Report: Pentagon Pays $1 Billion to Formerly Indicted Arms Dealer
The Pentagon Has Paid a Once-Indicted Arms Dealer $1 Billion in Shocking Move: Report
The Department of Defense (DOD) has paid approximately $1 billion to an arms dealer who was previously indicted for allegedly bribing foreign officials to supply equipment to the Ukrainians, according to a report by The New York Times.
The Pentagon has entered into contracts with Florida-based Global Ordnance, worth $1 billion, to provide ammunition, including rockets and shells, to Ukrainian forces in their fight against the invading Russian forces, as reported by The New York Times.
Marc Morales, the head of Global Ordnance, was the subject of a 2009 indictment by the Department of Justice (DOJ), which accused him of participating in a conspiracy and engaging in money laundering activities. The DOJ also alleged that Morales was caught on tape discussing illicit payments to foreign officials.
However, due to mishandling of the investigation and the relationship with a key informant by FBI agents, the charges against Morales were dismissed, according to The New York Times.
Morales’ involvement in the Ukrainian arms trade highlights how the urgency to defend the country’s territory has created opportunities for lesser-known contractors to secure significant contracts. These contracts may have otherwise dried up after the reduction of the U.S. military presence in the Middle East.
In addition to the Pentagon contracts, Morales has reportedly established a separate operation worth $200 million, directly selling supplies to the Ukrainians.
“Contrary to what we may see in the movies, long-term success depends upon knowing, fully respecting, and following the rules of all countries involved,” said Bryan Van Brunt, the general counsel for Global Ordnance, in an interview with The New York Times. Van Brunt emphasized that the company adheres to all applicable statutes.
The U.S. has provided over $40 billion in military aid to Ukraine, with much of the equipment being advanced and expensive weaponry. However, contractors like Morales, with extensive connections in international arms markets, play a crucial role in supplying smaller, more basic types of ammunition from various sources around the world.
Morales has demonstrated his expertise in fulfilling military contracts in Afghanistan and Syria, as reported by The New York Times.
When Russia escalated its assault on Ukraine, Ukrainian officials removed many transparency policies related to arms procurement. These policies were initially implemented to combat the widespread corruption within the Ukrainian political system, according to the European Union.
Corruption within the Ukrainian military has been a persistent issue since the escalation of the war, as previously reported by The New York Times.
Global Ordnance is currently under investigation by Ukrainian anti-corruption agencies regarding an agreement that government officials claim was mishandled, according to The New York Times.
Neither Global Ordnance nor the Pentagon have responded to requests for comment at this time.
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