[Hpn] Fw: AP wire stuff on Halliburton

Thomas Cagle nh-adapt@juno.com
Sun, 13 Apr 2003 05:39:23 -0400

*Ah* the new federalism! Aint nothin' so good fer the union as a no-bid
contract, and not needing to deliver a thing for it.

Heck and no minority had to be troubled to russle up the paperwork to bid
for it either. Yah' know lets make sure that, that endangered minority
(white millionaires) doesn't get pushed even further in a corner; lets
set every contract for DOD billions is let out with the same "security"

Fourty years ago my grandpappy said that politics is like a cess-pool, if
it isn't flushed out every so often the turds will fill up the tank and
smell bad. These cold-warriors are living down to his estimation. 

Just so you knew where your Medicare prescription money went, read on.

From: Marta Russell 
Subject: Cheney should be impeached

The award to Halliburton's subsidiary KBR for putting out oil fires, 
mentioned below, is the one that went directly to Halliburton, with 
no outside bidding, and on to Halliburton's subsidiary KBR on March 
6, 2003.

At the time, there was no disclosure of its size, because according 
to the Army Corps of Engineers - that would have been a "security 
violation". KBR created the report about these upcoming oil fires. 
Based on their own report, they got this contract.

But, to put it in perspective, during the Gulf War over 700 oil well 
fires went off. This time around, the number of fires is a tiny 
fraction of that. The $7billion contract is significantly greater.

Amongst Halliburton's other transgressions like an SEC investigation 
into accounting practices that inflated after tax earnings 7%, 
thousands of asbestos related lawsuits (courtesy of a company Cheney 
bought during his Halliburton CEO years), and
the fact that Cheney gets $1 million per year compensation from them 
(being set aside for when he's out of public office to 'avoid 
conflict of interest'), KBR has been virtually profitless.

Yet, through a bizarre agreement, Halliburton is going to 'give' all 
the losses related to its lawsuits, and then have a part of KBR (the 
part without government contracts) file for chapter 11 bankruptcy.

Meaning, part of KBR disappears, the other part gets billion dollar 
government contracts for oil fires that don't exist.

Halliburton Subsidiary Awarded $7B Pact
Friday April 11, 2003 3:10 PM

WASHINGTON (AP) - A government contract awarded without competition 
to a Halliburton Co. subsidiary to fight oil well fires in Iraq is 
worth at least $7 billion over two years, the Army Corps of Engineers 
has disclosed to Congress.

The contract also allows Halliburton subsidiary KBR, an engineering 
and construction company, to earn another 7 percent in profit, valued 
at $490 million.

The corps released the details in response to an inquiry by Rep. 
Henry Waxman of California, the top Democrat on the House Government 
Reform Committee.

Waxman and Rep. John Dingell, D-Mich., have asked for an 
investigation into how the Bush administration is awarding contracts 
for the reconstruction of Iraq, which could cost as much as $100 
billion. They also want the General Accounting Office, the 
investigative arm of Congress, to determine whether Vice President 
Dick Cheney's former company may have received favorable treatment in 
their Pentagon contracts.

Lt. Gen. Robert B. Flowers, the Corps of Engineers commander, said in 
his letter to Waxman that KBR was asked to develop plans to restore 
Iraq's oil infrastructure based on an existing contract with the 
company that was awarded in December 2001.

``To invite other contractors to compete to perform a highly 
classified requirement'' that KBR already was involved in ``would 
have been a wasteful duplication of effort'' that would have delayed 
war planning, Flowers said, adding that the agreement was structured 
to control costs.

Waxman said the response raises new questions, including when KBR was 
asked to develop the plan or when the decision was made to implement 

``It also is surprising to learn that (KBR) is apparently the only 
company capable of performing this work in possession of the 
requisite security clearances,'' Waxman said in a new letter asking 
for more answers.

Waxman acknowledged that the Bush administration may have had valid 
reasons for granting a contract without competition for emergency war 
work, but ``it is harder to understand ... what the rationale would 
be for a sole-source contract that has a multiyear duration and a 
multibillion dollar price tag.''

He asked Flowers to provide information about how the cost of the 
work was determined and when the Army would replace the contract with 
one awarded through competition.

Waxman has said federal procurement data shows the government has 
awarded KBR work worth more than $624 million from October 2000 
through March 2002.

He said there had been previous problems with KBR, including 
overcharges, such as:

-A GAO finding in 1997 that the company billed the Army for 
questionable expenses for work in the Balkans, including charges of 
$85.98 per sheet of plywood that cost $14.06.

-A year 2000 follow-up report on the Balkans work that found inflated 
costs, including charges for cleaning some offices up to four times a 

-$2 million in fines paid in February 2002 to resolve fraud claims 
involving work at Fort Ord, Calif. The Defense Department inspector 
general and a federal grand jury had investigated allegations by a 
former employee that KBR defrauded the government of millions of 
dollars by inflating prices for repairs and maintenance.

The Securities and Exchange Commission began in December a formal 
investigation into Halliburton's accounting practices, focusing on an 
accounting change made in 1998 during Cheney's tenure as CEO.
Marta Russell
Los Angeles, CA

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