DHS officials ridicule Noem for handing key contract to CEO who bankrupted airline

Sources within the Department of Homeland Security torched outgoing Secretary Kristi Noem's judgment after the revelation that she handed a key aviation contract to a CEO who previously led an airline company into bankruptcy, according to a new report from The Daily Beast.

Per the outlet's Friday report, during her time at the head of DHS, Noem awarded a $140 million federal contract to a two-year-old company called Daedalus Aviation. As part of the deal, the company would provide the agency with six Boeing 737 MAX aircraft to be used for deportation flights.

Eyebrows were raised, however, by Daedalus CEO Joshua Bustos and his prior leadership history. According to The Daily Beast, he previously served as the CEO for Safi Airways, the largest private airline in Afghanistan, starting in October 2015. Just two years later, however, the Afghan Civil Aviation Authority shuttered the company after it "failed to clear more than $16.7 million in outstanding taxes and debts."

"The carrier had been warned repeatedly before authorities moved to confiscate its assets in early September 2016," The Daily Beast's report explained. "It ceased operations days later."

The outlet continued: "In June 2019, Bustos’ appointment as chief commercial officer of SriLankan Airlines was questioned by some of the country’s parliamentarians, who cited his work at Safi Airways to argue that he had a questionable record in the industry. Six years later, Noem entrusted Bustos with one of the most significant aviation contracts in DHS history."

Speaking with The Daily Beast for the report, an anonymous DHS official called into question the judgment that led to Daedalus getting the massive contract.

“Given Bustos’ background, it should be asked of the U.S. government, why exactly was Daedalus Aviation chosen to head this vitally important project for the federal government?" the official said. "And who made the decision to choose them to lead this project?”

In the wake of President Donald Trump announcing her ouster from DHS, reports have surfaced about the contract mess Noem will be leaving behind and the questionable system she implemented. While heading up the agency, Noem insisted that all contracts over $100,000 had to be personally vetted and approved by her, meaning she was likely the one to make the call about Daedalus Aviation. According to an earlier Axios report, she will exit DHS with "dozens of pending contracts on her desk."

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