Eric Prince has always been annoyed by the bad publicity that his firm has gained. He claims that performance does not count in Washington just politics. While Blackwater was for the most part successful in protecting its clients it did so in a way that could hardly be called a good performance. It was involved in killing innocent people and managed to make it and to some degree the U.S. an object of hatred in the areas it works. At the same time it often charged outrageous prices. As a result it is subject to lawsuits, criminal investigations and a tide of negative publicity. Some performance. In fact only Prince's Pentagon connections probably has saved the firm this long. So Prince is right that politics rather than performance counts. But finally the connections are being disconnected so Prince might as well sell before it gets worse. This is from the NYTimes.
By JAMES RISEN
WASHINGTON — Burdened by lawsuits, criminal investigations and negative publicity stemming from its private security work in Iraq and Afghanistan, Blackwater Worldwide is being put up for sale, the company has announced.
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Times Topic: Blackwater Worldwide
Blackwater, which changed its name to Xe Services and brought in new management last year in order to remake its image, is pursuing a sale in part because that overhaul has failed to change perceptions of the company, most critically inside government, which is its main customer.
Erik Prince, the former member of the Navy Seals and heir to an automotive fortune who founded Blackwater, said in a statement given to The Associated Press late Monday that making the decision to sell the company was difficult, but that he no longer wanted to deal with the intense criticism the business has faced.
“Performance doesn’t matter in Washington, just politics,” Mr. Prince said.
A separate statement from the company’s headquarters, in Moyock, N.C., said, “Xe’s new management team has made significant changes and improvements to the company over the last 15 months, which have enabled the company to better serve the U.S. government and other customers, and will deliver additional value to a purchaser.”
In March, Xe Services sold its aviation division, Presidential Airways, to the AAR Corporation, which is based in Illinois. Among the company’s largest remaining assets is the 7,000-acre compound it operates at its headquarters, which includes shooting ranges, driving courses and other facilities for military and law enforcement training.
The effort to sell the company comes in the wake of intense legal scrutiny of its past management.
In April, five former Blackwater executives, including its past president, Gary Jackson, who had served as Mr. Prince’s most trusted lieutenant, were indicted on federal weapons charges. Separately, the Justice Department has opened an inquiry into whether Blackwater officials sought to bribe Iraqi government officials in order to continue to operate in Iraq after a 2007 shooting involving Blackwater guards in which 17 Iraqi civilians were killed. Manslaughter charges brought against five of the guards were dismissed last year, but the Justice Department is appealing the decision.
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