The Justice Department won't disclose how many whistle-blower suits have been filed against contractors in Iraq. But the only Iraq-related False Claims Act case on which the Justice Department so far has announced a decision, it declined to intervene.
That case was filed in U.S. District Court in Alexandria, Va., by two individuals who alleged that Custer Battles LLC, of Fairfax, Va., overcharged the government for expenses on work in Iraq. The company was awarded contracts totaling $38 million -- partially paid with $4 million in cash -- to provide security at Baghdad Airport, and later to help guard distribution of new Iraqi currency, although the tiny concern never had provided security services before.
The Justice Department declined to say why it decided not to back the case -- filed by a former Custer Battles employee and an employee of a subcontractor -- citing department policy. Robert T. Rhoad, a lawyer for Custer Battles, denies wrongdoing by the company, and said he was optimistic that the case would be dismissed. After suspending Custer Battles from receiving new contracts because of the fraud allegations, the Air Force in Sept. 2005 reinstated the company, declaring it eligible again for contracts. An Air Force spokeswoman said contracting regulations require it to reinstate a company after a year if the Justice Department hasn't taken action or requested that the ban be extended.
A tiny company with no experience gets a $38 million contract, including $4 million in cash. Nothing suspicious there.
Even the number of whistle-blower suits, let alone the content of those suits, is now a state secret. You would think that the Justice Department was working for the contractors instead of the American public.
