22-year-old defense contractor will testify before Congress
Henry Waxman wants 22-year-old Efraim Diveroli to testify about how his company, AEY Inc., landed over $300 million in government contracts between 2004 and 2007.
In a letter dated March 25, the Army informed Diveroli that he and AEY were debarred from future federal contracts because Army investigators concluded that AEY had passed off old Chinese ammunition as Hungarian-made. The US military is not allowed to buy from Chinese military companies.
Many news accounts have remarked on the age of the ammo--some of it was manufactured over 40 years ago. Note that the Army knew it was buying some pretty old rounds. AEY said that the ammo was made between 1965 and 1975. Most of it was actually produced between 1962 and 1974.
I reviewed some government contracting records and learned that AEY wasn't just a defense contractor. The firm had contracts with the IRS, the EPA, the DOE, the State Department, and other agencies.
AEY contracted to provide the following goods, in addition to weapons and ammunition for the Army, the Navy, and the Coast Guard:
-Small arms to a branch of the Department of Energy that protects nuclear installations
-Commercial printing for the EPA
-Computer phone cords to the IRS
-Sporting goods for the air force
-Cartridge and propellant devices for the US Embassy in Bogata, through a State Department contract
-Miscellaneous weapons for the US Special Operations Command
-Equipment for the Diplomatic Security/Anti-terrorism Assistance office of the State Department
AEY also had federal contracts to supply body armor, scopes, scaffolding and concrete forms, composite food packages, forklifts, and many other items.
Diveroli is also the president of the Florida company Ammoworks, according to Nick Juliano of Raw Story. Ammoworks, shares office space in Miami Beach with AEY, but does not appear to have received any federal contracts.
The Army investigated the sketchy ammunition that AEY sold them, but it's not clear whether any other agencies are checking the quality and source of the materials they got from Diveroli and AEY.
The National Nuclear Security Administrative Services Center should probably take a good look at the guns they bought from AEY to defend nuclear reactors.