Armor Group - ArmorGroup North America, Inc. Scandal in Afghanistan

ArmorGroup North America, Inc. Scandal in Afghanistan

On June 11, 2009, the Wall Street Journal reported that internal State Department documents deemed ArmorGroup security lapses at the US embassy in Kabul so severe as to render the compound in "jeopardy." Guard posts were found empty and unstaffed for hours at a time, among other problems. The article quoted staffers on the Senate Homeland Security and Governmental Affairs Committee’s contracting oversight panel.

On September 1, 2009, the Project On Government Oversight sent a letter to Secretary of State Hillary Clinton which detailed allegations of misconduct by over 10% of the 450 employees of ArmorGroup guarding the embassy. There were claims also that the guards drank excessively and misbehaved whilst under the influence, did not speak English or Pashto (as they were largely Ghurkas) and had not been properly equipped to carry out their work. On September 4, 2009, the US State department announced that eight private security guards and some of their managers would be fired.

Several days later on September 10th, the Project on Government Oversight offered further details on the company's problems with upholding its obligations at the embassy as outlined in a $189 million contract. A federal complaint was filed over the company's "serious and chronic under-staffing," the "language and communications violations committed by personnel," the "numerous instances of making false statements, misrepresentations and withholding information from the State," and "jeopardizing the safety of the guard force via the purchase of cheaper, sub-par armored vehicles." The report also said that ArmorGroup demonstrated "a pattern of blatant and longstanding violations" leading to a "pervasive breakdown" in discipline, morale and security at the embassy.

On Sept. 14th, witnesses and panelists at a Commission on Wartime Contracting hearing urged the to cancel its contract with ArmorGroup for massive failures, deficiencies and "egregious violations."

On October 27, 2010, the Department of State's Office Inspector General released a report finding that AGNA had not been able to recruit, train, or manage the Kabul Embassy Security Force ("KESF") at the staffing level or the quality required by its contract with the Department of State. They also found that AGNA had employed Nepalese guards without verifiable experience, training, or background investigations in violation of its contract.

In July 7, 2011, the US Department of Justice announced that ArmorGroup paid the US government $7.5 million to resolve issues stemming from false claims the company made regarding charges for its services at the embassy. The payment also covered claims that its employees violated the Trafficking Victims Protection Act (TVPA), and that management was aware of this, as well as allegations that ArmorGroup misrepresented the prior work experience of 38 national guards it hired. Additional allegations stated that the company had failed to comply with Foreign Ownership, Control and Influence mitigation requirements on the contract, as well as those outlined in a separate contract to provide guard services at a US naval support facility in Bahrain.

As of June 15, 2012 AGNA has turned over security responsibilities for the embassy to Aegis Defense Services LLC, an American branch of Aegis Ltd.