More Dirt on BlackWater

Since the revelation earlier this week of allegations by two former employees of security firm Blackwater that its owner was complicit in murder in order to cover up the deliberate killing of Iraqi civilians, explosive charges have continued to emerge.

Erik Prince - Blackwater CEO

Perhaps the most shocking of those charges — quoted by MSNBC’s Keith Olbermann on Thursday from the employees’ sworn declarations — is that Blackwater was guilty of using child prostitutes at its compound in Baghdad’s fortified Green Zone and that owner Erik Prince knew of this activity and did nothing to stop it.

The declarations describe Blackwater as “having young girls provide oral sex to Enterprise members in the ‘Blackwater Man Camp’ in exchange for one American dollar.” They add even though Prince frequently visited this camp, he “failed to stop the ongoing use of prostitutes, including child prostitutes, by his men.”

One of the statements also charges that “Prince’s North Carolina operations had an ongoing wife-swapping and sex ring, which was participated in by many of Mr. Prince’s top executives.”

According to the two former employees, Blackwater supervisors in Iraq sometimes sent men back to the United States for wanting to “kill ragheads,” excessive drinking, steroid use, or failure to follow weapon safety procedures, but “Mr. Prince and his executives would send them back” with a reprimand to the supervisor for costing the firm money. Blackwater even fired “those mental health professionals who were not willing to endorse deployments of unfit men.”

The former employees additionally state that Prince was engaged in illegal arms dealing, money laundering, and tax evasion, that he created “a web of companies in order to obscure wrong-doing, fraud, and other crimes,” and that Blackwater’s chief financial officer had “resigned … stating he was not willing to go to jail for Erik Prince.”

Prince has repeatedly insisted his company has done nothing wrong and Blackwater — now renamed Xe — continues to fulfill its contracts with the United States government.

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This video is from MSNBC’s Countdown, broadcast Aug. 6, 2009.