Tag Archives | military contractors

NSA Contractor Booz Allen Hamilton Has Made $2 Billion For The Carlyle Group

booz allen hamiltonWondering what the deal is with Booz Allen Hamilton, the defense contractor for which NSA whistle-blower Edward Snowden worked? Well, for starters, since 2008, it’s been owned by global investment firm the Carlyle Group, to which both the Bush and bin Laden families were connected, Forbes reports:

In 2008, the Carlyle Group made a large $910 million investment to buy a majority stake in Booz Allen’s government consulting business.

Washington-based Carlyle, which has a long and successful history doing deals involving government contractors, has really made the Booz Allen deal work. The private equity firm has made $2 billion in realized and unrealized profits on the Booz Allen Hamilton deal so far. Its $910 million investment is now worth $3 billion.

There was a time when Carlyle’s ties to the government made the private equity giant a target of conspiracy theories, but the firm has worked hard and successfully to improve its image and limit its connections to the government.

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Since 9/11 Private Contractors Have Made $385 Billion From Overseas Bases

baseworldVia TomDispatch on the staggering sum being passed from U.S. taxpayers to a handful of contracting corporations in the name of maintaining the Pentagon’s global “baseworld”:

Outside the United States, the Pentagon controls a collection of military bases unprecedented in history. With US troops gone from Iraq, it’s easy to forget that we probably still have about 1,000 military bases in other peoples’ lands.

The Pentagon has dispersed around $385 billion to private companies for work done outside the US since late 2001, mainly in that baseworld. That’s nearly double the entire State Department budget over the same period. Almost a third of the $385 billion has flowed into the coffers of just 10 top contractors, [with the largest amount going to] KBR, the former subsidiary of Halliburton.

Once upon a time, however, the military, not contractors, built the barracks, cleaned the clothes, and peeled the potatoes at these bases. This started to change during the Vietnam War, when Brown & Root, better known to critics as “Burn & Loot” (later KBR), began building major military installations in South Vietnam as part of a contractor consortium.

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You Can Be A Patriot or a Profiteer…But You Can’t Be Both

This week, the three military contractors that do the most business with the Pentagon announced their quarterly profits for 2012.

Their profits continue to grow while they push Washington, D.C. to protect their budgets at the expense of the rest of us. Here’s the breakdown so far for this year:

This week’s announcement raises a fundamental question: Should people and companies be allowed to make huge profits from war? Even raising this question in today’s environment may seem trite, but we used to have different answers than those that prevail in modern-day Washington, D.C….

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