The company formerly known as Blackwater — now known as Xe (pronounced Zee) — allegedly billed the government for the X-rated services of a prostitute by marking the charge a “Morale Welfare Recreation” expense, according to this Washington Post report published today.
Here is the paragraph if interest, as penned by the Post’s Carol D. Leonnig:
The [plaintiffs]assert that Blackwater officials kept a Filipino prostitute on the company payroll for a State Department contract in Afghanistan, and billed the government for her time working for Blackwater male employees in Kabul. The alleged prostitute’s salary was categorized as part of the company’s “Morale Welfare Recreation” expenses, they said.”
Newly unsealed court records from a False Claims Act law suit filed by former employees also allege the company faked invoices to hide charges for other expenses not allowed under the contracts, such as alcohol or spa services, the Post reported.
The plaintiffs, husband and wife Brad and Melan Davis, said the private security contractor also charged the government twice for services, according to the Post. The Justice Department has not joined the lawsuit against the company, the Post said.