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January 29, 2008

Cronyism in Iraq gets major exposure… except for a few pertinent points

From James Glanz at the NY Times:

Rebuilding failures by one of the most heavily criticized companies working in Iraq, the American construction giant Parsons, were much more widespread than previously disclosed and touched on nearly every aspect of the company’s operation in the country, according to a report released Monday by a federal oversight agency.

Previous reports by federal inspectors and by news organizations identified numerous examples of construction failures in Parsons Corporation projects in Iraq, including dozens of uncompleted or shoddily built health care clinics and border forts, as well as disastrous sewage and plumbing problems at the Baghdad police academy that left parts of it unusable.

But the new report, by the Special Inspector General for Iraq Reconstruction, an independent federal agency, examined nearly 200 Parsons construction projects contained in 11 major “job orders” paid for in a huge rebuilding contract. There were also three other nonconstruction orders. The total cost of the work to the United States was $365 million.

The new report finds that 8 of the 11 rebuilding orders were terminated by the United States before they were completed, for reasons including weak contract oversight, unrealistic schedules, a failure to report problems in a timely fashion and poor supervision by the United States Army Corps of Engineers, which managed the contracts.

“There was a confluence of shortfalls here,” said Stuart W. Bowen Jr., who leads the inspector general’s office. “It was obviously an unworkable plan.”

In response to the report, a spokeswoman for the company, Amber Thompson, released a statement saying, in part, that “Parsons put forth its best efforts to simultaneously build or refurbish hundreds of facilities across Iraq.”

“We did so under an extremely hazardous security environment while simultaneously contending with constantly changing demands by government officials regarding what they wanted, where and for how much,” Ms. Thompson said.

The work, Ms. Thompson said, was carried out with other challenges, such as a United States requirement to work with Iraqi contractors whose capabilities often fell short. “Despite the challenges we faced, Parsons completed many of the required facilities” and completed most of the work on many others, Ms. Thompson said.

But William L. Nash, a retired Army major general who is a senior fellow at the Council on Foreign Relations, said the report filled out a tapestry of failure illustrating that American military and civilian officials in Iraq failed to absorb lessons learned in the 1990s about how to carry out rebuilding in conflict zones.

“To me,” Mr. Nash said, “it further illustrates the disconnect between the military and the C.P.A.,” or the Coalition Provisional Authority, the American administrative authority after the 2003 invasion.

From 1990 through 2002, Parsons was the 10th biggest political contributor among postwar corporate contractors.

And coincidentally, the CEO of Parsons, James F. McNulty, stepped down 4 days before this report was released, though he continues as board chair. Also, beyond the usual revolving door between his 24 years in the Army and the military industrial corporate world McNulty stepped into for fun, profit, and deficient performance at taxpayer’s expense, there’s another group of cronies McNulty belongs to.

Take a look at this list.

That would be the group of neocons, corporate moguls and celebrities united to support John McCain’s coronation as the next Republican crony to ascend to the throne of military-industrial primacy: the US Presidency.

That would be the same McCain promising us more wars, which would also mean more rebuilding contracts offered to deficient contractors on the public dole.

“Shoot first, overspend later” sounds like a more apropos campaign slogan for Mr. Straight Talk. Elect him if you want more of the same.

One Response to “Cronyism in Iraq gets major exposure… except for a few pertinent points”

  1. Mark Adams Says:

    In checking out McNulty’s Parson’s Corp, we find C. Michael Armstrong on the Board of Directors.

    Armstrong is chairman of the Board of Comcast Corporation, the largest cable company in the United States.

    Prior to serving as chairman, C. Michael Armstrong served as chairman of the board and CEO of AT&T Corporation. At AT&T, he led the communications services company, with more than 80 million customers, 120,000 employees and $51 billion in revenues. Armstrong joined AT&T from Hughes Electronics, where he had been chairman and CEO for six years.

    So you know, Hughes Electronics is now Raetheon, and is one of the biggest players in the Star Wars anti-missile defense systems boondogle — which still doesn’t work. (Of Course, that’s what Condi was supposed to speak about on 9/11/01 — “Threats of Tomorrow” speech that they actually tried to keep from the 9/11 commission. No mention of terrorists in that canceled speech.)

    Secretary of Labor Elaine Chao was also on the Parson’s board before she started her union busting duties at the Labor Dept.

    When you mix the disaster capitalist’s shock doctrine with unaccountable pirates, you a go through a billion bucks in a heartbeat, just like Parson’s did. And it all can be traced back to the revolving door conservative cronies waltz through.