots.

    Comment by Oval12345678 aka James K. Sayre — October 9, 2007 @ 1:02 pm

    ~~~~~~~~~~~~

    DING!

    for the edification of estimable
    assembled readership, i’ve taken
    the time to set the entire waxman
    letter — 9 plus pages — in easy reading
    html text right here. it is a gem
    .

    enjoy!

    [oh -- and don't mind the
    occasional troll, here. . .]

    p e a c e

    – nolo


  51. theswan says:

    And so we peons of America just keep paying our taxes so we can support these lavish crooks. How absurd.


  52. nolo says:

    . . .They just don’t want to talk about it. Nobody does.

    Comment by ARealAmerican — October 9, 2007 @ 1:59 pm

    except, of course, reps. waxman, conyers, pelosi,
    and senators leahy, obama, whitehouse, schumer
    and countless others, right — you’re disguise is
    evaporating, here “american” — if you are the miliary
    man you claim to be, applicable military law REQUIRES
    you to formally report all of this to your CO.

    r-i-i-i-i-i-ght.


  53. Leftside Annie says:

    And so we peons of America just keep paying our taxes so we can support these lavish crooks. How absurd.

    Comment by theswan — October 9, 2007 @ 2:03 pm

    And God forbid we use any of that tax money for medical care for sick little kids!!!!! Dayum, some rich Repuke might need a new swimming pool – !!


  54. Dave C says:

    It is 9:04 pm here in Mosul (Iraq has already done the daylight savings turning back of the clocks).

    Comment by ARealAmerican — October 9, 2007 @ 2:05 pm

    Comments like that are a sure giveaway of b.s. For instance, let’s say I want to pretend I’m in Iraq, I start by checking out what time it is while I’m posting. While checking I might find out tidbits like daylight savings stuff. It’s irrelevant to me, and to this discussion, but I notice it on the site so I post it. It’s not the kind of thing that anyone here cares about, nor do we care about the time, it’s just the kind of thing that someone would come across while filling in details of their b.s. story.


  55. Dave C says:

    It’s not the kind of thing that anyone here cares about, nor do we care about the time, it’s just the kind of thing that someone would come across while filling in details of their b.s. story.

    Comment by Dave C — October 9, 2007 @ 2:24 pm

    btw, if you don’t believe me you can prove it to yourself. Google the following?

    current time mosul iraq

    First link to come up is

    http://www.timeanddate.com/worldclock/city.html?n=1052

    Immediately below the details of current time they state when Daylight Savings time begins & ends. No other link I found gives these details, because no one would care. No one, including ARA would care. The time is the time, who cares if it’s daylight savings time or not. Only someone who wanted some credibility would try & flog us with inane details.


  56. barfly says:

    It’s too bad RA decamped. I was going to ask him about this, since he’s supposedly in the North:

    WASHINGTON (Reuters) – The United States cautioned Turkey on Tuesday against making an incursion into northern Iraq after Kurdish rebels launched attacks from there and urged both countries to work together to resolve the conflict.

    Turkish Prime Minister Tayyip Erdogan gave the go-ahead on Tuesday for all necessary measures to be taken against Kurdish rebels, including a possible incursion into northern Iraq, after they carried out a series of attacks.

    But the U.S. State Department warned against such a move.

    “If they have a problem, they need to work together to resolve it and I am not sure that unilateral incursions are the way to go, the way to resolve the issue,” said State Department spokesman Sean McCormack.

    Asked whether Washington had urged restraint on both sides, McCormack said sovereign states had to make their own decisions about how best to defend themselves.

    “We have counseled both in public and private for many, many months the idea that it is important to work cooperatively to resolve this issue,” he said.

    Both the State Department and the White House said the United States was committed to working with Turkey and Iraq to combat the PKK Kurdish rebel group that has carried out a series of attacks in Turkey.

    “It is critically important that all sides involved in this — the Iraqis, the Turks and certainly we will do our part — work to combat terrorism. You just can’t have these kinds of attacks emanating from Iraq and I think the Iraqis understand that,” said McCormack.

    White House National Security Council spokesman Gordon Johndroe would not comment specifically on whether the White House would support Turkey authorizing a possible incursion into northern Iraq, where many rebels from the separatist Kurdistan Workers Party, or PKK, are hiding, calling that a hypothetical question.

    “Iraq and Turkey want to work together on this problem. The most effective and appropriate way is to protect the citizens of both countries,” he said.

    Turkish military officials said Kurdish rebels killed 13 Turkish soldiers on Sunday in fighting in Sirnak province, which borders Iraq.

    Pentagon spokesman Bryan Whitman declined comment on the latest news from Turkey.


  57. barfly says:

    From the article:

    Asked whether Washington had urged restraint on both sides, McCormack said sovereign states had to make their own decisions about how best to defend themselves.

    And if they decide to invade, the US will be standing on the sidelines. Since we invaded Iraq for supposedly the same reason, we would look like world-class hypocrites for objecting to Turkey’s incursion.


  58. impeachcheneythenbush says:

    Believe me, all of our politicians know exactly what is going on over here. They just don’t want to talk about it. Nobody does.

    Comment by ARealAmerican — October 9, 2007 @ 1:59 pm

    Bullshit. Plenty of politicians are trying to talk about it and get information from this administration. Latest?…The State Dept. being complicit in covering up corruption in Maliki’s government.


  59. rocks911 says:

    ARealAmerican,

    Conceited much?


  60. Leftside Annie says:

    103 – The better question to ask, o Captain, is why is she the only one…?


  61. Human Race says:

    “Bush says he is fighting for Iraq freedom..
    Is He????
    what is freedom? what is the definition of freedom?
    define freedom.
    working is not freedom work is in a way slavery.
    even the hebrew slaves earned wages in form of gold,.”

    Comment by GoTFreedumb — October 9, 2007 @ 2:24 pm

    Freedom is for people like you. People like you who sit here and disrespect our troops, men who have more bravery and respect for their friends, families and people they don’t even know. Freedom is for people like you who twist others words and have no education on the matter at hand. You have the audacity to jump to conclusions and assume that ARealAmerican is an imposter? Is that all you have? People like you have the guts to preach about world peace but then in the same sentence talk about ignoring the pain that extremists in Iraq put their fellow people through. Its not America that’s screwed up, its people like you. Oh that’s ok though! I hope I miss-spelled something in here or used slang that you don’t like so that you can ‘use that against’ me. That seems to be all you have.


  62. Serenity Now says:

    Wow! Henry Waxman writes another letter! That seems to be all he is good for.


  63. Human Race says:

    #113 Apparently more than you. That’s ok darling! You should just turn your head. What YOU don’t know won’t hurt YOU. Isn’t that what your main concern is?

    I think you should take some advice; be careful as to how you word things. Perhaps I would not have written #111 had you been aware of your choice of words.


  64. Human Race says:

    CoulterIsamAnn – Thin skinned little b!tch? Nice! The way your speaking shows that you do not have very thick skin. Maybe what I said bothers you because it’s true. Does it pin point you? You’re just upset because you know I am right and what I said hit you like a ton of bricks. Pretty funny how you’re quoting the bible on other blogs. Good ‘Christians’ do not speak the way you do. I slander people that point out my failures? Again, another ignorant person trying to twist someone elses words. Thats not what I said. Do not put words in my mouth.
    You make me laugh. Actually, you have made my day! I hope you can find peace within yourself.


  65. Human Race says:

    Its not America that’s screwed up, its people like you. Oh that’s ok though! I hope I miss-spelled something in here or used slang that you don’t like so that you can ‘use that against’ me. That seems to be all you have.
    Comment by Human Race — October 9, 2007 @ 3:23 pm

    So AMERICA was in charge of the failed Occupation in Iraq?

    You’re a LUNATIC that just wants to BLAME OTHERS for your OWN BAD JUDGEMENT, and UNCHRISTIAN VALUES!!! GROW UP, CHILD!

    Comment by CoulterIsamAnn — October 9, 2007 @ 4:34 pm

    Your response make no sense. A lunatic? I would hardly say so. I support my boyfriend who is in Iraq and all of the men a women over there who are fighting for our rights and the rights of the Iraqi citizens. If the US is so horrible, then go find another country to live in. WE won’t miss you.


  66. Human Race says:

    Also, you’ve been doing nothing but adding in bits and pieces through out all of these postings. Obviously, by what you’ve written, you haven’t paid attention to anything anyone is talking about. You make so sense. Someone should silence you, oh wait, you have the right and the freedom to say what you want. :) joy to you!


  67. upside99 says:

    Your response make no sense. A lunatic? I would hardly say so. I support my boyfriend who is in Iraq and all of the men a women over there who are fighting for our rights and the rights of the Iraqi citizens. If the US is so horrible, then go find another country to live in. WE won’t miss you.
    Comment by Human Race — October 9, 2007 @ 5:03 pm

    I served a combat tour in Vietnam and was not fighting for anyone’s freedom there just like they aren’t fighting for anyone’s freedom in Iraq. This is an ego war and about oil and the military/industrial corporations to get rich.

    I thank your boyfriend for his service and hope he gets out of that BushCo Clusterf@ck alive and intact.




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