[Hpn] Fw: AP wire stuff on Halliburton
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
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
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.
Los Angeles, CA
Sign Up for Juno Platinum Internet Access Today
Only $9.95 per month!