CIA chief says troubled security company wins $100 million security contract in Afghanistan

By Kimberly Dozier, AP
Sunday, June 27, 2010

Troubled contractor gets Afghanistan security deal

WASHINGTON — CIA Director Leon Panetta says the agency has hired Xe (zee) Services — the company once known as Blackwater — for a $100 million contract to provide security in Afghanistan.

He says Xe underbid others by $26 million and that a CIA review concludes that the contractor has cleaned up its act.

Panetta says Moyock, N.C.-based Xe does not engage in actual CIA operations, but instead helps secure agency bases in war zones. Seven CIA employees, including security contractors, were killed in a suicide bombing in Khost, Afghanistan, in December.

Blackwater guards allegedly opened fire on unarmed civilians in Baghdad in 2007, killing 17 people. A federal grand jury has indicted five Blackwater officials on conspiracy weapons and obstruction of justice charges.

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