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The War Profiteers - War Crimes,
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March 3rd,
2009 - Xe Tries to Leave History of Blackwater Behind |
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Xe Tries to Leave
History of Blackwater Behind By Mike Baker Associated Press March 3, 2009 Raleigh, N.C. - The
Blackwater name is gone. So is the focus on the security business that made
it famous. Now the founder who built the private company into one of the
world's most respected - and reviled - defense contractors is stepping aside
as its chief executive. Erik Prince's decision
Monday to relinquish his role as chief executive officer underscored how hard
the company now called Xe - pronounced like the letter "z" - is
working to bury the Blackwater brand and move its focus further away from the
security contracting that severely tarnished its reputation. Prince appointed a new
president and chief operating officer in a management shake-up that he said
was part of the company's "continued reorganization and
self-improvement." It comes less than a month after changing the
company's name to Xe in an effort at re-branding. "As many of you know,
because we focus on continually improving our business that Xe is in the
process of a comprehensive restructuring," Prince wrote in a note to
employees and clients. "It is with pride in our many accomplishments and
confidence in Xe's future that I announce my resignation as the company's
Chief Executive Officer." Although Prince will retain
his position as chairman of the company, the company said he is removing
himself from the day-to-day operations. Spokeswoman Anne Tyrrell said he plans
to spend more time with his family and seven children, adding he plans to
open a private-equity venture. Joseph Yorio, recently a
vice president at DHL and a former Army special forces officer, will serve as
president, replacing retiring executive Gary Jackson. Danielle Esposito, who
has worked within Xe for nearly 10 years, will be the new chief operating
officer and executive vice president, the company said. The CEO position remains
open. With an auto parts
inheritance, Prince founded Blackwater in 1997 with some of his former Navy
SEAL colleagues. They initially envisioned a world-class training facility to
support law enforcement and military. But after Sept. 11, the bombing of the
USS Cole and the start of the Iraq War, the company developed a large
presence in providing private security. The company's lucrative
contract to protect U.S. diplomats in Iraq comprises about one-third of Xe's
revenues, but the State Department announced it would not rehire the firm
after its current contract with the company expires in May. The company has
one other major security contract, details of which are classified, and
executives have said it will continue doing such work at the U.S.
government's request. Prince said in an interview
in January that losing the contract would be damaging. "It would hurt
us," Prince said at the time. "It would not be a mortal blow, but
it would hurt us." That said, executives have
long bemoaned what the work in Iraq has cost the company. A 2007 shooting in
Nisoor Square involving Blackwater guards drew outrage from politicians in
Baghdad and Washington and demands that the company be banned from operating
in Iraq. Late last year, prosecutors
charged five of the company's contractors - but not Blackwater itself - with
manslaughter and weapons violations. In January, Iraqi officials said they
would not give the company a license to operate. Xe has already been
expanding into other lines of business. It has built a fleet of 76 aircraft
that it has deployed to such hotspots as West Africa and Afghanistan. The firm continues to expand
training for law enforcement, with a renewed focus on international clients.
Last year, some 25,000 civilians, law enforcement and military personnel were
trained by the company. The company is headquartered
in Moyock, about 150 miles northeast of Raleigh. (This version corrects that
Price is relinquishing role as CEO, sted president and CEO. Moving on general
news and financial services.) Copyright © 2009 The
Associated Press. External link: http://www.google.com/hostednews/ap/article/ALeqM5i_xa83_RBzTPUrXquA0EjcqvQb1AD96M7FB02 |