Feral Jundi

Wednesday, May 9, 2012

Industry Talk: Congress Takes Important Step To Stop Afghan Taxation Of US Aid Dollars

This is good news and I sincerely hope that Congress has taken care of this. I know Doug Brooks and the ISOA have been working hard to overturn this practice, and it is amazing to me that we have allowed Afghanistan to do this. How much money has been lost to this corrupt practice? And what an insult?

Here is a quote from ISOA’s website on what exactly the Afghan government has been doing all of these years.

The Afghanistan Ministry of Finance (MoF) has adopted the practice of taxing foreign organizations hired by the U.S. government to support reconstruction and development in Afghanistan. Despite tax exemptions negotiated by the U.S. Department of State (DoS) and the U.S. Department of Defense (DoD) that are applicable to U.S. government (USG) contracts, “tax exempt” companies and organizations continue to receive tax bills from the Afghan government.  Given that the Afghan government can withhold necessary work permits in the absence of tax payments, companies and organizations have little recourse but to attempt direct negotiations with Afghan officials or to pay the tax bills.

Yeah, so that is one of the methods used to harass companies and it is pathetic. If you don’t pay the tax, you don’t get the permit. And really what is being requested by the ISOA and others, is to have Afghanistan live up to their agreements. I mean it is US taxpayer dollars that are going towards aid to help stabilize this country–and this is how Afghanistan honors that?  Here is the ISOA position on this deal.

This tax situation undermines international efforts to stabilize Afghanistan, creates barriers to effective implementation of much-needed aid programs, creates significant new opportunities for corruption within the host government and among companies, and unnecessarily penalizes American taxpayers – costing them millions of dollars – for offering assistance to a foreign nation.
USG contractors in Afghanistan are caught between USG regulations that require valid business licenses and the demands of the Afghan MoF that disputed taxes be paid in order to receive these permits.  Because DoS discourages companies and organizations from negotiating the tax issue with the Afghan government directly, USG assistance is critical. There is an urgent need for clear direction from the U.S. Congress in opposing this unacceptable tax situation.
So after all of this pressure, finally Congress does the right thing. We will see if it works. A big thanks to the ISOA for bringing attention to this matter and keeping up the pressure over the years. –Matt

Congress Takes Important Step to Stop?? Afghan Taxation of U.S. Aid Dollars
07 May 2012
The International Stability Operations Association is pleased to note that the House Armed Services Committee Chairman’s Mark for the Fiscal Year 2013 National Defense Authorization Act contains a provision that aims to end unlawful  taxation of U.S. foreign assistance by the Afghan Ministry of Finance (MOF).  The provision requires the Secretary of Defense to determine that the MOF is not violating bilateral agreements with the U.S. before the Department may use a contracting preference for Afghan goods and services, as required under the “Afghan First” policy. ISOA has worked the Afghan Tax issue as an advocacy priority and is committed to ending this inappropriate taxation.

(more…)

Wednesday, May 4, 2011

Industry Talk: Role Of Security Contractors Debated At Hearing

Bravo to Doug Brooks for standing up for the industry at this hearing.  The debate on what is ‘inherently governmental’ continues to rage, and there are those out there that continue to be very forgetful of the sacrifice of today’s private industry and of our contributions to this war and wars past.  Arguably, we are a strategic asset for the simple reason that without contractors, there would have to have been other means of raising an army to deal with the manning requirements of the war.

My message to all the elected officials on that wartime commission panel is that because you did not have the political courage to implement a draft and authorize the raising of a massive military force, that in effect you gave the war planners no other choice. And as long as we continue to have a military composed of individuals that ‘chose’ to serve, meaning they signed a contract and willfully serve the country, then we will always have manning issues. Simply because you either do a really good job of making the military and war fighting appealing to potential recruits, or you lose them to the private sector.  An all volunteer force concept works great during peace time or during the successful periods of a war campaign, but when there are multiple wars and a multitude of chances of dying or getting wounded on the battlefield, the whole military idea becomes less attractive–and especially when you ask a recruit to sign four years of their life away for the war effort.

It is the freedom of choice that we are talking about here. Our leaders do not have the courage to take away that freedom of choice and implement a draft. Because of the legacy of our war in Vietnam, that required a draft to raise an army, is what I am referring to here as the example. The draft is political suicide, and many politicians out there are not willing to implement that tool to raise an army.

They are also not willing to accept the costs of raising such an army.  With contracting, it is easier to bypass the political risk that goes along with increasing troop levels for wars that continue to drag on and on.  With contracting, it can be wrapped up in all sorts of budget deals, and companies can subcontract to get the mission accomplished.

Not to mention the political costs of when a soldier dies, versus when a contractor dies.  I have noted that over 2600 contractors have been killed in this war, and probably more if there was an accurate accounting of all private sacrifices.  That is 2600 less folks that politicians had to answer for with their constituents. Not to mention all the wounded, and all the folks from numerous countries from all around the world that have contributed to the contractor work force. It is a sacrifice that barely registers with the tax paying and voting public.

Then of course there are the politics of war fighting.  At the height of the Iraq war, when everyone was wanting to pull out and give up, it was contractors that were able to step up and fill in the necessary man power requirements while congress tried to figure out what they wanted to do. And also, that surge of military force could more focus on combat operations as opposed to kitchen duty or guard duty at some camp.  That is a huge strategic asset for a war planner, because if he could not depend on contractors for that support, then they would have had to go to congress and ask for even more troops.

Probably one of the most significant contributions in this war, is the legion of contracted interpreters. Without them, our US troops would be nowhere with this war in Iraq or Afghanistan. These contractors are also on the front lines, participating in the offense and defense by default. They are also dying and getting wounded right there with the US troops and coalition partners.  Oh, and without contracted interpreters, we would have never have gotten as far as we had with the hunt for Usama Bin Laden.  Someone had to interpret the Arabic or Pashtun materials and statements over the years, and yet no one mentioned in the hearings as to how important their contribution has been?

Even the surge in Afghanistan couldn’t happen with out the support of contractors, and war planners know it.  But just imagine if war planners had to go to congress and instead of asking for 50,000 extra troops, they had to ask for 100,000 or 200,000?  The sticker shock for 50,000 troops would freak out congress, and just imagine if they had to ask for twice or three times that? That is why contractors are a strategic asset. I also imagine that the war would have definitely turned out differently without this highly flexible and scalable work force and strategic asset called contractors.

Finally, there is the precedence that continues to be forgotten by all the experts that speak to congress about what is inherently governmental.  In the constitution there is proof positive of the US government’s use of a private offense industry during times of war in the form of Article 1, Section 8, Paragraph 11 (or the Letter of Marque and Reprisal). We used privateers for offensive operations against our enemies, and it wasn’t a one time deal either. We heavily used privateers in both the Revolutionary War and War of 1812, and back then they were a strategic asset of those wars. That is what we used to go up against the world’s best navy at the time called the British Royal Navy.  It was also the most cost effective use of private force for war time that I can think of.

Privateers were a part of the US government’s early use of ‘offense industry’ to not only destroy it’s enemies, but to also profit from the destruction of an enemy.  It was also a way of raising man power at sea in a very rapid and scalable way, and involving the innovations and enterprising ways of private industry during times of war. Did I mention that congress issued 1700 Letters of Marque during the War of 1812 and that our country’s founding father Thomas Jefferson was a huge supporter of the concept?  And yet this precedence continues to be conveniently forgotten and cast aside as insignificant at these hearings.

One final thing.  There are examples of private industry being used in modern times as well, that would certainly helped to define what is ‘inherently governmental’. The awarding of the Medal of Honor to a civilian contractor named William Cody during the Indian Wars is significant to this discussion.  The US allowing Claire Chennault and his Flying Tigers to conduct offensive operations for another country for the destruction of a mutual enemy, is another example of what I am talking about. The US endorsing the private volunteers that went to Israel to support their wars and raise their army and navy was significant. Even the issuing of a license by the Department of State to MPRI for giving key strategic guidance to the Croatians during the Balkan conflict would be considered a precedence as to what is ‘inherently governmental’.

Perhaps instead of dwelling on trying to erase or re-invent history with this ‘inherently governmental’ debate, we should instead invent a new definition as to what the defense of national security is?  Because from where I stand, contractors have been extremely important to national security and to this country’s survival over the years, and yet folks are still wanting to destroy this strategic asset or weaken it. To me, all things must be considered during times of war, to include all and any means of using private industry. We had a good fix on that in the past, and yet with all of our modernity and current technologies, we are still incredibly ignorant and naive as to what kind of asset private industry can be during times of war. That is my thoughts on the matter. –Matt

Role of security contractors debated at hearing
By SARAH CHACKO
May 2, 2011
Contractor groups are taking issue with a commission’s recommendation to restrict the government’s use of private security workers.
“You don’t need James Bond to guard a gate,” Doug Brooks, president of the International Stability Operations Association, said during a Commission on Wartime Contracting meeting. “You need somebody who’s professional and disciplined and following the rules.”
The commission recommended in its February interim report to Congress that agencies should provide their own personnel for security operations.
Agencies are being forced to use contractors because of limited resources, commissioners said during Monday’s open comment session. (more…)

Tuesday, March 1, 2011

Publications: Journal Of International Peace Operations, March-April 2011

Friday, January 21, 2011

Cool Stuff: CSIS Debate–Doug Brooks Vs. TX Hammes On The Benefits Of Using Armed Contractors

Wednesday, November 10, 2010

Industry Talk: Private Security Companies Sign Landmark Code Of Conduct In Switzerland

     This is great news and a big round of applause to all involved for all the hard work they put into this over the years. I think it is very significant that so many of the big name companies have signed on to this thing from around the world, and that there has been such wide support from outside organizations.

     Below I posted the DoS statements on the signing, as well as press releases from Triple Canopy and AEGIS. Now what will really be interesting is how this will be implemented, and how it will help to get companies to do the right thing.

     And like what the article below has stated, this Code of Conduct does not mean that the customer does not have to do anything anymore in terms of regulation or oversight. This just gives them a tool to work off of. So hopefully the efforts of the US government will continue down that path of creating a strong and effective contracting corps.

     Especially as the DoS enters into the new phase of these wars, and they become more dependent on the services of security contractors to continue the mission. Or as the shipping companies continues to look more towards armed private security for their boats.  –Matt

ISOA Applauds the Signing of a Landmark Code of Conduct

Trade Association Endorses a Voluntary Code to Address Responsible Oversight and Accountability of Private Security Companies

Washington, DC – The International Stability Operations Association (“ISOA”), a trade association that promotes high operational and ethical standards among its membership including more than twenty private security firms, today strongly endorsed the first-ever International Code of Conduct to ensure better transparency and accountability within the stability operations industry. The code was signed earlier today in Geneva, Switzerland, by more than fifty private security companies, including many ISOA Member companies. Among the speakers at the event were Swiss State Secretary Peter Maurer, Triple Canopy CEO Ingacio Balderas, G4S Director of Public Affairs Michael Clarke, Legal Advisor to the U.S. Department of State Harold Honju Koh, and Devon Chaffee of Human Rights First.In particular, this voluntary Code of Conduct highlights private security contractors’ commitment to respecting human rights and the rule of law in conflict zones, such as Iraq and Afghanistan. For example, it offers guidelines for the rules for the use of force and requires standards for recruitment, vetting, training, management of weapons, and internal control mechanisms. It also requires companies to ensure their employees “take all necessary steps to avoid the use of force” and explicitly bans mistreatment of detainees, forced labor, and sexual exploitation. (more…)

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