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Jeremy Scahill, author of Blackwater: The Rise of the World's Most Powerful Mercenary Army reports for The Nation on the shadowy Blackwater's growing foray into the world of private espionage.

The privatization of intelligence has grown dramatically under President Bush, with Washington paying $42 billion annually in private intelligence contracts, compared to just $17.5 billion in 2000. As Scahill points out, it means that 70% of the U.S. intelligence budget is going to private companies, which creates an interesting market for government operatives.

Erik Prince, founder of Blackwater, started Total Intelligence Solutions in April 2006 in order to capitalize on this growing demand for privatized intelligence services:

"Total Intel brings the...skills traditionally honed by CIA operatives directly to the board room," [Blackwater's vice chair Cofer] Black said when the company launched. "With a service like this, CEOs and their security personnel will be able to respond to threats quickly and confidently -- whether it's determining which city is safest to open a new plant in or working to keep employees out of harm's way after a terrorist attack."

As Scahill writes, Total Intel's leadership "reads like a Who's Who of the CIA 'war on terror'":

In addition to the twenty-eight-year CIA veteran Black, who is chair of Total Intelligence, the company's executives include CEO Robert Richer, the former associate deputy director of the agency's Directorate of Operations and the second-ranking official in charge of clandestine operations.

From 1999 to 2004, Richer was head of the CIA's Near East and South Asia Division, where he ran clandestine operations throughout the Middle East and South Asia. As part of his duties, he was the CIA liaison with Jordan's King Abdullah, a key US ally and Blackwater client, and briefed George W. Bush on the burgeoning Iraqi resistance in its early stages.

Scahill points out there are drawbacks to this kind of free-market approach to national security and intelligence:

In Iraq, Blackwater has banked on the idea that it is a sort of American Express card for the occupation. But for the future, Prince has a different corporate model, as he indicated in his speech. "When you send something overseas, do you use FedEx or the postal service?" he asked.

There are serious problems with this analogy. When you send something by FedEx, you can track your package and account for its whereabouts at all times. You can have your package insured against loss or damage. That has not been the case with Blackwater. The people who foot the sizable bill for its "services" almost never know, until it is too late, what Blackwater is doing, and there are apparently no consequences for Blackwater when things go lethally wrong. "We are essentially a robust temp agency," Prince told his fans in Michigan. He's right about that one. A temp agency serving the most radical privatization agenda in history.


23 Comments

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Temp Intel Mercenaries. How nice...

Hopefully, President Obama will quickly put a stop to the wholesale privatization of our entire national security apparatus. This is truly frightening.

Private espionage agencies... private armies. What's to keep us from slipping into a New Feudalism, where financial lords and barons stake out ancestral keeps in beautiful aeries - the Cascades or Sedona, Paris and Ibiza - and dispatch their forces on global assignments, acquisitive... quests? For those of us who don't want a rerun of the 11th century, that wouldn't be a welcome development: There wasn't much representative democracy or freedom of expression in the age of warlords, "chivalrous" though the era might have been. And as we fragment more and more amid a welter of divisions - racial, ethnic, religious, class - can we look forward to endless wars of attrition and bloody crusades? Perhaps our future Grail will be... a Burger King franchise in a peaceful zone. Sweeeet...

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"The people who foot the sizable bill for its "services" almost never know, until it is too late, what Blackwater is doing, and there are apparently no consequences for Blackwater when things go lethally wrong."

With reps like these, how could these middle eastern countries fail to go for the gusto of forced democratization in all it's glory? Such a deal.

As the income gap continues to widen one can only imagine the super rich using these sorts of rent-a-spy and rent-a-military services to maintain their positions.

Who am I kidding, what could possibly go wrong?

Evangelically yours (in a completely heterosexual way),
Super J.

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The beauty part of this is that it is all funded by our tax dollars, so private companies can spy on us, "police" us in case we get, you know, uppity and its all done with money we pay. Its a win win.

I have little doubt the Neo-cons will use Blackwater for missions even when they are out of Government. I can't believe this has been allowed to happen and Blackwater is allowed to exist.

It will be their own private military funded with all of those billions of dollars that went missing in Iraq.

they are an insidious outfit. just imagine all the loyalty they'll instill thru police depts across the country, once their 'training facilities' get up and running. hookers, booze, gunsgunsguns for all those rootin' tootin' pistol-packing he-men who wear the blackwater insignia. hell, it's better than free viagra.

What a surprise Republicans don't want big government they want big government subsidized businesses to work not for the purpose of achieving a greater profit not a better outcome.

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Dear DW13,

You're talking fascists, not republicans. Nowadays they're the same thing.

Those familiar with the CIA recognize that there has always been a institutionalized rogue element in the special operation branch, the "cowboy culture". Prince and his Republican confederates have figured out how to free that element from governmental constraints. We pay for their training, and they use it to their own profit - it is government-subsidized mercenaries.

What mechanisims are in place for supervising and policing their actions? Next to none.

Will they be threatened by the election of a Democrat? Yes.

Might they undertake, on their own, the "dirty tricks" they've long practiced to interfere in other democratic elections? Yes.

Blackwater is a viper, and we've installed it in our living room.

It is clear to me that this administration has no concept of "public interest" at all. Privatizing the collection and analysis of intelligence means giving up ownership of the resulting product. How is that in the best interest of the nation?

The government could be held hostage - at the whims of Corporate America. A Corporate America that has increasing ties and obligations to governments across the world, and whose only true loyalty is to the bottom line. There is a huge monetary incentive for these companies to become information brokers. What if our enemies pay more for the information? Would we ever know?

This is some seriously messed up shit. Who can possibly think this is a good thing? I'm just blown away.

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All praise the efficient free market!

So what happens when Blackwater finds higher bidders from China and the House of Saud?

Ok, someone please make it clear to me. Just how in the hell does someone get to start their own private military?

Maybe Eric Prince can appear on Donny Deutsch's 'The Big Idea' show someday to tell his story creating his own private army.

Easy! Find someone or something - individual, corporation or government - that needs the services of an armed force and has pockets deep enough to pay for it. The rest - including the bloodletting - is paperwork.

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And as usual in this kind of "Blackwater" affair, Congress will sit on its ass and do nothing until it's too late.

Additionally, anyone who thinks Blackwater will not be hired by corporations to spy on Americans, whether they be company employees or simply protesting citizens, needs to think again.

As a protestor at the G8 meeting in Brunswick, Ga., I personally saw the U.S. military there in uniform taking pictures of the protestors.

Unfortunately, the number of protestors was small, and one out of every nine "protestors" was an undercover person.

My government fears me.

You don't have to be a blind conservative not to see it, just an ignorant one to deny it.

This is another scary nightmare we are facing....private for profit based armies exempt from laws and penalties...including a spy branch...heaven help us!

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Give them time enough and one day these private militaries will be fighting on opposite sides.

Think about it.

You don't have to be a blind conservative not to see it, just an ignorant one to deny it.

Considering creating al Qaeda to fight the Russians in Afghanistan and backing and arming Saddam Hussien against the Iranians didn't come back to bite the US in the ass...

Ed: Let's see...no financial accountability (spy stuff), vast profits at taxpayer expense, no checks and balances. Sounds like the ideal business. That's what I want my kid to do. We don't need no stinkin' congress.

Ned: Private armies, controlled by warlords. Even in the US because the warlords smile and wear suits with spiffy ties. And flag lapel pins. If all the private armies have one boss, what do you have? A dictator with secret police.

Decisions decisions. Profit or Constitution? That's a real toughie.

I think you have just described Bush's "Ownership Society".

In the UK they have a "Shadow" government. These are members of the opposition party, that are ready to assume leadership (cabinet) positions when they win an ELECTION.

This looks like a government in waiting. Just looking for an opportunity, a moment of our ambivolence, a weekening in representative democracy, to take over. In Latin America they call that, a Junta.

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Very worrisome. Intel is one of those things where the idea that the people doing the work are devoted first to making a profit, rather than to the welfare of our country, is just scary.

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