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Del Rio Today
By the People, for the People
Kristi Noem Awards $1 Billion Border Wall Contract to Firm Accused of Smuggling
The South Dakota governor approved major deals for SLSCO Ltd. despite past allegations of worker exploitation and firearms trafficking.
Mar. 13, 2026 at 9:41pm
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The Department of Homeland Security awarded Texas-based construction firm SLSCO Ltd. two contracts totaling roughly $1 billion to build sections of the border wall in Laredo and Del Rio, Texas. This comes despite past legal filings that accused SLSCO of 'human and weapons smuggling' across the U.S.-Mexico border, including allegations that the company employed undocumented migrants and armed some as security guards.
Why it matters
The border wall project has been a politically divisive issue, and the awarding of such a large contract to a firm with a history of alleged worker exploitation and firearms trafficking raises concerns about oversight and accountability in the contracting process.
The details
According to reporting, two former SLSCO security contractors, a former FBI special agent, and a former San Diego sheriff's deputy filed a lawsuit accusing the company of smuggling migrants across the border and arming some of them as guards. The lawsuit claimed the contractors discovered migrants allegedly working at SLSCO construction sites without legal authorization and saw Mexican nationals carrying firearms while working as security guards. The contractors said they raised concerns with supervisors, but the company failed to act. The lawsuit was eventually dismissed before reaching court.
- In 2019, the alleged incidents of worker smuggling and firearms trafficking occurred at SLSCO construction sites in Southern California.
- In July 2019, the contractors reported the alleged smuggling and shootout to federal authorities.
- Shortly after the report, the two contractors said they were fired, which they alleged was retaliation.
The players
Kristi Noem
The governor of South Dakota who approved the major border wall contracts for SLSCO Ltd.
SLSCO Ltd.
A Texas-based construction firm that was awarded two contracts totaling roughly $1 billion to build sections of the border wall in Laredo and Del Rio, Texas.
Department of Homeland Security
The federal agency that awarded the border wall contracts to SLSCO Ltd.
What’s next
The Department of Homeland Security may face increased scrutiny over its vetting process for border wall contractors in the wake of these allegations against SLSCO Ltd.
The takeaway
This case highlights the need for greater transparency and accountability in the awarding of government contracts, especially for high-profile and politically charged infrastructure projects like the border wall.
