Feral Jundi

Friday, May 27, 2011

Legal News: Donnelly Amendment To Improve US Oversight Of Private Security Contractors Passes House

You know, better late than never.  We will see how this goes and if in fact this impacts the industry positively.  Stuff like this only helps to legitimize security contractor use in the war and ensure that this industry is more asset than liability. I would be curious to hear what any industry folks have to say about the amendment and it’s possible impact on the war? –Matt

Donnelly Amendment to Improve U.S. Oversight of Private Security Contractors Passes House
May 25, 2011
Washington, D.C. – Today, Congressman Joe Donnelly offered an amendment to the National Defense Authorization Act for Fiscal Year 2012, H.R. 1540, legislation authorizing Pentagon programs for the coming year and setting forth our nation’s defense policies and priorities.  Donnelly’s amendment would direct the Department of Defense (DOD) to devise a comprehensive strategy setting out standards for oversight plans governing all private security contracts funded by the DOD and designate a single official in the country of operations with the responsibility of certifying that each private security contract has an effective oversight plan and that the contractor’s employees are properly licensed and permitted to do their work.

(more…)

Tuesday, May 17, 2011

Legal News: Britain To Give Legal Backing To Armed Guards On Vessels

This is interesting, and this will certainly be a legal nightmare to produce. The reason why is the UK is a signatory of the Paris Declaration and the Second Hague Conference in 1907. Not to mention their local laws that deal with citizens owning and using weapons.

Although there is precedence for Britain to ignore these treaties. During WW 1, they implemented a strategy against German U-boats called ‘Q Ships’.  Or basically they armed merchant vessels to attack the enemy at sea. What made this strategy interesting is that they actually wanted the vessel to look like a defenseless merchant vessel so German U-Boats would attack them. The point is, is this was a violation of these treaties, and that is precedence. (someone please correct me here if I am wrong, but Global Security identified this point as well)

Now is this a revival of a modern day version of Letter of Marque and Reprisal?  It could be, but they probably will not call it that. But it is a license to arm a merchant vessel, and that is significant. The article below also identified Denmark as seeking a similar path of creating an arming license.

It’s kind of like how the US licenses private companies to be armed or provide defense related services abroad via the ITAR and DSP 73. I guess the point is that states will work around the law and treaties, if it is within their best interest to do so. But as the Export Law blog has identified, there are many ‘technical’ obstacles to arming vessels.

My thoughts on the matter is that they might as well revive the Letter of Marque and Reprisal, just because the laws created continue to morph into exactly what the LoM is all about.  It will also give vessels more legal authority to sail and not get screwed with by other countries for being armed. The incident between India and the Danish flagged Danica Sunrise highlights the complexities of being armed on the open ocean, and these vessels need internationally recognized authority to be armed.

A LoM is essentially a license that ‘puts the flag of a country’ on that vessel to do what it is doing. A LoM is also signed by the highest authority of that country and there is law (admiralty law, prize courts) and history (hundreds of years of it’s usage) to support the concept. All other licenses pale in comparison.

The other interesting thought that came to mind is if a vessel had armed guards, could that vessel defend itself against a state sponsored act of piracy or outright attack?  Let’s say China or Iran wanted to detain an armed merchant vessel, seize the loot on the boat and imprison or even kill all the crew.  If the threat was imminent, would a vessel and it’s armed crew have the right to defend itself against such a naval assault?

Who knows, but as it stands now, a merchant vessel being attacked by a country could be viewed as a company versus a state, and less like an act of war. If that company has arming authority through a license, then how does that work in such an example presented? It is an interesting question, but as we allow shipping to be armed, these kinds of scenarios will present themselves. In this case, if ships are to be armed, then these possible scenarios should be covered by laws and licenses, and international treaties should be made or modified.  Hence why I go back to the LoM, because it has such historical precedence throughout the world.

The other point that needs to be addressed is the rules for capture or enemy prisoners. Because what if the guards on a vessel fire upon a skiff with pirates, and their boat starts sinking?  Or the pirates just give up and surrender to the vessel for some reason. Or a wounded pirate is the last survivor on a boat, and asks to be given care?  What about prisoners?  There should be a mechanism in place that allows for the detention of pirates, and the legal processes an armed merchant vessel must follow for that detention.  Perhaps video cameras on ships would be a good thing to have, just to legally protect the ship in a court of law when these pirates are detained and charged. The way I envision this is that video tape, witnesses, and GPS coordinates for where the incident took place, would be some excellent tools for a vessel to have in order to help protect themselves legally and to help in the prosecution of pirates. Without provisions like this, then in essence the whole ‘catch and release’ game continues.

And like with the early privateers, unless they have an incentive to detain prisoners, they will not be that enthused to take them. Do we want armed guards of a vessel to be in a position to ‘turn away’ pirates that are surrendering to them, just because it is not profitable or legal to do so? Or the ships insurance or budget does not provide for the care or detention of prisoners. For those of you who are students of ‘offense industry‘ you will recognize quickly what I am getting at here. At present, there is no offense industry in place to capture prisoners and reduce the number of pirates that continue to ravage the shipping industry. There is only ‘defense industry’, which only profits from the continuation of piracy. Reducing the number of pirates through culling or capture is not a main focus of defense industries.

Also, to be technical, the terms of the treaties signed have more significance between all the parties that ratified the thing. The main threat to shipping is pretty much from Somali pirates, so the LoM’s to be issued would be against folks who come from a failed state. (Somalia is not a signatory of these treaties either.) But of course I am simplifying this, and any legal eagle out there could probably find some portion of the treaties or international law that would still prevent the LoM being used against pirates. If any lawyers or readers have any legal input on where this will go, or what this will potentially look like if they create an arming license, let us know in the comments. –Matt

Edit: On a side note, JLT has been itching to fire up their private navy, and legal authority is what they have been seeking.

Britain To Give Legal Backing To Armed Guards On Vessels
May 16, 2011
Britain is preparing to give firm legal backing to the deployment of armed guards on UK-flag ships.
Legislation is being drawn up that will formally accept the use of private security personnel on ships sailing through waters where pirates are active.
Although many ships are known to have armed protection, including a considerable number operated by UK-based companies, the legal position remains uncertain. Both the shipowners who employ armed personnel and the guards themselves could, technically, be in breach of the law.
The UK is now poised to remedy that situation, changing the law where necessary to ensure shipowners whose vessels have firearms on board are not at risk of prosecution. The British government is thought to be one of the first to promise statutory changes. Denmark has taken similar action
“We have to accept [piracy] is happening, but if a UK-registered ship has armed security on board, I must make sure the legislation is fit for purpose,” UK shipping minister Mike Penning told Lloyd’s List.

(more…)

Wednesday, May 4, 2011

Legal News: Former Attorney General John Ashcroft To Become Independent Director Of Xe Services

This is a very interesting move, and bravo to the investors and to Xe for bringing on this heavy weight. John Ashcroft is definitely taking on a risky move as well, and I salute his courage for jumping on board.

So what does this mean in terms of the future of Xe? There are three things that come to mind.  The first is the ongoing litigation that Xe has been up against, both by lawsuits and with the stuff going on between the US Gov and the company over various incidents. The second is the legally complex and highly dangerous missions that Xe is a part of, and especially as the DoS builds and expands their army of private security contractors. Third is how to structure the companies policies to best fit in with the new codes of conduct and licenses that companies will have to abide by as budgets are approved and laws are implemented.

Probably the one thing that keeps coming to my mind about this industry is that companies will continue to risk a lot, and in order to protect themselves legally, they have to have an army of lawfare warriors. That whole saying of ‘send guns, money, and lawyers’ is absolutely true, and the companies that want to survive and continue to provide their services, need really kick ass legal firms or legal eagles to protect them.

It will be a complex legal environment as we press forward in this war, and as we involve industry in the counter-piracy or counter-transnational criminal organizations game, and picking a former Attorney General of the United States (with all of his connections and influence) is a good move to help navigate that.

What is also interesting about this move, is that having him on board might help to attract a CEO and/or management team of a higher caliber.  It will add ‘value’ to the company, because they have added a significant player to the team.  These things matter at the upper level, and the investors are doing all they can to not only maintain the company’s current value, but to increase it and grow.  And if the customer (meaning the US government) knows that the company has a high level legal heavy weight and a strong lawfare army, then that gives them and the tax paying public a little bit more of a warm and fuzzy about the intent of the company. The narrative says that ‘the company wants to do good, and provide an excellent service for it’s clients’. –Matt

Former Attorney General John Ashcroft to Become Independent Director of Xe Services
Past Department of Justice Head to Chair Governance Subcommittee
May 04, 2011
USTC Holdings, LLC, the investor consortium that acquired Xe Services, LLC, including its main holding U.S. Training Center, Inc. (“USTC”) in December 2010, today announced that former U.S. Attorney General John Ashcroft will serve as an Independent Director of the company. USTC is a leading provider of training and security services focused on worldwide operations in support of the United States Government and other customers.
“Attorney General Ashcroft’s accomplished career will certainly provide a strong reference for the Company as we continue to strengthen its governance and accountability.” (more…)

Sunday, April 24, 2011

Letter Of Marque: Rhode Island Governor Chafee Issues Ceremonial LoM To Privateer Re-enactors, Despite Article 1, Section 10 Of The US Constitution

Mr. Dorman explained, “Historically this document would separate a legitimate privateer from an outright pirate.” Letters of Marque were issued frequently during colonial times and through the American Revolution as a way to help protect shipping and give naval support. The organization’s ceremonial commission is the first to be signed in Rhode Island since Governor William Jones issued letters of marque during the War of 1812.

Now this is cool. This historical re-enactor group is trying to draw attention to their state’s history with privateering, and they actually got the governor of the state to issue a ceremonial Letter of Marque (see below).

I guess you could also call this a ‘ceremonial violation’ of Article 1, Section 10 of the US Constitution? lol Hopefully no one has a fit about the whole thing… The best part though is the recognition of this concept and importance to US history, by a state’s governor! –Matt


Ahoy! RI ‘pirates’ get governor’s commission
April 12, 2011
PROVIDENCE, R.I.—Shiver me timbers! A group of “pirates” has been granted a commission by the governor of Rhode Island.
The group of about 20 pirate re-enactors, called the Rhode Island Pirate Players, was granted a ceremonial so-called Letter of Marque (MARK’) by Chafee this week. The letter authorizes the group to “arm, furnish and equip themselves” to educate the public about the state’s pirate and privateer history. It also requests that captains who meet them at sea not give them any trouble.
The group’s founder and leader Casey C. Dorman says he asked Chafee’s office for the letter as a way to raise awareness. Rhode Island was once a haven for pirates, and Dorman says it’s one of the most interesting chapters in state history.
Story here.
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The Rhode Island Pirate Players Receive Letter of Marque
PROVIDENCE , April 12 /–The Rhode Island Pirate Players today announced that they have received a Letter of Marque, also known as a Privateering Commission, from Governor Lincoln Chafee.
“We are very excited that Governor Chafee wants to help us in our mission to educate the public about the often overlooked history of pirate and privateer activity in the state,” Casey C. Dorman, Founder and CEO of the Rhode Island Pirate Players stated. The Rhode Island Pirate Players approached the governor in the hope that formal recognition would help bring awareness to their educational mission.
Mr. Dorman explained, “Historically this document would separate a legitimate privateer from an outright pirate.” Letters of Marque were issued frequently during colonial times and through the American Revolution as a way to help protect shipping and give naval support. The organization’s ceremonial commission is the first to be signed in Rhode Island since Governor William Jones issued letters of marque during the War of 1812.
About The Rhode Island Pirate Players
The Rhode Island Pirate Players are a living history organization dedicated to educating the public about Rhode Island ’s pirate and privateer history. They are available for educational presentations, living history events, as well as film and more. The RIPP also has a walking tour operating in Newport through the summer called Dead Men’s Tales. The Rhode Island Pirate Players are willing to travel, and have performed throughout New England, and as far south as the Carolinas .
Link to website here.
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Article 1 – The Legislative Branch

Section 10 – Powers Prohibited of States
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it’s inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.
No State shall, without the Consent of Congress, lay any duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.

Thursday, April 21, 2011

Legal News: DoD General Counsel Issues Guidance On Tax Exemptions For Contractors And Contractor Personnel In Iraq And Afghanistan

The Government of the United States of America, its military and civilian personnel, contractors, and contractor personnel shall not be liable to pay any tax or similar charge assessed within Afghanistan…. Acquisition of articles and services in the republic of Afghanistan by or on behalf of the Government of the United States of America in implementing this agreement shall not be subject to any taxes, customs duties or similar charges in Afghanistan. -From the US/Afghan SOFA

Below I have posted both fact sheets that detail exactly what parts of the SOFA agreements we signed with Iraq and Afghanistan that details these exemptions. So this is the battle line that the US government has drawn, and these are the agreements between the US and these countries.  So if you think you or your company is being wrongly taxed or charged by government folks in these countries, you need to let your company know and remind all parties of what the position of the US government is on this matter. If you give these folks an inch, they will take a mile. –Matt

DoD General Counsel Issues Guidance on Tax Exemptions for Contractors and Contractor Personnel in Iraq and Afghanistan
April 20, 2011
The United States is bound by two distinct international agreements which contain specific provisions regarding the tax exemptions afforded to U.S. contractors and U.S. contractor employees in Iraq and Afghanistan. In Afghanistan, the Status of Forces Agreement (SOFA) was entered into force on May 28, 2003. In Iraq, the U.S.-Iraq Security Agreement was entered into force on January 1, 2009. Both agreements provide broad tax exemptions for U.S. government personnel, including contractors and contractor employees doing business on behalf of the U.S. government. The terms of the agreements generally do not provide tax exemptions for persons or legal entities normally resident in Iraq or Afghanistan.
On March 28, 2011, DoD/OGC issued two fact sheets—one for Iraq and one for Afghanistan—addressing the tax exemptions for U.S. federal government contractors and contractor employees conducting business in these countries:
DoD/OGC fact sheet on Tax Exemptions for United States Contractors and United States Contract Personnel-Iraq
DoD/OGC fact sheet on Tax Exemptions for United States Contractors and United States Contract Personnel-Afghanistan

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