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Former executives of Custer Battles _ an American firm accused of stealing millions from Iraq reconstruction projects and banned from further government contracts _ have continued doing contracting work and have formed new companies to bid on such projects, The Associated Press has learned.

There is no centralized procedure for monitoring scores of contracting firms rebuilding Iraq with U.S. funds, according to the military. The controls that do exist have been criticized for failing to keep track of millions of dollars.

Today's private security companies are corporate endeavors that perform logistics support, training, security, intelligence work, risk analysis, and much more. They operate in an open market, work for many employers at once, and boast of their professionalism.

After years of failing to control cost overruns, the most powerful officials at the Pentagon are becoming increasingly alarmed that the machinery for building weapons is breaking down under its own weight.

Rick Blanchard says he was one of eight former U.S. Marines among 14 security specialists in a 19-man convoy employed by Zapata Engineering of Charlotte, N.C. on May 28 in Northern Iraq where Marines intercepted them and escorted them to Camp Fallujah.

One respects him for his work and taking responsibility for children. Another sees him like a fraternity brother. All recognized him as suffering human foibles, but acknowledged his attempts to overcome them. All but one were named by Blanchard as people who know him here. Their recollections paint a picture of a multi-faceted man with a story worth hearing.

All four worked for ArmorGroup, a security firm with 1,000 employees in Iraq protecting official buildings and companies. They were part of a civilian convoy working on the security of a reconstruction project close to Mosul when their convoy came under fire from gunmen.

"We are not looking for cowboys or reactionary musclemen," explains CEO Kevin James, a former Navy Seal and martial arts expert. "The best men and women for these jobs are those who have the physical skills, think tactically, and can handle the pressure. We are equipping professionals to succeed in hostile environments."

The website, www.boycottbush.net, has been set up to allow individuals to influence the global politics of climate change. Set up by UK-based campaign organisation ECRA, the new website seeks to show that by targeting the companies that bankrolled Bush to victory in November, individuals can force his hand at climate talks in Bonn this July.

The Pentagon awarded three contracts this week, potentially worth up to $300 million over five years, to companies it hopes will inject more creativity into its psychological operations efforts to improve foreign public opinion about the United States, particularly the military.

Three private contractors hired by the U.S. military to help make commercials, write news stories and produce TV shows aimed at foreign countries will tell the truth -- not lies, said the Army officer overseeing the contracts.

Abt Associates was found to have been little, if any, help to Iraqi health care. Its funding was cut, but it has won new pacts.

A defense contractor with ties to Rep. Randy "Duke" Cunningham took a $700,000 loss on the purchase of the congressman's Del Mar house while the congressman, a member of the influential defense appropriations subcommittee, was supporting the contractor's efforts to get tens of millions of dollars in contracts from the Pentagon.

The Pentagon suspects vast overcharging for workers' compensation in war zones. A financial giant has fought a proposal to cut rates.

The Marine Corps has banned at least 16 men from U.S. bases in western Iraq because they were allegedly part of a security convoy accused of speeding through Fallujah and indiscriminately firing unauthorized weapons.

Iraq's interior ministry said it wanted to impose legal boundaries on the private security business after American contractors twice opened fire on US marines. The move may be supported by the US military, whose patience with the contractors has been tested.

The jailing of private security guards reflects the long simmering tensions between the military and private business in Iraq. Even though the government has hired private companies to perform many functions in Iraq -- including security -- it does not formally oversee their activities, allowing misunderstandings and disputes to fester.

A North Carolina company has repatriated its private security contractors, including eight former U.S. Marines, after they were accused and detained in Iraq for purportedly shooting at American troops in Fallujah.

A group of American security guards in Iraq have alleged they were beaten, stripped and threatened with a snarling dog by US marines when they were detained after an alleged shooting incident outside Falluja last month.

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