WASHINGTON, Sept. 4 (UPI) -- Blackwater Worldwide established a large network of subsidiaries vying for military contracts after receiving a black eye in Iraq, a U.S. Senate committee says.
The Senate Armed Services Committee identified 31 companies linked to Blackwater, The New York Times reported. Blackwater changed its name to Xe Services after 17 Iraqi civilians were killed by its security guards in Baghdad in 2007.
The CIA awarded contracts to at least three Blackwater affiliates, former officials said.
Sen. Carl Levin, D-Mich., who leads the Senate committee, said its investigation is "looking into why Blackwater would need to create the dozens of other names." He said he has also asked the Justice Department to investigate whether the company deliberately misled the government when seeking contracts.
Paul Gimigliano, a CIA spokesman, said all the agency's contractors operate legally and are supervised by CIA personnel.
"As for Xe specifically, they help provide security in tough environments, an assignment at which their people have shown both skill and courage," he said.
