http://www.msnbc.msn.com/id/15538359/Contractors rarely penalized for misdeeds
Contractors rarely penalized for misdeeds
Firms operating in Iraq take advantage of loopholes and lax oversight
By Griff Witte
The Washington Post
Updated: 1:36 a.m. CT Nov 4, 2006
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"From a command-and-control point of view, I think we've got a problem. And it's going to be very difficult to solve," said Scott L. Silliman, executive director of the Center for Law, Ethics and National Security at Duke University.
For military contractors, Silliman said, it is unclear which laws apply. For example, they are not subject to the Uniform Code of Military Justice, which governs soldiers' behavior. A law passed in 2000 that is supposed to hold contractors responsible if they commit crimes in war zones has never been tested.
Several civil cases have been tossed out of court for lack of jurisdiction. In September, for example, a judge dismissed a lawsuit filed by former Halliburton Co. truck drivers and their families who argued that the company knowingly sent a convoy into a raging battle without proper protection. A federal judge in Texas ruled that the Army, not Halliburton, was ultimately in charge and that the court could not "try a case set on a battlefield during wartime without an impermissible intrusion into powers expressly granted to the executive by the Constitution."
A similar case against the private military firm Blackwater USA has been allowed to proceed in North Carolina. But Blackwater has fought the case to the Supreme Court, enlisting high-caliber legal talent along the way -- including former Pentagon inspector general Joseph E. Schmitz and Whitewater prosecutor Kenneth W. Starr.
One contractor that had its day in court was Custer Battles LLC. Whistle-blowers claimed the firm used an elaborate string of shell companies to drive up profits, and last year a jury returned a $10 million verdict against the firm. But in August, a federal judge in Virginia overturned the ruling, saying the court did not have jurisdiction.
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