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Amy Goodman
NationofChange / Op-Ed
Published: Monday 1 August 2011
Just this week, after waging a legal battle for more than half a decade, Bunny Greenhouse won.

War Is A Racket

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Image: Marcia Annenberg
"Portrait of Two Women" depicting Army whistleblower Bunny Greenhouse

"War is a racket," wrote retired U.S. Marine Maj. Gen. Smedley D. Butler, in 1935. That statement, which is also the title of his short book on war profiteering, rings true today. One courageous civil servant just won a battle to hold war profiteers accountable. Her name is Bunnatine "Bunny" Greenhouse. She blew the whistle when her employer, the U.S. Army Corps of Engineers, gave a no-bid $7 billion contract to the Halliburton subsidiary Kellogg, Brown and Root (KBR) as the U.S. was about to invade Iraq. She was doing her job, trying to ensure a competitive bidding process would save the U.S. government money. For that, she was forced out of her senior position, demoted and harassed.

Just this week, after waging a legal battle for more than half a decade, Bunny Greenhouse won. The U.S. Army Corps of Engineers settled with Greenhouse for $970,000, representing full restitution for lost wages, compensatory damages and attorneys' fees.

Her "offense" was to challenge the KBR contract. It was weeks before the expected invasion of Iraq, in 2003, and Bush military planners predicted Saddam Hussein would blow up Iraqi oilfields, as happened with the U.S. invasion in 1991. The project, dubbed "Restore Iraqi Oil," or RIO, was created so that oilfield fires would be extinguished. KBR was owned then by Halliburton, whose CEO until 2000 was none other than then-Vice President Dick Cheney. KBR was the only company invited to bid.

Bunny Greenhouse told her superiors that the process was illegal. She was overridden. She said the decision to grant the contract to KBR came from the Office of the Secretary of Defense, run by VP Cheney's close friend, Donald Rumsfeld.

As Bunny Greenhouse told a congressional committee, "I can unequivocally state that the abuse related to contracts awarded to KBR represents the most blatant and improper contract abuse I have witnessed during the course of my professional career."

The oilfields were not set ablaze. Nevertheless, KBR was allowed to retool its $7 billion no-bid contract, to provide gasoline and other logistical support to the occupation forces. The contract was so-called cost-plus, which means KBR was not on the hook to provide services at a set price. Rather, it could charge its cost, plus a fixed percentage as profit. The more KBR charged, the more profit it made.

As the chief procurement officer, Greenhouse's signature was required on all contracts valued at more than $10 million. Soon after testifying about the egregious RIO contract, she was demoted, stripped of her top-secret clearance and began receiving the lowest performance ratings. Before blowing the whistle, she had received the highest ratings. Ultimately, she left work, facing an unbearably hostile workplace.

After years of litigation, attorney Michael Kohn, president of the National Whistleblowers Center, brought the case to a settlement. He said: "Bunny Greenhouse risked her job and career when she objected to the gross waste of federal taxpayer dollars and illegal contracting practices at the Army Corps of Engineers. She had the courage to stand alone and challenge powerful special interests. She exposed a corrupt contracting environment where casual and clubby contracting practices were the norm. Her courage led to sweeping legal reforms that will forever halt the gross abuse she had the courage to expose."

The National Whistleblowers Center's executive director, Stephen Kohn (brother of Michael Kohn) told me: "Federal employees have a very, very hard time blowing the whistle. ... I hope it's a turning point. The case was hard-fought. It should never have had to been filed. Bunny did the right thing."

According to Nobel Prize-winning economist Joe Stiglitz, the cost of the wars in Iraq and Afghanistan alone will exceed $5 trillion. With a cost like this, why isn't war central to the debate over the national debt?

Two-time Congressional Medal of Honor winner Maj. Gen. Smedley Butler had it right 75 years ago when he said of war: "It is possibly the oldest, easily the most profitable, surely the most vicious [racket]. ... It is the only one in which the profits are reckoned in dollars and the losses in lives ... It is conducted for the benefit of the very few, at the expense of the very many."

As President Barack Obama and Congress claim it is Medicare, Medicaid and Social Security that are breaking the budget, people should demand that they stop paying for war.

Denis Moynihan contributed research to this column.

Amy Goodman is the host of "Democracy Now!," a daily international TV/radio news hour airing on more than 900 stations in North America. She is the author of "Breaking the Sound Barrier," recently released in paperback and now a New York Times best-seller.

© 2011 Amy Goodman
Distributed by King Features Syndicate

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ABOUT Amy Goodman

Amy Goodman is the host of "Democracy Now!," a daily international TV/radio news hour airing on more than 900 stations in North America. She is the author of "Breaking the Sound Barrier," recently released in paperback and now a New York Times best-seller.

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35 comments on "War Is A Racket"

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Susan

August 08, 2011 1:08pm

Thank you Amy for writing about this courageous woman, vindicated and not forgotten.

Robert Aponte

August 05, 2011 11:03am

I agree with just about everything above. I think that Amy is great, but am disappointed if she really did support the invasion of Libya (though there were other "progressives" who allegedly supported it). Without taking on the "right and wrong" of it, one (especially if politically progressive) should at the very least object to the President's unilateral (meaning among branches of government) invading it when (1) we are so "broke" that thousands of teachers are being laid off, millions are unemployed for months, hundreds of thousands (if not also millions) are forclosed on, etc., etc., and (2) France and the UK already went in and can more easily handle the job without bankrupting their economies (according to the rosy scenarios that held at the time of the initial invasions, even if they proved to be untrue in the end), since they were/are not currently "on the brink," economically. And, of course, there is the hypocrisy of defending Libya at recent international hearings, to say nothing of arming their leader to the teeth (didn't we do that too?), but those are topics better left for another day.
A final, and more imortant topic, that may dismay some fans of the president, concerns his testicles. He has 'em just like the rest of us. What is different is his interests --they are not the same as ours! Glenn Greenwald, one of the very best writers on the scene today, has written extensively on this topic (see Salon.com) and the Wikileaks treasure trove of cables validates Glenn's views conclusively. It has long been the case that leaders of the "opposing" two parties have always differed in their policy views almost strictly on domestic policy only, with converging views (especially privately, but sometimes even publicly) in foreign policy or related international affairs. Didn't Nixon expand Johnson's (or Kennedy's, or Eisenhower's, or Truman's --depending on how far back one wants to go) war in Southeast Asia? Didn't every single administration since Eisenhower support toppling the Cuban government? (possibly excepting Carter) Didn't Clinton push hard for NAFTA after campaigning against it? And, didn't Obama expand the Bush wars? I could go on, but it's all useless; we're fu .. I mean, we're sunk. Big time!

Roger Clery

August 02, 2011 12:56pm

As Sen. Everet McKinnley Dirkson one said a billion here and a billion there and soon you will be talking about real money. Cost of two stupid wars => 5 TRILLION!

Lindsay Haisley

August 02, 2011 9:32am

This is in a quote from Joe Stiglitz - should be verifiable as an error by three orders of magnitude by looking at the source. Amy? $5B is chump change when it comes to war profiteering.

jerbo49

August 02, 2011 5:59am

I would like to see the "Cheney Unplugged" Tour.

Joyce Owens

August 02, 2011 2:36am

I sit and read all this and just... well, I'm 73 years old, work hard to get these messages out....mostly on twitter as "palsimon"....then, I just sit here and cry....feeling so helpless watching the people of the world suffer so much. I am dying with cancer, not much longer to suffer. But the other people in the world....it just makes me cry.

Robert Francis

August 02, 2011 1:07am

... check with Ian Crane (Alternative View) who blew up the oil fields in Iraq 1991 ....

Angela DuBois

August 02, 2011 12:59am

Read again, Donnie. Contract = 7 Billion. War costs = 5 Trillion.

William Robinson

August 01, 2011 10:46pm

The best tools we could give our troops in Afghanistan and Iraq would be tickets home. Didn't we learn anything from VietNam? Didn't we learn anything from the truths coming out of Iraq about that being a false alarm perpetrated by the evil Bush, Cheney, Rumsfeld et al?
How stupid and arrogant for us to spend trillions of dollars in countries where we are not wanted or trusted, particularly when our own citizens are suffering and our infrastructure is falling apart.
I became so disgusted with the political situation in the USA that I now live in SE Asia. At least the communists here try a little bit to improve the condition of their people, and the citizens who were NOT communists before 1975 say that things are much better now than they were in the corrupt land of South Vietnam.
Bush, Obama, even Clinton (who at least balanced the budget and created a surplus) are all traitors to the moral fiber of our country and should be ridden out of town on a tar covered rail.

Andy Uhl

August 04, 2011 9:54pm

$7 billion is what the pentagon used in taxpayer funds to help get the war started. $5 trillion is what the taxpayer will have spent so far in this never funded quagmire in the almost 10 years. What is the cost in lives lost or maimed? Stop socializing the killing and debt.
Support the troops: Bring them home! Tax the corporations profiteering!

DoctorDemocracy

August 01, 2011 8:59pm

Did others misread this articular just because one person misread the article--confusion billions and trillions? Or did the article get fixed before 11:57pm (eastern) on 8/1?These numbers are definitely correct at this time:KBR's no bid contract = $7 BILLION (as Amy wrote)Cost of the Wars = $5 TRILLION (as Amy wrote)NO error in these numbers at this time.

Peter Teehan

August 01, 2011 6:12pm

amy is no pacificst herself.comments on her show suggest that she is all in favor of the libyan assault. whatever you may think of kadaffi,(the guy the west loves to hate) he is the ruler of a country composed of tribes. this is a civil war and should be left to the libyans. the european countries that buy libyan oil,france and italy especially,are run by right wing facists,sarkozy and burlesconi. this plan of supporting the rag tag rebels has been in place for many years. the arab spring was their opening . ah, that libyan oil is so sweet. i know. nato is protecting the libyan people from the libyan leader who is slaughtering his own people. so launching missiles on tripoli is not killing libyans. maybe obama should send his daughters on a vacation to tripoli if he thinks that us missiles are not killing innocent civilians.

Dave

August 01, 2011 4:57pm

Also KBRs contract was surely $7billion not $7trillion

Donald Gibbs

August 01, 2011 4:42pm

If the cost of the two wars is 5 Trillion and the contract to KBR was 7 Trillion; where is the other 2 Trillion?

Ann Roberts

August 01, 2011 3:41pm

we can continue to rant about all the above but what to do to effect change. I feel powerless - all the war criminals (Bush, Cheney et al) are still living nice lives, the rich are still rich(er), the wars are still raging, our children are still being maimed and killed, books are being written and here we are - writing comments.

marinemomof3

August 01, 2011 3:25pm

Amy*Please change BILLION TO TRILLION.Marinemomof3Thank you :)

Dave

August 01, 2011 4:58pm

Surely the KBR contract was $7 billion not 7 trillion.

James D. Poisson

August 01, 2011 3:23pm

To end a war, Ike said: "I will go to Korea!"

To end a war, Gene McCarthy said: "I will go to the Pentagon."

To make war on the American people, John Boehner said: "I will go to the Tea Party."

Angel J. Perea

August 01, 2011 2:20pm

Many informed Americans know about the Contracts to KBR came from the Office of the Secretary of Defense, run by VP Cheney's close friend, Donald Rumsfeld. These chicken hawks hypocrites that never had the courage to service their country, but willingly put young Americans in Harm’s way!
The Rebuke Message from Middle Class Americans:
Mr. Boehner, Isn't interesting to note that those unemployed Americans are not talking about a debt ceiling! Where are the jobs you campaigned on?
Mr. President, Middle America is asking! Where is the compromise? Where is the shared sacrifice? Did we miss something?
The right-wing tea extremists kidnapped our US economic health and succeed to hold it hostage. The damage (Recession continues) has been done!! The extortion Bill to play games with our US economy and their ransom request was rewarded! Middle Class Americans know that it was only about Political posturing in the House, how is that appropriate! And Senator McConnell is allowed to continue to play more political extortion games with his 43 sign-up-ed obstructionists! These same hypocritical republicans that never held our debt ceiling hostage before and never voted against any past Republican President to keep him from paying “congress” approved bills!
Remember you break (DEFAULT) it, you own it! See you extortionists in November, all of you will have your debt to repay, Big Time! Message from Middle Class Citizens

Zelbequahi

August 01, 2011 1:48pm

I have been saying this everytime I see the national debate on the debt crisis. Those ready to criticize and pick at the Obama administration are the very ones that place value and equate loss of human life under the guise of "freedom" while returning soldiers are silenced, ignored and not even given the proper tools for battle. The pro-war crowd includes the religious right, the Tea Party mobs and the so-called patriotic capitalists crowds that scream socialism everytime you question why money is being spent on defense, CEOs get bonuses and American corporations overseas are not taxed as foreign businesses, as they should. I guarantee that if American Indian tribes open shops overseas, the US government would tax the crap out of them as they already do here on lands that tribes have occupied for milleniums.

My fellow citizens like to boasts about being the most free and liberty filled nation on the planet, yet here we are, 11 years past 2000, and I see only passive and sheepish taxpayers working to feed an obese and violent government?

Carolyn Martine...

August 01, 2011 1:22pm

Thank you Amy! You are the best. My mom who only had a 5th grade education because a Latina in her days 'didn't need an education to stay home and have babies.' She said that the rich ammunition companies made the money on war and we lost. Thank you for keeping the message alive. Aloha

Jeffrey Knopf

August 01, 2011 1:19pm

Regardless of what one thinks of the wars, it is unpatriotic to pay the trillions for the wars by cutting Social Security , Medicare/Medicade, and education etc.We should be raising a tax to support our sons/daughters, brothers/sisters fathers/mothers and friends and neighbors in the military rather then cutting our support to children, elderly, sick, and poor to pay for the defense of the nation.

Ira Jinkins

August 01, 2011 1:15pm

War has caused us thousands of lives, broken homes, families and troops. We have lost Trillions of Dollars which could have been used to Rebuild and Reinvest in America. War Profiteers are making Billions of Dollars in Tax Free Money which we can not afford. Some of this money is being used to buy our elected officials in State's Houses and our halls of Congress. Some is financing False and Misleading Campaign Ads by Shadow Campaign Groups to include America's Crossroad GPS, Americans for Prosperity which is a front group for, of and by the Wealthy and Corporate Elites. What Did America Get? Unfunded Health Care Cost for Wounded Warriors, Survivors Benefits, Compensations and Pensions for Our Wounded Warriors and Our Families.

wildthang

August 01, 2011 1:11pm

must be because 4.9 billion is just a yearly bonus for a top hedge fund manager.

Derek Stephen M...

August 01, 2011 1:01pm

God bless Amy Goodman for battling the war against truth, by talking about the elephant in the room, that no-one in the U.S. seems to want to talk about. why doesn't Obama find his balls & go after the Pentagon?

Bradford Nelson Bray

August 01, 2011 12:41pm

Hard to get the truth across when little facts, like "billion" or "trillion," get confused or mistaken. Sloppy. Nonetheless, Amy is one of the VERY few voices in the U.S. Empire willing to speak truth to power. Keep it up.

David VonSeggern

August 01, 2011 12:40pm

I see others have caught the billion/trillion error. Yes, cumulative federal expenditures get quit large, and Americans have trouble grasping $5 trillion. It is roughly 1/3 of the national debt that the politicians are wrangling over now. It seems that the waste at the Pentagon goes under the radar. I say no more -- DoD must be part of any real budget-cutting effort.

Stephen Greene

August 01, 2011 12:35pm

General Butler, I believe, was the United States Marine who almost single handedly thwarted an attempted overthrow of Roosevelt's presidency by a group of bankers and industrialists. He won the Congressional Medal of Honor on two seperate actions and was also the recipient of the Marine Corp Brevit Medal. A combat tested Marine officer who survived the horror of war and despised those who would profit from the deaths of his young Marines.

Jeff Tamblyn

August 01, 2011 12:21pm

Keep telling the truth, Amy. Sooner or later, Americans will listen and something will be done.

Stephen Greene

August 01, 2011 12:49pm

Unfortunately Jeff, Amy has been telling the truth about the forces behind these wars for some ten years now. Sooner or later means never. Americans are organizing now, relearning lessons from the labor movement of 50 years ago and the peace movements of the '60s and '70s. Hopefully we're not too late to prevent a complete corporate take over, despite the corporate dollar power showering down on the outreached hands of our congress, the courts and even the executive branch.

Sidney D Beerger

August 01, 2011 12:20pm

WERE THEY BUT IRAQ AND AFGHANISTAN, ADD PAKISTAN, LIBYA, SOMALIA, YEMEN AND 100 WOLDWIDE OUTSPREAD BASES, DRONE CENTERS, ETC.

Lanny Cotler

August 01, 2011 12:15pm

Yep, $5 trillion. Strange mistake for these pages.

Hmmmm

Gregory Atwood

August 01, 2011 12:08pm

Umm, wouldn't the cost of the Iraq and Afghanistan wars be more like $5 TRILLION rather than $5 billion?

psgrenier

August 01, 2011 12:04pm

"Ac­cord­ing to Nobel Prize-win­ning econ­o­mist Joe Stiglitz, the cost of the wars in Iraq and Afghanistan alone will ex­ceed $5 bil­lion."

You mean $5 trillion.