by David Isenberg
June 27th, 2011
Najlaa International Catering Services won a $3 million five-year contract in February 2010 to prepare food for the U.S. Agency for International Development compound in Iraq. The deal was approved despite the fact that Bill Baisey, CEO of the Kuwaiti company, faces numerous complaints and court actions for non-payment of bills and alleged fraud in Kuwait and Iraq.
U.S. wars in Afghanistan and Iraq have been plagued by private military contractors that have performed poorly or failed miserably in fulfilling their contracts. Some overstated their capabilities or were badly managed and under-skilled, while others committed outright fraud.
Past investigations concentrated on major contractors such as Halliburton and Kellogg, Brown and Root (KBR), but recently the smaller companies – such as Najlaa – to which these giants subcontract have drawn fire.