Around the World

In a growing list of legal incidents involving maritime security professionals, Port2Port West Africa has confirmed that two of its security contractors were arrested on March 28 in Nigeria. The company denies the allegations made against the two men. Vincent Hayward and Piers Eastward, were arrested by the Joint Task Force (JTF) in Bayelsa State, Nigeria, after being detained as part of an investigation into a third party suspected of crude oil theft.
Also in the last week, the Estonian foreign ministry has announced that shipping company AdvanFort has paid the bail for the Estonian maritime security guards that are detained in an Indian prison. However, they won't be released from prison before Tuesday, according to local media, due to technical reasons.
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McLean-based defense contractor Exelis on Tuesday said it had selected a name for the mission systems division it is spinning off into a new, independent and publicly traded company: Vectrus.
“While the brand will be new to the market, the experienced Vectrus team will continue to build on a legacy of delivering infrastructure asset management, logistics and supply chain management services, as well as information technology and network communication services, to U.S. government customers worldwide,” Dave Melcher, president and chief executive officer of Exelis, said in a statement.
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The President’s budget this past year reflect a unified approach to budgeting for the Department of Defense (DOD), Department of State, and U.S. Agency for International Development (USAID) operations in conflict areas. By aligning priority missions across these agencies, the Budget takes advantage of the efficiencies, improves coordination, and reduced overall costs. Further, isolating the military and civilian costs related to temporary and extraordinary requirements in the OCO request promotes transparency and efficiency across the security agencies of the Federal Government. The President’s 2013 Budget provided $96.7 billion for these operations, a reduction of 24 percent below last years enacted level.
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One of the nation’s largest government contractors requires employees seeking to report fraud to sign internal confidentiality statements barring them from speaking to anyone about their allegations, including government investigators and prosecutors, according to a complaint filed Wednesday and corporate documents obtained by www.WashingtonPost.com
Attorneys for a whistleblower suing Halliburton Co. And its former subsidiary, Kellogg Brown & Root, said the statements violate the federal False Claims Act and other laws designed to shield whistleblowers.
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Olive Group FZ-LLC has become the first private security company globally to achieve accredited certification against the PSC1 standard for private security companies. This follows a rigorous process of audit and inspection of its corporate management systems and its field operations in Iraq. In December 2012, the British Government endorsed the American National Standard Institute's PSC.1 2012 as the standard against which private security companies operating in complex environments like Iraq should be evaluated.
"Olive Group is delighted to be the first company to receive accredited certification covering its corporate processes and its extensive operations in Iraq. Its management systems, training, operational procedures and commitment to human rights were rigorously tested in the audit and certification process conducted by the international certification body Intertek" says Martin Rudd, Managing Director of Olive Group.
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A controversial dam project in Afghanistan is now so over budget that even by the estimates of the U.S. government aid agency that continues to fund it, the cost has far surpassed its potential benefits, the top U.S. watchdog in Afghanistan said.
“This cost increase indicates that the (project) may no longer be economically viable,” Special Inspector General for Afghanistan Reconstruction John Sopko wrote in an inquiry letter to the U.S. Agency for International Development (USAID) requesting an explanation of the causes and rationale for what he says are major cost increases in the project.
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MEMPHIS, TENN. — Federal prosecutors say a U.S. contractor who worked in Iraq has pleaded guilty to filing a false tax return. The U.S. attorney’s office in Memphis says 44-year-old Darrin Albert Searle entered the guilty plea eariler this week. He is scheduled to be sentenced on May 29. According to facts revealed in documents and in court, Searle failed to disclose $618,186 of income he received through kickbacks while working as a government contractor in Iraq in 2007.
Searle had been required to file amended returns and pay all relevant taxes, interest and penalties. The case was investigated by the Special Investigator General for Iraq Reconstruction, the Department of the Army’s Criminal Investigative Division and Internal Revenue Service Criminal Investigations.
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After posting a contract for a flattering photographer on Monday, the agency pulled its request.
The U.S. Agency for International Development—which has faced accusations of mismanagement and waste with its funding in Afghanistan—recently canceled a contract for "attractive visual images" about its work in the war-torn country. The request—which the agency posted Monday—has since been taken off USAID's website. But the agency called for "timely, attractive visual images," noting that in Afghanistan "negative images flood both social and conventional media with little counter," according to a cached Web page of the request.
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KBR Inc. and Halliburton Co. aren’t automatically immune from lawsuits by military service members over illnesses caused by exposure to contractor burn pits, a U.S. appeals court said, reversing a lower court ruling. KBR is only entitled to immunity if it adhered to the terms of its contract with the government, something the district court failed to explore adequately, U.S. Circuit Judge Henry Floyd wrote in sending the case back for further proceedings.
The unanimous ruling by a three-judge panel in Richmond, Virginia, is the latest rebuff to KBR’s argument that it should be insulated from liability in lawsuits over its performance in Iraq and Afghanistan by laws shielding contractors during wartime. KBR is disappointed by the ruling and is evaluating options for appeal, Richard Goins, a company spokesman said in an e-mailed statement.
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A year and a half after President Barack Obama issued an executive order outlawing human trafficking and forced labor on U.S. military bases, a five-month investigation by “Fault Lines” has found compelling evidence that these abuses remain pervasive at U.S. facilities in Afghanistan.
“Fault Lines” traveled to India, the United Arab Emirates and Afghanistan to trace the journey of a typical migrant worker seeking a job at a U.S. military base. We found Department of Defense subcontractors and their recruiters colluding to profit directly from exorbitant fees charged to job candidates, who are sometimes left with no choice but to work for six to 12 months to recoup those costs.
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One of the more controversial proposals in the Pentagon’s latest budget is the cutting of the active duty Army from its post 9/11 peak of 560,000 soldiers to approximately 450,000. If sequester pressures remain in 2016, numbers could go to 420,000 or even fewer. Critics assert that slimming the Army to numbers not seen since before WWII will require a time intensive process to grow more forces when faced with another large scale operation.
This will send a dangerous message to potential adversaries who will question our ability to respond to aggression. Pentagon leaders counter that these cuts are manageable and that our ground forces will remain more competent and lethal than any potential foe. I am sympathetic to the critics’ arguments that we cannot wish away the need for robust and ready ground forces.
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CONTRACTOR SUPPORT OF U.S. OPERATIONS IN THE USCENTCOM AREA OF RESPONSIBILITY TO INCLUDE IRAQ AND AFGHANISTAN
BACKGROUND: This report updates DoD contractor personnel numbers in theater and outlines DoD efforts to improve management of contractors accompanying U.S. forces. It covers DoD contractor personnel deployed in Afghanistan (Operation Enduring Freedom (OEF)); Iraq; and, the U.S. Central Command (USCENTCOM) area of responsibility (AOR).
KEY POINTS: In 1st quarter FY 2014, USCENTCOM reported approximately 99,057 contractor personnel working for the DoD in the USCENTCOM AOR. This total reflects a significant decrease from the previous quarter. The numbers of contractors in other USCENTCOM locations make up about 17.9% of the total contractor population in the USCENTCOM AOR. A breakdown of DoD contractor personnel is provided below
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The federal courthouse in Brooklyn, Akbar Ahmad Sherzai, an independent contractor for a trucking company operating in Afghanistan that was responsible for delivering fuel to U.S. Army installations, pleaded guilty to his role in offering a U.S. Army serviceman $54,000 in bribes to falsify documents to reflect the successful delivery of fuel shipments that Army records indicate were never delivered. When sentenced, he faces a maximum of 15 years’ imprisonment and a $250,000 fine.
The guilty plea was announced by Loretta E. Lynch, “The defendant sought to use deception, corruption, and greed to enrich his company at the risk of jeopardizing the U.S. Army’s supply lines in Afghanistan. Attempts to corrupt American officials will not be tolerated, either at home or abroad,”
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KANDAHAR, AFGHANISTAN – In the remote district of Shorabak, situated in Helmand Province, is a newly-built Afghan National Army, or ANA, installation which according to Maj. Gen. Michael Eyre, is some of the best construction he’s seen in Afghanistan. Eyre has been involved with Afghanistan and Iraq reconstruction efforts for years. As the Transatlantic Division commander since April 2012, his staff helps the U.S. Army Corps of Engineers Transatlantic Afghanistan District with their construction oversight mission. He toured the recently completed ANA 215th Corps Combat Logistics Brigade, or CLB, project Jan. 28, eight months since his last visit.
“We’re here to help build quality infrastructure projects so the Afghan Security Forces have places to live and train to be able to defend their country,” said Eyre. “The USACE men and women here and in supporting districts back home are working hard to complete them as the troop drawdown continues.”
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The Navy has quietly lifted the suspension of a shipping contractor under investigation for possible fraud, allowing the company to compete for new work. In exchange, the company has agreed to pay for an independent audit that could help the Justice Department determine how much it may have overcharged the government.
Records show that the Navy recently decided to reinstate Inchcape Shipping Services, a company based in Dubai in the United Arab Emirates. The move came after a federal judge questioned whether the service had presented enough evidence to justify the suspension. Contracting experts said it was unusual for the government to turn to an outside auditor in this type of case, and some questioned whether an independent firm could do as thorough a job.
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Triple Canopy, Inc., a global provider of mission support, security, training and advisory services, is pleased to announce that it has formed a 100 percent employee-owned company by establishing an Employee Stock Ownership Plan (ESOP). A veteran-owned and veteran-run company, more than 80 percent of Triple Canopy's workforce is made up of former military personnel.
"This is an exciting time for Triple Canopy and we are proud to become a majority veteran, employee-owned company," said Triple Canopy CEO Ignacio Balderas. "Delivering quality services to governments and multinational companies in challenging locations remains the mainstay of our business success."
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Casals & Associates, a DynCorp International company, today announced that it has been awarded a position on a multiple award, indefinite quantity contract (IQC) to support U.S. Agency for International Development (USAID) transition initiatives in Africa and Latin America and the Caribbean as part of the Support Which Implements Fast Transition IV (SWIFT IV) program.
“Casals has successfully supported previous iterations of the SWIFT program over the last decade,” said George Krivo, senior vice president, DynLogistics. “We are excited to continue this important work as an implementing partner of USAID.”
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MPRI Inc. has agreed to pay $3.2 million to resolve allegations that it submitted false labor charges on a contract to support the Army in Afghanistan, the Justice Department announced today. MPRI is a Chantilly, Virginia-based company.
“We will not tolerate contractors that bill for work that is not performed,” said Assistant Attorney General for the Department of Justice’s Civil Division F. Delery. “The Department of Justice will pursue those who do not comply with the terms of their bargain with the government and restore to the taxpayers the full measure of funds falsely claimed.”
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As a U.S. citizen/green card holder residing abroad, you still owe U.S. taxes on your worldwide income. The U.S. has tax treaties with many countries, which allows the federal government to exchange data on its citizens living in other countries for tax purposes. Most importantly, if you do not file a tax return for a given tax year, the statute of limitations on that year never runs out.
If you are a U.S. citizen or a resident alien of the United States and you live or work abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is now adjusted for inflation $91,400 for 2009, $91,500 for 2010, $92,900 for 2011, $95,100 for 2012 and $97,600 for tax year 2013.
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In July 3, 2013 Department of State (DOS) awarded PAE a contract for $403 million to provide life support services at U.S. Embassy in Baghdad, Iraq. The contract is to provide life support services including food procurement, preparation and serving, fuel procurement and delivery, postal support services, solid waste management, property acrap, destruction and disposals; recreation support services; airfield and structural fire protection, warehouse operations support, airfield management and operations support, transportation services, RSO supplemental staffing support for vetting, badging and security systems maintenance, and program management.
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Three G4S guards who joked about an asylum seeker on Manus Island swallowing a pair of nail clippers are no longer working for the company, which was hired to run the detention center. Darren Powell, Jason Drain and Paul Clear ridiculed an asylum seeker who swallowed the nail clippers on Christmas Day in a series of Facebook posts.
“Merry Christmas all. One of these jokers just swallowed a pair of nail clippers. RALMFAO. A Christmas I shall not easily forget,” Powell posted in his publicly accessible profile. RALMFAO stands for “rolling around laughing my freaking ass off”.
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A year ago, "sequestration" was an ominous word in defense circles as the industry braced for what promised to be drastic across-the-board cuts in federal spending. But with this week's passage of the 2014 omnibus spending bill, everything looks -- well, everything looks pretty much the same as usual. That might not sound like news, but for an industry expecting to absorb a major blow as the federal cash spigot tightened, maintaining the status quo is actually a win. It spells a much more promising year for the defense industry than many would have imagined just a few months ago.
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A former NATO commander in Afghanistan is behind bars in a Kabul prison accused of gun smuggling in a case that has again highlighted the dangers of doing business in the country. Daniel Menard, who left the Canadian army in disgrace after admitting a sexual relationship with a subordinate while on duty in Kandahar, was detained by Kabul police on January 10.
The Ministry of Interior has accused the former brigadier-general of being in possession of 129 rifles and 148 radios, all of which they say he was not licensed to hold. He had been working as the Afghanistan country manager for Garda World, a global private security company that provides services across parts of Afghanistan.
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The government has filed a complaint against Kellogg, Brown & Root Services Inc. (KBR) and Kuwaiti companies La Nouvelle General Trading & Contracting Co. (La Nouvelle) and First Kuwaiti Trading Co. (First Kuwaiti) for submitting false claims in connection with KBR’s contract with the Army to provide logistical support in Iraq, the Department of Justice announced. KBR is an engineering, construction and services firm headquartered in Houston, Texas. Kuwait-based La Nouvelle and First Kuwaiti provided transportation, maintenance and other services in support of KBR’s contract with the Army.
“We depend on companies like KBR and its subcontractors to provide valuable services to our military,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will ensure that contractors do not engage in corrupt practices at the expense of our troops abroad, while profiting at the expense of taxpayers at home.”
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For the past 11 years, logisticians have had their hands full in Afghanistan. For one, the country is landlocked and far from a seaport. The terrain, especially in the strategically important east, is covered with mountains; and the country’s road network is much less advanced than the one in Iraq. Over the years, the Air Force and Army airdropped supplies on remote bases, from large parts for military vehicles parachuted out of airplanes to “Speedballs,” body bags filled with water and ammunition, that could be tossed out of a helicopter to resupply troops under fire.
For most of the past decade, the logistical focus has been on getting equipment out to troops fighting in remote areas. “Doctrine states when you’re starting an operation, it’s always a push,” says Major Rosendo Pagan, executive officer of the 18th Combat Sustainment Support Battalion. But with less than 23 months before the vast majority of U.S. Troops are out of Afghanistan, logisticians have focused much of their efforts on what Pagan calls “the pull phase”: bringing equipment back from far-flung outposts.
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"This is an exciting time for Triple Canopy and we are proud to become a majority veteran, employee-owned company," said Triple Canopy CEO Ignacio Balderas. "Delivering quality services to governments and multinational companies in challenging locations remains the mainstay of our business success."

