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=> Halliburton suspends bill for army meals

Halliburton suspends bill for army meals

Posted by Jeff (Guest) jeff@attoz.com - Wednesday, February 18 2004, 3:15:38 (EST) from 69.14.56.182 - d14-69-182-56.try.wideopenwest.com Commercial - Windows XP - Netscape Website: Website title:

Halliburton suspends bill for army meals 'Overcharging' by Cheney's old firm becomes election issue David Teather in New York Wednesday February 18, 2004 The Guardian Halliburton, the company formerly run by the American vice-president, Dick Cheney, was yesterday threatening to become a political liability for President George Bush's administration as it became embroiled in a fresh row over work carried out in Iraq. The oil services and logistics company said it had suspended billing the US army for catering services in the Middle East, in the face of allegations of massive overcharging. Halliburton has more than $9bn (£4.8bn) worth of contracts in Iraq, more than any other company, but it has been plagued by claims of cronyism, corruption and financial mismanagement. The US justice department is investigating claims that the company bribed Nigerian officials, while the treasury department is conducting an inquiry into whether it broke trade embargoes with Iran. Last week a gym towel supplied by the company to US troops and embroidered with the logo of a subsidiary, Kellogg Brown & Root (KBR), was at the centre of a Democratic party hearing. According to a whistle-blowing former employee, the company tripled the price it charged the army, just to add its own initials. The towel is likely to become a potent symbol in the US presidential election. In a statement, Halliburton said it had temporarily suspended $174m of invoices for meals to the US army in Iraq and Kuwait. The announcement came two weeks after Halliburton agreed to repay $27m for meals served at five military bases last year. According to a Pentagon email quoted in the Wall Street Journal, in one camp alone last July, KBR billed for an average 42,000 meals a day but served only 14,000. In a seven-month period, alleged overcharging in that camp totalled $16m. Halliburton says it is difficult to plan for meals in a shifting environment "Most cooks know how many people are coming to dinner when they are preparing food," said KBR's chief executive, Randy Harl. "It's not that simple in Iraq." He said the firm was working with the army to predict numbers more accurately. The Pentagon's relations with Halliburton are already strained. Defence auditors are still investigating whether the company overcharged the US government $61m for fuel it was importing into Iraq. Mr Cheney ran the company between 1995 and 2000, when he quit to run for office, and it has been argued that the connection helped to secure the business in Iraq. He was given a severance package of $36m. The likely Democratic presidential nominee, John Kerry, has railed against special interests in the White House and focused on the company as a potential election issue. "At a time when Halliburton is defrauding the federal government and facing serious allegations of bribery, we look forward to taking this debate to George Bush," Mr Kerry said recently. Last week Halliburton said it had been informed that an investigation into possible business dealings with Iran during Mr Cheney's tenure had been reopened because of new evidence. It also faces allegations of corruption for its role in the building of a gas plant in Nigeria. A French whistle-blower has claimed that the consortium that built the plant, including KBR, paid $180m to Nigerian officials to secure the contract. In Iraq, Halliburton has admitted that two employees took kickbacks from a Kuwaiti subcontractor who was supplying services to the US army, and has reimbursed the government for $6.3m. In every other case though, the company denies the accusations. Two former KBR employees have come forward as whistle-blowers, providing the Democrats with plenty of further ammunition. They said the company "routinely overcharged" for its work in Iraq. "High-level Halliburton officials frequently told employees that the high prices charged by vendors were not a problem because the US government would reimburse Halliburton's costs and then pay Halliburton an additional fee," Democratic congressman Henry Waxman said. The company is fighting back against the negative publicity. A TV advertisement tells viewers: "We are serving our troops because of what we know, not who we know." Taken from http://www.guardian.co.uk/international/story/0,3604,1150320,00.html --------------------- - BACK TO INDEX - REPLY - QUOTE - EDIT - DELETE -

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