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Sunday, December 30, 2012

A second golden age for contractors


Three name changes, dozens of legal problems, two major disputes with the governments of Iraq and the United States and the resignation of its founder, would mean a disaster for any company. Not for Academi.

The company previously known as Xe and Blackwater -now bearing the “boring name” of Academi- has a bright future ahead. Or at least that is what one would think reading the report from an independent commission on the attack to the US embassy staff in Benghazi.

Both the independent commission and a Senate hearing have stated that the main problem was that the guards were foreign and unreliable. And both recommended either increase considerably the State Department personnel or hire external guards to take care of US diplomatic security abroad.

Considering the current austerity wave around the world, the first option is unlikely. That leaves the contractor option as the only one. Which in turn it means Blackwater -and other contractors. 

Blackwater guards
And it is a big cake to share: anything between $2.2 billion and $1.3 billion, depending on who you listen to -either the commission or Clinton talking to the Senate.

But that is not the only market for armed guards. Despite a widespread call against the NRA’s suggestion of putting armed guards in schools to prevent mass shootings, some Councils are already discussing the option. 

If passed, most towns don’t have the resources to pull police officers to patrol schools and it would mean another source of income for contractors. Even if it is only a matter of training guards and teachers, Blackwater may be in a good position to take advantage of it.

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