Fedblog FedblogFedblog
Government Executive Editor in Chief Tom Shoop, along with other editors and staff correspondents, look at the federal bureaucracy from the outside in.

Afghanistan Contractor Still on Hot Seat


The plot has thickened in the ongoing battle between USA Today and Leonie Industries over the Pentagon’s handling of tax obligations of a major propaganda contractor in the Afghanistan war zone.

A story by reporter Tom Vanden Brook published Monday said Defense Department criminal investigators were looking into the company’s late-paid taxes and treatment of Afghan workers. That’s according to an exchange of letters between the Defense inspector general’s office and Rep. John Tierney, D-Mass.

The company has been under informal investigation since March, and although the probe has since been stepped up, the newspaper found the delinquent taxes approaching $4 million were settled that same month. Leonie was also reprimanded by the Pentagon for conducting a “smear campaign” on the Web against USA Today’s reporters.

In a statement to Government Executive, Leonie Director of Marketing and Communications Gar Smith said, “The USA Today article simply reports on an ongoing investigation, there are no new developments that we are aware of. Leonie has been and will continue to work with government officials to address any questions regarding the company’s operations.”

Smith added that “at no time has Leonie Industries, an LLC, been delinquent in its federal and state corporate tax obligations. The outstanding tax obligations related solely to the owners’ personal tax obligations and have no bearing on the company.”

Charlie Clark joined Government Executive in the fall of 2009. He has been on staff at The Washington Post, Congressional Quarterly, National Journal, Time-Life Books, Tax Analysts, the Association of Governing Boards of Universities and Colleges, and the National Center on Education and the Economy. He has written or edited online news, daily news stories, long features, wire copy, magazines, books and organizational media strategies.

Close [ x ] More from GovExec

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.


When you download a report, your information may be shared with the underwriters of that document.