Waxman Looking to Take Out Blackwater

Henry Waxman (D-CA) is Blackwater International’s misrepresentation of itself as a small business to get contracts.

If fraud can be shown, they could be declared ineligible for future government contracts, which would, thankfully, put them out of business.

As Waxman explained in a memo (PDF) accompanying the launch of the three investigations, they each hinge on Blackwater’s self-classification of its workers as contractors rather than employees. Waxman argues that classifying security personnel as contractors has allowed Blackwater to apply for small business contracts for which it wasn’t eligible, underpay income taxes and workers benefits, and avoid complying with DOL anti-discrimination requirements for federal contractors.

As useless as Pelosi is sometimes, it’s good for Waxman to have subpoena power.

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