Costly kickback scandal unfolds at a U.S. Special Forces base

Costly kickback scandal unfolds at a U.S. Special Forces base

By Leslie Wayne The New York Times THURSDAY, OCTOBER 27, 2005

NEW YORK U.S. investigators are looking into a bribery and kickback scandal at the U.S. Special Operations Command involving millions of dollars in equipment used in battle by special operations forces, among them navy Seals and army Green Berets and Rangers.

So far, one civilian procurement contractor at the command, located at MacDill Air Force Base in Tampa, Florida, has pleaded guilty in U.S. court and at least one other indictment is expected. The contractor, William Burke, admitted accepting payments from an individual who represented military contractors seeking to equip the commandos. That person has not been officially identified.

Burke, a special forces procurement contractor since 1999, faces up to 15 years in prison and a fine of $250,000. As part of his plea, Burke will cooperate with U.S. investigators. His lawyer, Daniel Hernandez, declined to comment.

In the meantime, the Special Operations Command is examining all contracts handled by Burke to determine whether soldiers received inferior equipment as a result of the bribes. The contracts cover lightweight communications systems, ammunition, small arms and other equipment carried by U.S. Army, Navy and Air Force Special Forces in Iraq and Afghanistan.

As a result of the war on terror, financing to the command for these elite forces has risen sharply since 2001 and is now around $6 billion a year.

"We are reviewing all contracts that may have been involved," said Kenneth McGraw, a spokesman for the command, which is the headquarters of the special forces. "We do not have the information on the number of contracts that may have been affected. We are conducting a review to make that determination now."

Still, because the case comes after a multibillion-dollar procurement scandal that shook the Pentagon last year and because it involves equipment used by elite troops on dangerous assignments, it is attracting attention in Washington and within the Pentagon.

"It's disconcerting," said Keith Ashdown, a military analyst with Taxpayers for Common Sense, a Washington research group. "These are supposed to be the crème de la crème of forces. If their procurement officers were taking kickbacks, it could be happening anywhere."

Last year, in a high-profile procurement scandal, Darleen Druyun, once the a top weapons buyer for the air force, pleaded guilty to conspiracy and was jailed for having favored Boeing in billion-dollar Pentagon contracts in return for employment there for herself and members of her family.

"If Darleen Druyun is the poster child for corruption at the Pentagon, there are a lot of little Darleen Druyuns running around," Ashdown said. "A lot of this just flies under the radar screen."

Court papers describe a kickback plan in which Burke received payments from the unnamed individual in return for preferential treatment in the awarding of contracts to companies represented by the person.

Burke received $12,000 and "would receive substantial compensation from this other individual 'down the road"' the papers said.

McGraw, the command spokesman, said Burke formed his company in October 2004, and in December, the command received information that led to an investigation by the office of the special operations inspector general.

In February, the office of the special forces inspector general, which cannot investigate criminal cases, referred the case to the Pentagon Defense Criminal Investigative Service and the FBI.

Burke is scheduled to be sentenced in 60 to 90 days.