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As media scrutiny of the Nisour Square shootings intensified and Congressional Democrats woke up to the activities of Blackwater in Iraq, it appeared for a moment as though the company’s days in Iraq were numbered. Even on a practical level, U.S. officials had to be concerned at the prospect of Washington’s bodyguards becoming greater targets than the personnel they were tasked with keeping alive.

A few days after Nisour Square, another scandal involving Blackwater erupted, this one centered in Washington and highlighting the close relationship between the company and the Bush administration. Allegations surfaced that weapons brought into Iraq by Blackwater may have ended up in the hands of the Kurdish militant group the PKK, which is designated a “foreign terrorist organization” by the State Department.96 According to a September 18 letter sent by Representative Henry Waxman to State Department Inspector General Howard “Cookie” Krongard, a federal investigation into whether Blackwater “was illegally smuggling weapons into Iraq” was obstructed by Krongard, who, Waxman charged, was a “partisan” operative with close ties to the Bush administration.97

Waxman cited a July 2007 e-mail from Krongard in which he ordered his staff to “stop IMMEDIATELY” cooperating with the federal prosecutor investigating Blackwater until Krongard himself could speak to him. Waxman said Krongard’s actions had caused “weeks of delay” and that by subsequently assigning a media relations staffer instead of an investigator to aid the prosecutor, Krongard had “impeded the investigation.”98 It was later revealed that Krongard’s brother, Alvin “Buzzy” Krongard, had accepted a position as a paid adviser to Blackwater, a position from which he resigned after Waxman’s committee exposed it. 99 (As discussed in Chapter 3, Alvin Krongard, who served as the number-three man at the CIA, was a player in helping Blackwater win its first private security contract in Afghanistan in 2002.) Howard Krongard subsequently resigned from his State Department post in late 2007.100 Blackwater, for its part, denied that it was “in any way associated or complicit in unlawful arms activities” and said it was cooperating in the federal investigation.101

While Blackwater got hammered for these scandals in the media, behind the scenes, a series of events was unfolding that reeked of a major-league cover-up of the Nisour Square massacre, an effort that appeared to emanate from some of the highest levels of power in Washington. As Waxman prepared for Erik Prince’s October trip to Capitol Hill, he discovered that after the shooting, the State Department had ordered Blackwater “to make no disclosure of the documents or information” regarding its Iraq security contract without written authorization.102 Waxman protested to Rice, saying Congress had a “constitutional prerogative” to investigate Blackwater and telling her, “You are wrong to interfere with the committee’s inquiry.”103 Under fire, the State Department shifted its position the day Waxman wrote to Rice, saying that the restriction applied only to classified information.104

Unlike many private companies working for the occupation in Iraq, Blackwater reported directly to the White House, not to the military. They “are really an arm of the administration and its policies,” charged Kucinich.105 Both Gen. David Petraeus and Ambassador Crocker made clear that without Blackwater and its ilk, the occupation would not be tenable. “I have a great deal of respect for their work,” said Deputy Secretary of State John Negroponte, who was guarded by Blackwater during his time in Iraq. Blackwater, he said, “kept me safe—to get my job done.” Without them, he said, “the civilians of the Department of State would not be able to carry out our critical responsibilities in places like Iraq and Afghanistan.”106 Nicholas Burns, the Under Secretary of State for Political Affairs, said, “We have lots of people in Baghdad, it’s our largest embassy in the world, and they have to be well protected.”107

While George W. Bush had, at times, displayed a willingness to throw his allies overboard when his own survival—or that of his pet policies—was on the line, Blackwater would not join Donald Rumsfeld and George Tenet in the open waters of collateral damage. “Blackwater provides a valuable service,” Bush said after the Nisour Square massacre. “They protect people’s lives. And I appreciate the sacrifice and the service that the Blackwater employees have made.”108 What was probably dawning on members of the Bush administration at this point was that, like it or not, they needed Blackwater. Even if it was politically expedient to let them go, the occupation of Iraq would have been practically impossible to carry on without them. The company and its ilk had become that integral to the military operations of the United States.

Prince of the Hill

The first time Erik Prince was summoned to appear before Congress to answer questions about Blackwater’s activities, in February 2007, he sent his lawyer. That was before most people had ever heard of his company. After Nisour Square, he had no choice but to show up in person. On October 2, 2007, the world would meet Mr. Prince.109 Security was heavy inside the Committee room, and a line of would-be spectators and journalists stretched through the corridors of the Rayburn building. Many would be corralled into an overflow room, but most remained in the halls. Only a few dozen people were permitted to witness the event in person, among them the family members of Blackwater operatives killed in Fallujah, who were suing Blackwater for wrongful death. The entire seating section behind the leather chair where Prince would sit was blocked off with signs that read, “Reserved for Blackwater USA.” Several of those chairs would remain empty for the duration of the hearing.

Prince arrived surrounded by lawyers and advisers, including Barbara Comstock, a veteran Republican operative and crisis communications expert, and a number of senior Blackwater executives, among them Prince’s right-hand men, vice president Bill Matthews and president Gary Jackson. Prince’s consigliere would repeatedly interrupt the proceedings to huddle the advisers around the Blackwater chief like a sports team plotting its next play. In preparation for his appearance that day, Prince’s lawyers had enlisted the services of BKSH, the political consulting arm of Burson-Marsteller, a PR giant controlled by one of the barons of spin, Mark Penn.110 It was an interesting choice, given that Penn was Hillary Clinton’s chief strategist, a man some observers have called “Hillary’s Rove.” Perhaps more telling was the fact that BKSH was led by Charles Black Jr., an adviser to both presidents Bush.111