Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Billions in Stimulus Funds Paid to Tax Delinquent Contractors

ABC News’ Devin Dwyer (@devindwyer) reports:

The federal government awarded $24 billion in Recovery Act funds to contractors and vendors who owe millions in unpaid taxes, a new Government Accountability Office report has found. 

The nonpartisan watchdog agency reported Tuesday that at least 3,700 recipients owed more than $750 million combined in unpaid federal taxes as of Sept. 30, 2009.  They represent 5 percent of all recipients of the so-called stimulus funds.

“For many years now, we’ve known that a small percentage of federal contractors and grantees who get paid with taxpayer dollars shirk their responsibility to pay their taxes,” said Democratic Sen. Carl Levin of Michigan. “Now the executive branch should get on with it and actually debar the worst of the tax cheats from the contractor workforce.”

Levin, who chairs the Senate Permanent Investigations Committee, plans to hold a hearing on the report this afternoon.

“That such a huge amount of the stimulus money went to known tax cheats should be a wakeup call for Congress,” said Republican Sen. Tom Coburn of Oklahoma, the committee’s ranking member.

The GAO said their report likely underestimates the total amount of unpaid taxes owed by stimulus recipients.  Federal law does not require government agencies to check the tax compliance of prospective grantees.

The report singled out 15 cases of “abusive or potentially criminal activity” for further investigation by the IRS.

One nonprofit health care organization reportedly owes $4 million in payroll taxes and has repeatedly submitted “dishonored checks” to the IRS to pay the bill.   An unnamed security company, which received over $100,000 in Recovery Act funds and still owes more than $9 million in taxes, reportedly paid debts to other creditors but not the IRS and has repeatedly violated federal labor laws.

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May 24, 2011 Posted by | Civilian Contractors, Contractor Oversight, Government Contractor, Private Security Contractor | , , , , | Leave a comment



By Gordon Duff And Raja Mujtaba at Veterans Today

“Victims shot in the back repeatedly”

Protests throughout the city of Lahore, university students, various political parties, demanded stiff punishment for a group of Americans, one identified initially as “Raymond Allen Davis,” now “identity unknown,”  held on a variety of charges including 2 counts of murder along with four American security contractors  currently being sought after fleeing the scene of a vehicular homicide in a related incident.

“Davis” is accused of two counts of murder and terrorism related charges.  The other four, named to police but withheld from the media, are being sought for questioning in relation to a vehicular homicide while moving in traffic to assist “Davis.”  The four, though described by Davis and the American press to be “diplomats” are believed to be security contractors who entered Pakistan illegally under assumed identities.

The four not yet in custody, believed to be Americans, fled the scene after killing Ibadur Rehman, a local merchant, during a bizarre incident this week.  The Americans, mis-identified by the US Embassy as “diplomats” are believed involved in cover or “black ops” operations inside Pakistan, reportedly against the government of Pakistan, America’s primary ally in the region.

The victim of the vehicle homicide, Rehman, a bicyclist traveling on Jail Road in Lahore, was struck and killed by a four wheel drive vehicle that was part of what “Davis” describes as a “mission” in his statement to police.

According to the statement, the two vehicles, the Honda rental with “cloned” plates driven by “Davis”  and the “chase vehicle,”  a 4 wheel drive vehicle not registered to the American consulate, containing a 4 man armed security team, were heading toward the Mozang Chungi district.

Mozang Chungi is a densely populated are of small shops and street vendors typically only used by local residents.  Security sources in Pakistan state:

“No American tourist or diplomat would ever go there, certainly not two car loads of heavily armed private contractors equipped for a mission of some kind.  The only possible reason to be there would be terrorism.  The area has been attacked before by terrorists, taking advantage of the crowds and confusion.  We suspect we may have stumbled on the source of previous terror attacks and, in fact, broken up what may have become another ‘Mumbai.’

This is a classic terrorist cover, false identity, phony license plates, car filled with weapons, radios and surveillance gear.”

Please read the entire story here


Authorities in Lahore, Pakistan were allowing “Davis” to spend his nights at the American consulate and his days at a local police station.  But now due to mounting pressures this arrangement has been cancelled. The United States government continues to demand the release of “Davis” though it has also refused to identify him or his associates or state their actual mission in Pakistan.

“Davis” is believed to be a native of Las Vegas, 36 years old with a military background in Special Forces.  An internet search shows him to operate under a “one man” Florida based security company but there is, of yet, no known relationship between this entity and any State Department overseas mission.

A check of passport records show that “Davis” has traveled between Pakistan and Afghanistan 9 times during the past 18 months.

February 2, 2011 Posted by | Civilian Contractors, Legal Jurisdictions, Pakistan, Private Military Contractors, Private Security Contractor | , , , , , , , , | Leave a comment