Louis Berger News — Not Good

Remember Louis Berger Group?  The massive worldwide engineering company that designed AEP/FE’s failed PATH project?

Here’s the latest on one of their big war profiteering projects in Afghanistan from today’s New York Times.  Kickbacks, rakeoffs, bribes, extortion and complex networks of shell companies.  Seems to be standard operating procedure.

Here is what Berger did on their Afghanistan road project, according to the Times article:

The United States Agency for International Development, which has financed the project, turned it over to a joint venture of the Louis Berger Group, a New Jersey consulting and construction services firm, and Black & Veatch, a construction company in Kansas. In November, the Louis Berger Group paid one of the highest fines ever in a wartime contracting case to the federal government for overbilling.

Louis Berger hired an Indian subcontractor, which was a joint venture of two companies, BSC and C&C Construction, to handle the construction, and a South African private security contractor, ISS-Safenet, to provide security. Both sides in turn subcontracted to Afghans like Mr. Arafat, who did not even have a registered company, according to the Afghan Interior Ministry.

Each subcontract raised the costs as everyone took a share, and it was not long before the money allocated for the project had been drained.

“There would be a string of subcontracts, where the subcontractors would take a cut and subcontract it out again,” said a civilian who worked with the military on the project. “And we had a problem that with the final subcontractors, they didn’t have enough money to get the work done.”

Berger Group put itself at the top the US taxpayer-funded contractor food chain and raked off so much money, that there wasn’t enough left to do the project.  This is the vampire business model that Louis Berger Group brings to their infrastructure projects.

Makes you wonder how much they sucked off the bat guys and their other “services” on the PATH gravy train, funded by all electrical rate payers in PJM Interconnection.