Blackwater's owner and founder Erik Prince, was an intern in George H. W. Bush's White House. Prince is a major financial supporter of Republican Party causes and candidates. Cofer Black, the company's current vice chairman, was director of the CIA's Counterterrorist Center (CTC) at the time of the September 11 attacks in 2001. After leaving public service, Black became chairman of the privately owned intelligence gathering company Total Intelligence Solutions, Inc., as well as vice chairman for Blackwater.
During his testimony before Congress, when the term
"mercenaries" was used to describe Blackwater employees, Prince objected, characterizing them as "loyal Americans".
A Committee on Oversight and Government Reform staff report, based largely on internal Blackwater e-mail messages and State Department documents, describes Blackwater as "being staffed with reckless, shoot-first guards who were not always sober and did not always stop to see who or what was hit by their bullets."
A staff report compiled by the House Committee on Oversight and Government Reform on behalf of Representative Waxman questioned the cost-effectiveness of using Blackwater forces instead of U.S. troops. Blackwater charges the government $1,222 per day per guard, "equivalent to $445,000 per year, or six times more than the cost of an equivalent U.S. soldier," the report alleged.
There are a variety of ongoing controversies involving Blackwater Worldwide. It has alternatively been referred to as a security contractor or a mercenary organization by numerous reports by the U.S. and international media. Critics consider Blackwater's self-description as a private military company to be a euphemism for mercenary activities. Jeremy Scahill points out that Chilean nationals, mostly former soldiers, whose country of origin does not participate in hostilities in Iraq, work for Blackwater in that country, thus those Chileans meet the definition of "mercenary." At least 60 Chilean Blackwater employees were trained during dictator Augusto Pinochet's regime. Author Chris Hedges wrote about the establishment of mercenary armies, referring to Blackwater as an example of such a force, asserting its existence as a threat to democracy and a step towards the creation of a modern day Praetorian Guard in a June 3, 2007 article in the Philadelphia Inquirer. Critics have suggested this may be going too far in putting political decisions in the hands of privately owned corporations.
In December 2006, an Iraqi politician, Ayham al-Samarie, escaped from a prison in Iraq, where he was awaiting trial for 12 criminal corruption cases. Blackwater, which he had hired for protection before his arrest, allegedly helped him escape. On September 22, 2007, U.S. federal prosecutors announced an investigation into allegations that Blackwater employees may have smuggled weapons into Iraq, and that these weapons may have been later transferred to the Kurdistan Workers Party (PKK), a Kurdish nationalist group designated a terrorist organization by the United States, NATO and the EU. The U.S. government was investigating Blackwater for these alleged crimes. On October 4, 2007, the FBI took over the investigation.
In January 2008, Marshall Adame, a Democrat running for Congress in North Carolina's 3rd District, took part in a live question-and-answer forum where he was asked a question about Blackwater. Adame, who had served as a State Department official in Iraq recounted, "I saw them shoot people, I saw them crash into cars while I was their passenger. There was absolutely no reason, no provocation whatsoever." He then stated, "There is no place in the American force structure, or in American culture for mercenaries, they are guns for hire; No more, no less."
This led Blackwater executive vice president Bill Mathews to send an internal corporate email to staff:
There is a man named Marshall Adame who is running for congress in our district. He just put a quote online which says he wants this company and all of us to cease to exist. Do you like your jobs? Are you sick and tired of the slanderous bullshit going on in DC? If so, would you all mind joining me in reminding Mr. Adame that he is running for office in our backyard. Tell all your friends and family too. We welcome their assistance in making this point very clear to Mr. Adame. Anyone who wants to send a letter may do so at the following address....His email is....He was too cowardly to put a phone number on the web. I ask that you keep your comments to Mr. Adame professional (well, mostly professional). We help him if our comments get threatening or too crass. Let’s run this goof out of Dodge...!
As a result of the letter writing campaign Adame stated, "I feel very strongly about how extensively organized Blackwater has become, and I will do everything I can as a congressman to look into that, to find out whether or not the things they're doing are even legal. Ultimately however, Adame was defeated in the 2008 Democratic primary by Craig Weber.
Overall, Blackwater has received over $1 billion USD in government contracts, of which two-thirds are no-bid contracts.
