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shooting against cars on the streets of Baghdad, with indications of deadly impact.13 According
to the persons in the vehicle from where the shots were made, it constituted part of a convoy of
vehicles of PMSCs.14 One commentator’s analysis indicated that private contractors, due to fear,
often shoot randomly on the streets of Baghdad and other Iraqi cities to ensure priority and to
keep a distance from other vehicles.15
36.
As with the traditional and legal definition of a “mercenary”, whose main motivation is
personal enrichment and material compensation, PMSCs seek maximum financial return for the
services they offer their clients. These motivations of PMSCs, which often seek to recruit
contractors at lower cost to increase profits, have led to situations where contracts from
Governments, such as the United States Department of Defense or the Department of State, are
subcontracted to subsidiary companies. For example, the Working Group has received
information that the original contract may generate approximately US$ 11,000 per security guard
per month for performing security services in countries of conflict. However, it is common for
the originally contracted PMSC to engage a second, third or fourth subcontracting private entity
to fulfil the original contract in full or in part. These processes often result in subcontractors
recruiting staff, and performing training, in countries with low labour costs and high
unemployment rates. The Working Group has received information of subcontracted individuals
who may receive salaries reduced to between US$ 1,000 and 2,000, with the surplus absorbed by
the originally contracted PMSC or divided among the layers of subcontracted PMSCs.
Furthermore, the Working Group is concerned that this profit-maximization of PMSCs can
create incentives for duplication of costly services, and which are largely beyond the control of
judicial accountability as well as of the military regular forces and their chains of command.
37.
The Working Group is also concerned at what point the motivation of PMSCs for profit
can lead to situations where national subsidiaries of large transnational PMSCs recruit personnel
to be sent to countries of conflict as security guards, but upon arrival are assigned and expected
to perform military functions for which they were not contracted or agreed to. The same
motivations could have effects on situations such as the PMSC which was in charge of protecting
a United States convoy that was passing through Falluja, Iraq, when its personnel were killed on
31 March 2004. The four guards were seized by Iraqi insurgents, dragged and burnt; scenes
which have been broadcast worldwide.16 The families of those guards filed a lawsuit against
the PMSC in January 2005 for not having provided sufficient personnel and adequate means
13
Broadcast on 13 June 2006; available at www.cnn.com, and the transcript at
http://transcripts.cnn.com/TRANSCRIPTS/0606/12/acd.02.html.
14
David Phinney, “From mercenaries to peacemakers?”, 29 November 2005,
www.corpwatch.org.
15
Sean Rayment, “Iraq: video exposes private security convoys shooting Iraqi drivers”, News
Telegraph, 27 November 2005, www.corpwatch.org.
16
This incident led to the seizure of Falluja by coalition forces in April 2004, which led to
approximately 600 casualites.
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