Tuesday, June 17, 2008

Why Corporate America is Unpatriotic

Just got through an article in the New York Times today investigating the firing of an Army financial overseer, who was let go because he refused to approve a $1 billion payment on poorly documented invoices produced by KBR a Houston based military contractor (Army Overseer Tells of Ouster Over KBR Stir, New York Times). What struck a chord with me on this story is that the Pentagon argued that the overseer was not released from his duties because of the refusal, yet after letting him go, they reversed his decision to not follow through with payment. Their explanation for this decision was that they felt if they failed to make good on their payments to KBR, the company would limit it's services to the government. KBR even stated this off the record to the New York Times, stating that "if it was not paid, it would reduce payments to subcontractors, which in turn would cut back on services."
First off, why is the Pentagon so dependent on infrastructure support given by an independent private entity, which apparently has no common interests with the American people, because if it did, wouldn't they make an effort to adjust their reception of payments from the U.S. government? A government who symbolizes disagreement of the Iraq war as dissent, and a metaphor for being unpatriotic, yet this same government, cowers at the threat of a private corporation that holds the withdrawal of dependable military support over our heads, if we don't make good on our million dollar payments. Who's unpatriotic, here? Who in fact seems to be not our troops.
Now, setting the question of patriotism aside, KBR not only has the inability to effectively invoice their services, so the Pentagon doesn't have to second guess itself, but they've also have been involved in tax evasion back in March of 2008. The Boston Globe reported, that the U.S. Defense Department knew that KBR was avoiding taxes, by "declaring its American workers as employees of Cayman Islands shell companies" (Top Iraq contractor skirts US taxes offshore, Boston Globe). The DOD justified this tax evasion by stating that by KBR not having to pay taxes to Social Security and Medicare, this would lower the cost of their services to the American government. This is absolutely outrageous, and is a slap in the face to the American taxpayer, who currently has no equity in their Social Security system, which is failing, and as President Bush has been quoted to say, "will be bankrupt by 2042" (Partisan Social Security Claims Questioned, Washington Post). So not only is KBR draining out tax dollars, and the Pentagon, through dodgy accounting, but also has decided that it's fair not to contribute to the welfare of American citizens, by dodging its responsibility to pay employment taxes. That's not their money, and so they have no right to decide whether they should pay it or not. Especially when they hold $16 billion dollars worth of military contracts.
Adding more salt to the taxpayers' wounds, KBR has continued this game of beating the system, and draining our defense department of money in more ways than one, yet the Bush administration, and the Pentagon refused to acknowledge this corporate wrong-doing.
Research this matter for yourself, and you'll see an ever-present pattern of our governement pouring billions of dollars in to private contracts without pressing the contractors to be fiscally responsible with reporting their costs, and closing the loops in the tax evasion practices of these companies. It's very unpatriotic to steal money from a country you "support", and continue to take more and more, when our troops can barely arm themselves, and cannot practically benefit from a hearty paycheck at the end of the day. You call this war patriotic?

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