Adding to the troubles for the eternally frustrated military contractor, former employees of Blackwater Worldwide say that the company systematically overcharged the State Department to the tune of $55 million in double-billings and false invoices.
Perhaps the most sensational of the allegations is that Blackwater kept a salaried Filipina employee on payroll in Afghanistan as a prostitute, billing the US government for her pay and air travel under the “morale, welfare, recreation” category.
The ex-employees say Blackwater’s fraud involved not just its contracts with the State Department in Iraq and Afghanistan, but also the DHS and FEMA during Hurricane Katrina.
Blackwater is already under probe by the Justice Department for allegations of attempted bribery in the wake of the 2007 Baghdad massacre. After the massacre, Iraq revoked the organization’s license to operate in the country, and just yesterday expelled 250 former Blackwater employees who work for other contractors.