The Batista dictatorship was overthrown in January 1959 by Castro’s guerrilla forces. In March, the National Security Council (NSC) considered means to institute regime change. In May, the CIA began to arm guerrillas inside Cuba. “During the Winter of 1959-1960, there was a significant increase in CIA-supervised bombing and incendiary raids piloted by
exiled Cubans” based in the US. We need not tarry on what the US or its clients would do under such circumstances.
Cuba, however, did not respond with violent actions within the United States for revenge or deterrence. Rather, it followed the procedure required by international law. In July 1960, Cuba called on the UN for help, providing the Security Council with records of some twenty bombings, including names of pilots, plane registration numbers, unexploded bombs, and other specific details, alleging considerable damage and casualties and calling for resolution of the conflict through diplomatic channels. US Ambassador Henry Cabot Lodge responded by giving his “assurance [that] the United States has no aggressive purpose against Cuba.” Four months before, in March 1960, his government had made a formal decision in secret to overthrow the Castro government, and preparations for the Bay of Pigs invasion were well advanced.
Washington was concerned that Cubans might try to defend themselves. CIA chief Allen Dulles therefore urged Britain not to provide arms to Cuba. His “main reason,” the British ambassador reported to London, “was that this might lead the Cubans to ask for Soviet or Soviet bloc arms,” a move that “would have a tremendous effect,” Dulles pointed out, allowing Washington to portray Cuba as a security threat to the hemisphere, following the script that had worked so well in Guatemala. Dulles was referring to Washington’s successful demolition of Guatemala’s first democratic experiment, a ten-year interlude of hope and progress, greatly feared in Washington because of the enormous popular support reported by US intelligence and the “demonstration effect” of social and economic measures to benefit the large majority. The Soviet threat was routinely invoked, abetted by Guatemala’s appeal to the Soviet bloc for arms after the US had threatened attack and cut off other sources of supply. The result was a half-century of horror, even worse than the US-backed tyranny that came before.
For Cuba, the schemes devised by the doves were similar to those of CIA director Dulles. Warning President Kennedy about the “inevitable political and diplomatic fall-out” from the planned invasion of Cuba by a proxy army, Arthur Schlesinger suggested efforts to trap Castro in some action that could be used as a pretext for invasion: “One can conceive a black operation in, say, Haiti which might in time lure Castro into sending a few boatloads of men on to a Haitian beach in what could be portrayed as an effort to overthrow the Haitian regime,… then the moral issue would be clouded, and the anti-US campaign would be hobbled from the start.” Reference is to the regime of the murderous dictator “Papa Doc” Duvalier, which was backed by the US (with some reservations), so that an effort to help Haitians overthrow it would be a crime.
Eisenhower’s March 1960 plan called for the overthrow of Castro in favor of a regime “more devoted to the true interests of the Cuban people and more acceptable to the U.S.,” including support for “military operation on the island” and “development of an adequate paramilitary force outside of Cuba.” Intelligence reported that popular support for Castro was high, but the US would determine the “true interests of the Cuban people.” The regime change was to be carried out “in such a manner as to avoid any appearance of U.S. intervention,” because of the anticipated reaction in Latin America and the problems of doctrinal management at home.
Operation Mongoose
The Bay of Pigs invasion came a year later, in April 1961, after Kennedy had taken office. It was authorized in an atmosphere of “hysteria” over Cuba in the White House, Robert McNamara later testified before the Senate’s Church Committee. At the first cabinet meeting after the failed invasion, the atmosphere was “almost savage,” Chester Bowles noted privately: “there was an almost frantic reaction for an action program.” At an NSC meeting two days later, Bowles found the atmosphere “almost as emotional” and was struck by “the great lack of moral integrity” that prevailed. The mood was reflected in Kennedy’s public pronouncements: “The complacent, the self-indulgent, the soft societies are about to be swept away with the debris of history. Only the strong . . . can possibly survive,” he told the country, sounding a theme that would be used to good effect by the Reaganites during their own terrorist wars. Kennedy was aware that allies “think that we’re slightly demented” on the subject of Cuba, a perception that persists to the present.
Kennedy implemented a crushing embargo that could scarcely be endured by a small country that had become a “virtual colony” of the US in the sixty years following its “liberation” from Spain. He also ordered an intensification of the terrorist campaign: “He asked his brother, Attorney-General Robert Kennedy, to lead the top-level interagency group that oversaw Operation Mongoose, a program of paramilitary operations, economic warfare, and sabotage he launched in late 1961 to visit the ‘terrors of the earth’ on Fidel Castro and, more prosaically, to topple him.”
The terrorist campaign was “no laughing matter,” Jorge Dominguez writes in a review of recently declassified materials on operations under Kennedy, materials that are “heavily sanitized” and “only the tip of the iceberg,” Piero Gleijeses adds.
Operation Mongoose was “the centerpiece of American policy toward Cuba from late 1961 until the onset of the 1962 missile crisis,” Mark White reports, the program on which the Kennedy brothers “came to pin their hopes.” Robert Kennedy informed the CIA that the Cuban problem carries “the top priority in the United States Government — all else is secondary — no time, no effort, or manpower is to be spared” in the effort to overthrow the Castro regime. The chief of Mongoose operations, Edward Lansdale, provided a timetable leading to “open revolt and overthrow of the Communist regime” in October 1962. The “final definition” of the program recognized that “final success will require decisive U.S. military intervention,” after terrorism and subversion had laid the basis. The implication is that US military intervention would take place in October 1962 — when the missile crisis erupted.
In February 1962, the Joint Chiefs of Staff approved a plan more extreme than Schlesinger’s: to use “covert means . . . to lure or provoke Castro, or an uncontrollable subordinate, into an overt hostile reaction against the United States; a reaction which would in turn create the justification for the US to not only retaliate but destroy Castro with speed, force and determination.” In March, at the request of the DOD Cuba Project, the Joint Chiefs of Staff submitted a memorandum to Defense Secretary Robert McNamara outlining “pretexts which they would consider would provide justification for US military intervention in Cuba.” The plan would be undertaken if “a credible internal revolt is impossible of attainment during the next 9-10 months,” but before Cuba could establish relations with Russia that might “directly involve the Soviet Union.”
A prudent resort to terror should avoid risk to the perpetrator.
The March plan was to construct “seemingly unrelated events to camouflage the ultimate objective and create the necessary impression of Cuban rashness and responsibility on a large scale, directed at other countries as well as the United States,” placing the US “in the apparent position of suffering defensible grievances [and developing] an international image of Cuban threat to peace in the Western Hemisphere.” Proposed measures included blowing up a US ship in Guantanamo Bay to create “a ‘Remember the Maine’ incident,” publishing casualty lists in US newspapers to “cause a helpful wave of national indignation,” portraying Cuban investigations as “fairly compelling evidence that the ship was taken under attack,” developing a “Communist Cuban terror campaign [in Florida] and even in Washington,” using Soviet bloc incendiaries for cane-burning raids in neighboring countries, shooting down a drone aircraft with a pretense that it was a charter flight carrying college students on a holiday, and other similarly ingenious schemes — not implemented, but another sign of the “frantic” and “savage” atmosphere that prevailed.
On August 23 the president issued National Security Memorandum No. 181, “a directive to engineer an internal revolt that would be followed by U.S. military intervention,” involving “significant U.S. military plans, maneuvers, and movement of forces and equipment” that were surely known to Cuba and Russia. Also in August, terrorist attacks were intensified, including speedboat strafing attacks on a Cuban seaside hotel “where Soviet military technicians were known to congregate, killing a score of Russians and Cubans”; attacks on British and Cuban cargo ships; the contamination of sugar shipments; and other atrocities and sabotage, mostly carried out by Cuban exile organizations permitted to operate freely in Florida. A few weeks later came “the most dangerous moment in human history.”
“A Bad Press in Some Friendly Countries”
Terrorist operations continued through the tensest moments of the missile crisis. They were formally canceled on October 30, several days after the Kennedy and Khrushchev agreement, but went on nonetheless. On November 8, “a Cuban covert action sabotage team dispatched from the United States successfully blew up a Cuban industrial facility,” killing 400 workers, according to the Cuban government. Raymond Garthoff writes that “the Soviets could only see [the attack] as an effort to backpedal on what was, for them, the key question remaining: American assurances not to attack Cuba.” These and other actions reveal again, he concludes, “that the risk and danger to both sides could have been extreme, and catastrophe not excluded.”
After the crisis ended, Kennedy renewed the terrorist campaign. Ten days before his assassination he approved a CIA plan for “destruction operations” by US proxy forces “against a large oil refinery and storage facilities, a large electric plant, sugar refineries, railroad bridges, harbor facilities, and underwater demolition of docks and ships.” A plot to kill Castro was initiated on the day of the Kennedy assassination. The campaign was called off in 1965, but “one of Nixon’s first acts in office in 1969 was to direct the CIA to intensify covert operations against Cuba.”
Of particular interest are the perceptions of the planners. In his review of recently released documents on Kennedy-era terror, Dominguez observes that “only once in these nearly thousand pages of documentation did a U.S. official raise something that resembled a faint moral objection to U.S.-government sponsored terrorism”: a member of the NSC staff suggested that it might lead to some Russian reaction, and raids that are “haphazard and kill innocents… might mean a bad press in some friendly countries.” The same attitudes prevail throughout the internal discussions, as when Robert Kennedy warned that a full-scale invasion of Cuba would “kill an awful lot of people, and we’re going to take an awful lot of heat on it.”
Terrorist activities continued under Nixon, peaking in the mid-1970s, with attacks on fishing boats, embassies, and Cuban offices overseas, and the bombing of a Cubana airliner, killing all seventy-three passengers. These and subsequent terrorist operations were carried out from US territory, though by then they were regarded as criminal acts by the FBI.
So matters proceeded, while Castro was condemned by editors for maintaining an “armed camp, despite the security from attack promised by Washington in 1962.” The promise should have sufficed, despite what followed; not to speak of the promises that preceded, by then well documented, along with information about how well they could be trusted: e.g., the “Lodge moment” of July 1960.
On the thirtieth anniversary of the missile crisis, Cuba protested a machine-gun attack against a Spanish-Cuban tourist hotel; responsibility was claimed by a group in Miami. Bombings in Cuba in 1997, which killed an Italian tourist, were traced back to Miami. The perpetrators were Salvadoran criminals operating under the direction of Luis Posada Carriles and financed in Miami. One of the most notorious international terrorists, Posada had escaped from a Venezuelan prison, where he had been held for the Cubana airliner bombing, with the aid of Jorge Mas Canosa, a Miami businessman who was the head of the tax-exempt Cuban-American National Foundation (CANF). Posada went from Venezuela to El Salvador, where he was put to work at the Ilopango military air base to help organize US terrorist attacks against Nicaragua under Oliver North’s direction.
Posada has described in detail his terrorist activities and the funding for them from exiles and CANF in Miami, but felt secure that he would not be investigated by the FBI. He was a Bay of Pigs veteran, and his subsequent operations in the 1960s were directed by the CIA. When he later joined Venezuelan intelligence with CIA help, he was able to arrange for Orlando Bosch, an associate from his CIA days who had been convicted in the US for a bomb attack on a Cuba-bound freighter, to join him in Venezuela to organize further attacks against Cuba. An ex-CIA official familiar with the Cubana bombing identifies Posada and Bosch as the only suspects in the bombing, which Bosch defended as “a legitimate act of war.” Generally considered the “mastermind” of the airline bombing, Bosch was responsible for thirty other acts of terrorism, according to the FBI. He was granted a presidential pardon in 1989 by the incoming Bush I administration after intense lobbying by Jeb Bush and South Florida Cuban-American leaders, overruling the Justice Department, which had found the conclusion “inescapable that it would be prejudicial to the public interest for the United States to provide a safe haven for Bosch [because] the security of this nation is affected by its ability to urge credibly other nations to refuse aid and shelter to terrorists.”
Economic Warfare
Cuban offers to cooperate in intelligence-sharing to prevent terrorist attacks have been rejected by Washington, though some did lead to US actions. “Senior members of the FBI visited Cuba in 1998 to meet their Cuban counterparts, who gave [the FBI] dossiers about what they suggested was a Miami-based terrorist network: information which had been compiled in part by Cubans who had infiltrated exile groups.” Three months later the FBI arrested Cubans who had infiltrated the US-based terrorist groups. Five were sentenced to long terms in prison.
The national security pretext lost whatever shreds of credibility it might have had after the collapse of the Soviet Union in 1991, though it was not until 1998 that US intelligence officially informed the country that Cuba no longer posed a threat to US national security. The Clinton administration, however, insisted that the military threat posed by Cuba be reduced to “negligible,” but not completely removed. Even with this qualification, the intelligence assessment eliminated a danger that had been identified by the Mexican ambassador in 1961, when he rejected JFK’s attempt to organize collective action against Cuba on the grounds that “if we publicly declare that Cuba is a threat to our security, forty million Mexicans will die laughing.”
In fairness, however, it should be recognized that missiles in Cuba did pose a threat. In private discussions the Kennedy brothers expressed their fears that the presence of Russian missiles in Cuba might deter a US invasion of Venezuela. So “the Bay of Pigs was really right,” JFK concluded.
The Bush I administration reacted to the elimination of the security pretext by making the embargo much harsher, under pressure from Clinton, who outflanked Bush from the right during the 1992 election campaign. Economic warfare was made still more stringent in 1996, causing a furor even among the closest US allies. The embargo came under considerable domestic criticism as well, on the grounds that it harms US exporters and investors — the embargo’s only victims, according to the standard picture in the US; Cubans are unaffected. Investigations by US specialists tell a different story. Thus, a detailed study by the American Association for World Health concluded that the embargo had severe health effects, and only Cuba’s remarkable health care system had prevented a “humanitarian catastrophe”; this has received virtually no mention in the US.
The embargo has effectively barred even food and medicine. In 1999 the Clinton administration eased such sanctions for all countries on the official list of “terrorist states,” apart from Cuba, singled out for unique punishment. Nevertheless, Cuba is not entirely alone in this regard. After a hurricane devastated West Indian islands in August 1980, President Carter refused to allow any aid unless Grenada was excluded, as punishment for some unspecified initiatives of the reformist Maurice Bishop government. When the stricken countries refused to agree to Grenada’s exclusion, having failed to perceive the threat to survival posed by the nutmeg capital of the world, Carter withheld all aid. Similarly, when Nicaragua was struck by a hurricane in October 1988, bringing starvation and causing severe ecological damage, the current incumbents in Washington recognized that their terrorist war could benefit from the disaster, and therefore refused aid, even to the Atlantic Coast area with close links to the US and deep resentment against the Sandinistas. They followed suit when a tidal wave wiped out Nicaraguan fishing villages, leaving hundreds dead and missing in September 1992. In this case, there was a show of aid, but hidden in the small print was the fact that apart from an impressive donation of $25,000, the aid was deducted from assistance already scheduled. Congress was assured, however, that the pittance of aid would not affect the administration’s suspension of over $100 million of aid because the US-backed Nicaraguan government had failed to demonstrate a sufficient degree of subservience.
US economic warfare against Cuba has been strongly condemned in virtually every relevant international forum, even declared illegal by the Judicial Commission of the normally compliant Organization of American States. The European Union called on the World Trade Organization to condemn the embargo. The response of the Clinton administration was that “Europe is challenging ‘three decades of American Cuba policy that goes back to the Kennedy Administration,’ and is aimed entirely at forcing a change of government in Havana.” The administration also declared that the WTO has no competence to rule on US national security or to compel the US to change its laws. Washington then withdrew from the proceedings, rendering the matter moot.
Successful Defiance
The reasons for the international terrorist attacks against Cuba and the illegal economic embargo are spelled out in the internal record. And no one should be surprised to discover that they fit a familiar pattern — that of Guatemala a few years earlier, for example.
From the timing alone, it is clear that concern over a Russian threat could not have been a major factor. The plans for forceful regime change were drawn up and implemented before there was any significant Russian connection, and punishment was intensified after the Russians disappeared from the scene. True, a Russian threat did develop, but that was more a consequence than a cause of US terrorism and economic warfare.
In July 1961 the CIA warned that “the extensive influence of ‘Castroism’ is not a function of Cuban power. . . . Castro’s shadow looms large because social and economic conditions throughout Latin America invite opposition to ruling authority and encourage agitation for radical change,” for which Castro’s Cuba provided a model. Earlier, Arthur Schlesinger had transmitted to the incoming President Kennedy his Latin American Mission report, which warned of the susceptibility of Latin Americans to “the Castro idea of taking matters into one’s own hands.” The report did identify a Kremlin connection: the Soviet Union “hovers in the wings, flourishing large development loans and presenting itself as the model for achieving modernization in a single generation.” The dangers of the “Castro idea” are particularly grave, Schlesinger later elaborated, when “the distribution of land and other forms of national wealth greatly favors the propertied classes” and “the poor and underprivileged, stimulated by the example of the Cuban revolution, are now demanding opportunities for a decent living.” Kennedy feared that Russian aid might make Cuba a “showcase” for development, giving the Soviets the upper hand throughout Latin America.
In early 1964, the State Department Policy Planning Council expanded on these concerns: “The primary danger we face in Castro is . . . in the impact the very existence of his regime has upon the leftist movement in many Latin American countries. . . . The simple fact is that Castro represents a successful defiance of the US, a negation of our whole hemispheric policy of almost a century and a half.” To put it simply, Thomas Paterson writes, “Cuba, as symbol and reality, challenged U.S. hegemony in Latin America.” International terrorism and economic warfare to bring about regime change are justified not by what Cuba does, but by its “very existence,” its “successful defiance” of the proper master of the hemisphere. Defiance may justify even more violent actions, as in Serbia, as quietly conceded after the fact; or Iraq, as also recognized when pretexts had collapsed.
Outrage over defiance goes far back in American history. Two hundred years ago, Thomas Jefferson bitterly condemned France for its “attitude of defiance” in holding New Orleans, which he coveted. Jefferson warned that France’s “character [is] placed in a point of eternal friction with our character, which though loving peace and the pursuit of wealth, is high-minded.” France’s “defiance [requires us to] marry ourselves to the British fleet and nation,” Jefferson advised, reversing his earlier attitudes, which reflected France’s crucial contribution to the liberation of the colonies from British rule. Thanks to Haiti’s liberation struggle, unaided and almost universally opposed, France’s defiance soon ended, but the guiding principles remain in force, determining friend and foe.
[Note that this passage (pages 80-90) is fully footnoted in Hegemony or Survival. Chomsky's discussion of the Cuban missile crisis itself can be found elsewhere in the same chapter of the book.]
Reprinted by permission of Metropolitan Books, an imprint of Henry Holt and Company, LLC.
Copyright C by Aviva Chomsky, Diane Chomsky, and Harry Chomsky. All rights reserved.
“The Super Bowl of Disasters”: Profiting from Crisis in Post-Earthquake Haiti February 17, 2012
Posted by rogerhollander in Caribbean, Foreign Policy, Haiti, Imperialism.Tags: ashbritt, beverly bell, caribbean, ch2m hill, chf, deepa panchang, haiti, haiti aid, haiti earthquake, michel martelly, roger hollander, tory field, triple canopy, U.S. imperialism, USAID
add a comment
As Americans were gearing up for last week’s Super Bowl championship, Haiti’s president Michel Martelly was on a plane to the World Economic Forum to recruit players interested in what one businessman dubbed “the Super Bowl of Disasters” – Haiti’s devastating 2010 earthquake. The Irish-owned cell phone company Digicel footed his trip there, and hosted a regional business tour complete with a gala ball before his return to a country still reeling from crisis conditions in housing, jobs, and basic rights.
Haiti’s status as prime-time jostling space for prospective investors is not new. Many a corporation, lobbyist, and consultant has seen Haiti’s losses as their gain, leveraging humanitarianism for profit. Plenty of the $1.1 billion in disaster aid has gone not to desperate Haitians but to inside-the-Beltway contractors. Often the very same corporations have wrested financial and political gain from the wars in Iraq and Afghanistan, the countries hit by the 2004 tsunami in the Indian Ocean, the Gulf Coast after Hurricane Katrina, New Orleans after the ensuing flood of 2005, and lots of other places. The same deals have been cut over Haiti in the past, too, particularly during periods of political instability.
Textile workers producing for foreign clothing companies protesting last October for union rights and better working conditions. (photo: Ansel Herz)
The earthquake has provided a fresh wave of opportunity. In the first year after the earthquake, the US government awarded more than 1,500 contracts worth $267 million. All went to US firms except 20, worth $4.3 million, which went to Haitian businesses. Among the American corporations that received contracts, we’ve seen everything: many millions going to companies that had had previous contracts cancelled for bad practices, that had paid out as much as eight-figure settlements for violence happening under their watch, that had been investigated by Congress for gaming the system, or that had been the subject of federal reports accusing wastage of funds. We’ve seen corporate executives and members of Congress going through a revolving door and leveraging both sides for contracts. We’ve seen public funds given without any competition or transparency, quite a few to friends of the Clintons and other well-placed insiders.
Local labor and production, which are critical elements in economic recovery, have been trumped for American business profits. According to federal procurement data, among contracts which provide products (as opposed to services), 77% were for products manufactured in the US. They don’t list which, if any, of the remaining 23% involve any Haitian materials or labor.
Two months after the earthquake, companies gathered in a luxury hotel in Miami for a “Haiti Summit” to discuss post-earthquake contracting possibilities. The meeting was sponsored by the International Peace Operations Association (IPOA), but these were no peaceniks. Their members are predominantly private mercenary companies that enforce ‘security’ in war and disaster zones for the US government because, unlike elected entities, they can completely avoid public scrutiny and accountability. They included such companies as Triple Canopy, which took over Blackwater’s contract in Iraq. One of the corporate representatives at the Summit described the outlook: “Their infrastructure is pretty much destroyed, communications are destroyed, there’s a lot of opportunities there for companies, particularly US countries [sic] because of the close proximity.” The Summit was apparently worthwhile, as US government paid out more than $10 million to the industry for “guard services,” and almost $20,000 for riot shields and suits.
Below are a few examples of post-earthquake contracts and grants, selected to show just some of the problems at play. They offer a small glimpse into a much larger, secretive world of disaster deals. We’re grateful to our investigative journalist colleagues who, alongside us, have kept heavy on the scent of these corporations and brought buried information to light.
* * *
“American corporations and their stakeholders must understand how helping Haiti over the long term also helps them,” said the non-profit CHF International in its March 2010 board report. “By contributing to Haiti’s reconstruction in a lasting, meaningful way, companies will be helping to build a new, more vibrant Caribbean market for their own goods and services.”
CHF’s involvement demonstrates how even non-profits can drive development that props up American business interests on the backs of poor Haitians. What CHF refers to as “helping Haiti” has meant using US tax dollars to underwrite textile sweatshops, making it easier and more profitable to score the cheapest source of labor in the hemisphere. In 2006, USAID gave CHF a $104 million, 4-year contract to help “existing industries to increase their capacity, efficiency and reach new markets,” primarily through the export textile industry. The money subsidized CHF’s creation of infrastructure such as roads around industrial areas and training of factory workers on skills such as “how to work in a formal work environment.” Bolstered by additional USAID funding, this project continued after the earthquake.
CHF’s post-earthquake USAID contract, for $20.9 million, went to clean-up projects, including cash-for-work. Cash-for-work meant camp residents engaging in hired-hand projects such as digging drainage ditches and clearing debris, for a period of a few weeks. The scheme has come under fire by camp residents and human rights groups, with even a USAID evaluation raising some serious critiques. The jobs are unpredictable, workers have said, and while the short duration can palliate personal crisis for the moment, the program quickly returns the worker’s family to its desperate state. Those hired are paid officially at the unlivable minimum daily wage of 200 gourdes, or US$5, though unofficially they often earn less. A Haiti Grassroots Watch exposé found, furthermore, that cash-for-work hiring is often based on corruption, with many workers having to pay a ‘kickback,’ negotiate sex (in the case of women) for a job, or affiliate with political parties or candidates. USAID also noted that cash-for-work programs it funded increased risks of “serious and avoidable” accidents on the job “by failing to develop and enforce consistent workplace safety rules and accident procedures.”
CHF’s projects, based on factory jobs and cash-for-work, have given neither livable incomes to employees nor offered development opportunities to the nation. Meanwhile, CHF has gained humanitarian clout and an influx of funding, and its garment industry partners sit happily with the perks.
* * *
Using tried-and-true strategies of political manipulation, some corporations have been able to edge their way into post-earthquake contracts despite histories of fraud and corruption.
AshBritt Environmental, for instance, has a record of disaster response elsewhere that spells trouble for Haiti. The company had received $900 million in contracts for Hurricane Katrina clean-up, after hiring lobbyists formerly involved in state government. An MSNBC investigation later brought to light complaints by local contractors, a mayor, and local legislators that the company’s work was too slow, that it overcharged, and that it was not hiring local contractors. The extent of “layer cake” contracting was so extreme that in one case, AshBritt was paid $23 per cubic yard of debris removed but subcontracted through three middleman companies so that the company that actually removed the rubble received $3 per cubic yard.) Even a 2006 federal report accused the company of wasting money in this subcontractor layering after Katrina.
Given its experience, AshBritt wasted no time unleashing its skills in lobbying and political pressure to get in on the Haiti game. Early in 2010, the company paid $90,000 to a lobbying firm to pressure the government for Haiti contracts, according to disclosure records described in the press. In a prime instance of revolving door between public and private sectors, one of the lobbyists working on the case was the former chief of staff for Senator John Kerry. Kerry, in turn, was the senator who co-sponsored the legislation for Haiti relief funding.
With influential people circulating between the givers and receivers of funds, AshBritt was confident enough about future contracts that it spent an initial $25 million setting up for anticipated operations in Haiti with a soccer field-sized base camp and services to house future project managers. In July 2010, AshBritt won a $500,000 US government contract for debris removal, the first of what the company anticipated would be many contracts to come their way. Continuing the revolving door trend, another lobbyist for the firm was the former USAID Mission Director in Iraq, Lewis Lucke, who was paid $30,000 per month to help win contracts via a partnership venture AshBritt set up. Lucke claimed he “played an integral role” in obtaining three contracts for the company, including $10 million from the World Bank and about $10 million more from the Haitian government (one of the first major government contracts for debris removal). As of this writing, not even the company’s website contains an update on what work it has or has not completed in Haiti.
* * *
Like AshBritt, CH2M Hill, a large engineering and construction firm, should have raised warning signals as a company to be hired on the taxpayer dollar. A government database that monitors federal contracts reveals a track record of corruption, listing nine instances of misconduct for the company since 1995. In one case, the company was paid $4.1 million for a contract in Iraq though no work was actually completed. On the Gulf Coast, a US government investigation of $45 million paid to CH2M and the three other companies in no-bid contracts for Katrina response was declared wasteful spending. CH2M was also accused in a congressional investigation in 1992 of misusing money during its cleanup of toxic waste sites in the U.S. More than two million dollars of this contract were allegedly used for “unallowable and questionable costs,” such as $11,379 for a Christmas party and $2750 for specialty chocolates. The company is listed in the top 50 of U.S.-based contractors and has been a major player in wartime contracting in Iraq and Afghanistan.
The track record was nothing that some strategic lobbying efforts couldn’t mitigate, however. The lobbyist who headed up CH2M Hill’s efforts to win contracts in Haiti was Larry LaRocco, a former congressman from Idaho who now runs his own lobbying firm. And unsurprisingly, the company spent half a million dollars in political contributions in 2010. Thus equipped with politicians in its pocket, CH2M was well-positioned to compete in the latest contract game. It received its first post-earthquake contract just days after the disaster, and was given a joint contract with KBR Global Service (itself notorious due to its Iraq and Afghanistan activities) for facilities operations support at the end of 2010.
* * *
In the case of a few other contracts that we know to be operating in Haiti, we’ve spent hour after hour on the scent. We’ve scoured internet resources, news articles, and company websites to track companies we know received post-earthquake contracts in Haiti. Nothing. Not even a mention, sometimes, in the 100-plus-page 2010 annual reports.
What we have been unable to uncover is at least as alarming as what we have learned about some of the firms receiving millions from the US government, and what they have done with those millions. We wonder whether the US government has had any more knowledge or oversight of the corporate actions than have the corporation’s investors. As for the American people, they have no way to know how their money has been spent or what has been done in their names. The lack of transparency has also given a green light to profiteers to neglect standards, quality, and honesty.
There is one group for whom the secrecy, foul play, taking of power that should never be taken, giving away of what should never be given away, matters most of all: Haitians, the ones whose country is being treated like a Monopoly game. They alone will have to live with the long-term outcome of what foreign companies build, demolish, restructure, or steal in their country.
[A list of references can be found here.]
–>
Deepa Panchang is Education and Outreach Coordinator for Other Worlds. Since the 2010 earthquake in Haiti, Deepa has been involved in advocacy for human rights, particularly housing and health, for displaced Haitians living in camps. She has previously worked on community health projects in Nicaragua and India. Deepa is passionate about bringing gender and economic justice perspectives to bear in the realms of global health, aid, and trade.
Beverly Bell is the founder of Other Worlds and more than a dozen international organizations and networks, Beverly is also an Associate Fellow at the Institute for Policy Studies. Beverly has worked for more than three decades as an organizer, advocate, and writer in collaboration with social movements in Latin America, the Caribbean, Africa, and the U.S. She is the author of the book Walking on Fire: Haitian Women’s Stories of Survival and Resistance.