Corrupt Pentagon contract for Afghanistan arms deal

This video from the USA is called Iraq for Sale: The War Profiteers – Trailer.

From British daily The Guardian:

22-year old awarded $300m Pentagon contract, according to report

* Suzanne Goldenberg in Washington

* Thursday March 27 2008

The Pentagon entrusted a 22-year old previously arrested for domestic violence and having a forged driving licence to be the main supplier of ammunition to Afghan forces at the height of the battle against a resurgent Taliban, it was reported today.

AEY, essentially a one-man operation based in an unmarked office in Miami Beach, was awarded a contract worth $300m to supply the Afghan army and police in January last year.

But as the New York Times reported in a lengthy investigation, AEY’s president, Efraim Diveroli, 22, supplied stock that was 40 years old and rotting packing material.

“Much of the ammunition comes from the aging stockpiles of the old Communist bloc, including stockpiles that the state department and Nato have determined to be unreliable and obsolete, and have spent millions of dollars to have destroyed,” the paper said.

Update June 2008: here.

10 thoughts on “Corrupt Pentagon contract for Afghanistan arms deal

  1. U.S. army suspends company for selling Chinese ammunition for Afghan use


    WASHINGTON – The U.S. army has suspended a company from government contract work for providing Chinese-made ammunition to the Afghan army, in violation of its contract and U.S. law.

    AEY Inc., a firm with just eight employees, is under criminal investigation for claiming the munitions were made in Hungary, said documents obtained Thursday.

    Also, there have been complaints from the U.S. military in Afghanistan that the ammunition arrived poorly packaged, including instances in which they found loose cartridges in brown paper bags.

    Pentagon spokesman Bryan Whitman said there have been no reports the ammunition was unsafe or failed to work properly. But he said some of it may not have been used because of concerns it was not packaged well.

    In a letter Tuesday, the army told company owner Efraim Diveroli the investigation could lead to AEY being barred from any U.S. government work.

    Diveroli’s lawyer, Hy Shapiro, said Thursday he had not seen the army’s letter yet and declined further comment until he had. No one answered the door at the Miami Beach apartment listed as Diveroli’s in Florida state records.

    An Army Legal Services memo said AEY began contracting for the U.S. Defence and State departments in 2004 and to date has been awarded more than 150 contracts, worth in excess of $200 million.

    The key contract was awarded in 2007 and was for various types of ammunition for the Afghan National Army and the Afghan National Police. It included munitions for machine-guns, assault rifles, shotguns and pistols.

    After questions arose about the origin of the munitions, U.S. army investigators in January reviewed shipments at an Afghan army weapons depot. Stamps on munitions in 14 containers showed the ammunition was manufactured in factories in China, the memo said.

    Companies doing business with the U.S. government cannot buy any munitions directly or indirectly from a Chinese military company, or any entity that is part of China’s defence industrial base.

    In addition to providing the munitions, the small, fledgling company also at times sold a variety of other products to the Pentagon and State Department, including weapons, grenades, grenade-launchers, rockets and clothing.

    While the inspections at the Afghan depot were in January, the army did not invoke the suspension until this week, just as the issue was becoming public.

    The ammunition problems were first reported Thursday by the New York Times newspaper.


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