Earlier today, the New York Times reported on AEY, a Miami-based military contractor run by 22-year old Efraim Diveroli and his personal masseur/VP David Packouz who apparently won a $300 million contract to be "the main supplier of munitions to Afghanistan's army and police forces." What did Afghanistan get from AEY? Degraded, forty-year old munitions in "decomposing packaging" that came from "the aging stockpiles of the old Communist bloc." And here's a key revelation you'll want to keep with you: the Army only just this week "suspended the company from any future federal contracting" because they were told the munitions were from Hungary - country of quality munitions.
Anyway, because House Oversight Committee Chair Henry Waxman did not wake up today bereft of his eyes, cognitive faculties, or subscription to the New York Times, he was on this story with a quickness, and as sure as the swallows coming home to San Capistrano, hearings on the matter have been scheduled.
At the hearing, please be prepared to discuss your company's financial history, past performance, and compliance with U.S. law and government contracting regulations. The Committee will be sending you under separate cover a request for documents relating to this issue. In addition, I request that you make yourself available for a transcribed interview with Committee staff on or before April 11, 2008.
Waxman has also sent letters to Secretary of State Condoleezza Rice and Secretary of Defense Robert Gates. Each are asked to "be prepared to discuss the scope of AEY's contracts with the Department, efforts by the Department to determine whether AEY is a responsible contractor capable of adequate performance under federal contracts, the Department's efforts to investigate allegations that AEY may have violated U.S. law and government contracting regulations, and any actions the Department has taken against the company as a result of such investigation."