Pentagon Opens Criminal Probe of Halliburton

[pandybat]

Unfortunately, they are investigating Halliburton for the wrong reason. They should be investigating Cheneys involvement and Halliburtons tax evasions.
If the Democrats focused a little more on Cheney and his dealings, they'd have more ammunition to use against Bush.

http://news.myway.com/top/article/id/329619|top|02-23-2004::18:52|reuters.html

Feb 23, 6:50 PM (ET)

WASHINGTON (Reuters) - The Pentagon said on Monday its criminal investigators were examining allegations of fraud against Halliburton Co. unit Kellogg Brown and Root, including potential overpricing of fuel delivered to Iraq.
"The Defense Criminal Investigative Service, the criminal investigative arm of the Inspector General's office, is investigating allegations on the part of KBR of fraud, including the potential overpricing of fuel delivered to Baghdad by a KBR subcontractor," said a Pentagon spokeswoman.

[Taxman]

Good, let's get to the bottom of this. The sooner this is off the table, the sooner we can focus on more important issues.

[pandybat]

Since I can't post an op-ed piece, can I post a link to one?
I'd like some opinions and some clarification on the points made in it.

[Taxman]

I'd rather you didn't. Why don't you just post the points you'd like to discuss?

[pandybat]

Mean ol' Taxman!
Ok...I'll see if I can scrape out some discussion points out of it.

[pandybat]

Ok....starting slow...I know we've discussed this before but I wasn't in on it...lol
Keep in mind, I am rewording some of this to make it appropriate for debate here.

As you know, the Bush administration has favored a handful of U.S. corporations with lucrative reconstruction contracts in Iraq while at the same time denying those contracts to foreign (even Iraqi) companies. Our president claims that it makes perfect sense to deny reconstruction contracts to countries like France and Germany because they did not support the U.S.-British invasion in the first place.

"The taxpayers understand why it makes sense for countries that risk lives to participate in the contracts in Iraq," Mr. Bush told reporters on December 11, 2003. "It's very simple. Our people risk their lives, friendly coalition folks risk their lives, and therefore the contracting is going to reflect that."

What the president fails to realize (and what no one in the Press Corp seems willing to explain to him), is that countries don't get reconstruction contracts; corporations do. And the U.S. corporations currently receiving those contracts didn't risk any more lives than did France or Germany. Halliburton did not send troops to Iraq.
Dick Cheney, our current VP, is a former CEO of Halliburton. Cheney is still receiving money from Halliburton. In 2002, for instance, he received $162,392 in what he's calling "deferred compensation" from Halliburton. That's not much less than the $190,000 he got for being Vice-president that year. In addition, he still owns over 400,000 stock options in Halliburton.

Comments? Because of Dick Cheneys involvement with Halliburton, should it have been allowed to gain one of those Iraq rebuilding contracts? Do you consider that a conflict of interest?

[monkee]

I'm not quite sure what to think about the whole Cheney/Halliburton thing, as I'm not very familiar with all of the details, so I really can't comment on it.

However, as far as saying "countries don't get the contracts, corporations do", is kind of missing the point. Corporations support the economy and economic growth in whatever country they are in. They employ people and pay taxes. Should we give (even indirect) support to the economy of France or Germany at the expense of U.S. or other coalition corporations? Yes, that would be good. Pump up some good old French company and let some U.S. corporations make some cutbacks and lay people off. Then we could complain about more lost jobs and blame it on Bush.

[pandybat]

Well, we basically only excluded France, Germany, Russia and Canada. I am in agreement that they should not receive rebuilding contracts because of their non-involvement in the war. But, there are many other countries that are eligible to receive those contracts. So the possibility of losing US jobs to another country is still out there. I'm trying to find a list of the countries that have received contracts or put in bids.

[pandybat]

Ok....found an article listing partial companies that received contracts. Looks as if the US gets all the major contracts and other countries can bid on the sub-contracts.

[Only registered and activated users can see links. Either login above or Register Now]

Rebuilding Iraq -- The Contractors
Even before the war in Iraq began March 20, the Bush administration was considering plans to help rebuild the country after fighting ceased. According to news reports in early March, the U.S. Agency for International Development secretly asked six U.S. companies to submit bids for a $900 million government contract to repair and reconstruct water systems, roads, bridges, schools and hospitals in Iraq.

The six companies -- Bechtel Group Inc., Fluor Corp., Halliburton Co. subsidiary Kellogg, Brown & Root, Louis Berger Group Inc., Parsons Corp. and Washington Group International Inc. -- contributed a combined $3.6 million in individual, PAC and soft money donations between 1999 and 2002, the Center reported on its news site, CapitalEye.org. Sixty-six percent of that total went to Republicans.

The bidding process has been criticized for including only a handful of companies, some with substantial political clout and none of which is based outside the United States. USAID officials said the recent invitations to bid on reconstruction contracts went to U.S. corporations for security reasons, and that foreign companies may compete for subcontracting work, Bloomberg News reports.

As the winners* of this and other contracts to rebuild Iraq are announced, we will post their campaign contributions -- large or small -- below. (Figures represent total contributions made between 1999 and 2002, and include PAC, soft money and individual contributions to federal candidates, party committees and leadership PACs.^)

Bechtel Group Inc.
The Contributions: $1,303,765 (59 percent to Republicans; 41 percent to Democrats)
Total to President Bush: $6,250
The Contract: USAID awarded the largest of its postwar Iraq contracts to Bechtel Group Inc. April 17. The capital construction contract gives Bechtel an initial award of $34.6 million, but provides for funding of up to $680 million over 18 months subject to Congress’ approval. Bechtel’s primary activities under the contract will include rebuilding power generation facilities, electrical grids, water and sewage systems and airport facilities in Iraq. The company has said it plans to subcontract a number of these projects.
The Company: Bechtel Group Inc., the San Francisco-based engineering company, has been in the construction business for more than 100 years and has completed close to 20,000 projects in 140 countries. The privately owned firm, which had revenues of $13.3 billion last year, has made a number of friends in Washington over the years. Former Secretary of State George Shultz, once Bechtel’s president, now serves on the company’s board of directors. USAID Administrator Andrew Natsios, who oversees the bidding process for postwar contracts, once headed the Boston-area “Big Dig” construction project, for which Bechtel was the primary contractor.

Halliburton Co.
The Contributions: $708,770 (95 percent to Republicans)
Total to President Bush: $17,677
The Contract: On March 25, the U.S. Army Corps of Engineers awarded Halliburton Co. subsidiary Kellogg, Brown & Root the main contract to fight oil well fires and reconstruct oil fields in Iraq. The open-ended contract, which has no specified time or dollar limit, was given to the company without a bidding process. KBR has already announced it will subcontract the actual firefighting operations to Boots & Coots International Well Control Inc. and Wild Well Control Inc., both based in Houston.
The Company: Halliburton Co., the Dallas-based oil field services giant that took in $12.5 billion in sales last year, is no stranger to government contracts. Kellogg, Brown & Root fought oil well fires in Kuwait and provided support services to U.S. forces in the Balkans in the 1990s. But Halliburton's ties to Washington have made it a target of criticism in the latest bidding process. Vice President Dick Cheney headed the company for five years before becoming George W. Bush's runningmate in 2000. Lawrence Eagleburger, former U.S. secretary of state under President George H. W. Bush, sits on the company's board.

DynCorp
The Contributions: $226,865 (72 percent to Republicans)
Total to President Bush: $7,500
Computer Sciences Corp. (acquired DynCorp March 7)
The Contributions: $276,975 (74 percent to Republicans)
Total to President Bush: $10,250
The Contract: The U.S. State Department awarded DynCorp, now a unit of Computer Sciences Corp., a multimillion-dollar contract April 18 to advise the Iraqi government on setting up effective law enforcement, judicial and correctional agencies. DynCorp will arrange for up to 1,000 U.S. civilian law enforcement experts to travel to Iraq to help locals "assess threats to public order" and mentor personnel at the municipal, provincial and national levels. The company will also provide any logistical or technical support necessary for this peacekeeping project. DynCorp estimates it could recoup up to $50 million for the first year of the contract.
The Companies: Founded in 1946, DynCorp has long provided U.S. government agencies--particularly the Defense Department--with logistical and training support. Computer Sciences Corp. acquired DynCorp in March of this year for $950 million. CSC is one of the country's leading IT consulting firms and reported revenues of more than $11 billion in 2002.

Stevedoring Services of America
The Contributions: $24,825 (77 percent to Republicans)
Total to President Bush: $1,000
The Contract: USAID awarded Stevedoring Services of America a $4.8 million contract on March 24 for "assessment and management" of the Umm Qasr port in southeastern Iraq. The agency says the Seattle-based company will operate the port as it receives shipments of humanitarian and reconstruction materials and will research ways to improve port productivity for the long term.
The Company: Stevedoring Services of America, the largest marine terminal operator in the United States, made an estimated $1 billion in sales last year. The family-owned and -operated company is a private venture.

Abt Associates Inc.
The Contributions: $4,900 (100 percent to Democrats)
Total to President Bush: $0
The Contract: USAID awarded Abt Associates a $10 million contract April 30 to help reform the Iraqi Ministry of Health and to deliver health services and medical equipment to Iraqis. Under the “Health System Strengthening Contract,” the firm will coordinate the training and recruiting of health staff and will provide health education to the general public. Abt will work in cooperation with UNICEF, the World Health Organization and other international organizations already on the ground in Iraq.
The Company: Abt Associates, based in Cambridge, Mass., is one of the largest for-profit government and business research and consulting firms in the world. In the United States, Abt has completed social and economic policy consulting, surveys and clinical trials for organizations such as the Environmental Protection Agency and the Centers for Disease Control. About one-third of the company’s revenues come from international activities.

SkyLink Air and Logistic Support (USA) Inc.
The Contributions: $3,900 (74 percent to Republicans)
Total to President Bush: $0
The Contract: USAID awarded SkyLink Air and Logistic Support (USA) Inc. an initial $2.5 million contract May 7 to help reopen and manage Iraq’s airports. SkyLink will oversee an international staff in its efforts to assess airport damage and get operations up and running. Ultimately, the company will turn over airport management to Iraqi staff.
The Company: Washington, D.C.-based SkyLink Air and Logistic Support is a government contractor with experience in emergency relief, peacekeeping, humanitarian aid and development activities in more than 60 countries. SkyLink’s regular clients include the United States and United Nations, which often use the company in areas plagued by war or natural disasters.

International Resources Group
The Contributions: $3,800 (61 percent to Democrats)
Total to President Bush: $0
The Contract: USAID awarded International Resources Group a $7 million, 90-day contract Feb. 21 for the management of relief and rebuilding efforts in postwar Iraq. IRG will coordinate efforts across multiple sectors, including education, health, agriculture, civil society and infrastructure.
The Company: International Resources Group is a Washington, D.C.-based professional services firm that manages complex environmental, energy and reconstruction situations for public and private sector clients. Founded in 1978, IRG has completed more than 600 projects, many of them for USAID.

Research Triangle Institute
The Contributions: $3,491 (all to Democrats)
Total to President Bush: $0
The Contract: USAID awarded Research Triangle Institute a $7.9 million contract April 11 to promote Iraqi civic participation in the reconstruction process. RTI will provide technical assistance and training programs in an effort to improve local administrators’ management skills and understanding of municipal services. RTI will also have the authority to grant contracts to Iraqi and foreign non-governmental organizations that will help train administrators and civilians in communication, conflict resolution, leadership and political analysis. Increasing political participation of “at-risk” groups-- including those that represent the interests of women, minorities and youth in Iraq—will be a top priority for RTI.
The Company: Research Triangle Institute is a non-profit organization based in Research Triangle Park, N.C. The group has worked in transitional regions for more than 20 years, and is a regular USAID contractor. RTI has completed governance work in South Africa, Indonesia and El Salvador and most recently won a $60 million USAID contract for educational development in Pakistan.

Creative Associates International Inc.
The Contributions: $2,000 (all to Democrats)
Total to President Bush: $0
The Contract: USAID awarded Creative Associates International Inc. a $2 million one-year contract April 11 to address the “immediate educational needs” of Iraq’s primary and secondary schools. Short-term activities covered under the contract include training teachers, providing students with school supplies and developing testing methods to track student performance.
The Company: Creative Associates International Inc. is a private consulting firm based in Washington, D.C., that provides community development assistance to transitional regions. The firm, which has revenues of $35 million per year, has completed more than 400 contracts since its inception in 1979.

*This list does not include subcontractors.
^Figures are based on data released by the Federal Election Commission on April 28, 2003.

[pandybat]

Here's more on Halliburton and their involvement in taking away US jobs and evading paying taxes to the US:

Halliburton, like many of the corporations favored with these lucrative contracts, is a seasoned tax evader. Halliburton has made an art-form of hiding profits in offshore tax shelters. While Cheney was at its helm, Halliburton quintupled its number of offshore "subsidiaries" in the Caribbean. It currently has 58.

To give you some idea of how good this has been for the company, consider this: In 1998, Halliburton paid $302 million in taxes. But in 1999, the company's new Caribbean tax havens allowed it to pay NO taxes while at the same time receiving a REFUND of $85 million.

If any nations ought to be denied federal contracts, it should be the Canary Islands, the Caymans, the Channel Islands, the Bahamas, the Maldives, and Bermuda. But of course, these places don't need reconstruction contracts to thrive; their income is earned almost entirely from providing tax shelters to ultra-rich American corporations that wish to hide their profits from their own government. Not to mention, taking jobs outside of the US.

There's more: One of Halliburtons off-shore subsidiaries was found guilty in 1995 of selling banned equipment to Libya, threatening our national security because the banned equipment could be used to make WMD's. Other Halliburton subsidiaries are still under investigation for selling banned equipment to other terrorist-supporting states, such as Iraq and Iran, also because this activity is a threat to our national security.
Here's an article that can explain it better: [Only registered and activated users can see links. Either login above or Register Now]


So now, I ask again, is Cheneys involvement with Halliburton a conflict of interest?

[pandybat]

Contracts that have been awarded and to whom: [Only registered and activated users can see links. Either login above or Register Now]

Thanks for the link, RH!

[crazytimes]

I don't care who rebuilds Iraq as long as it gets rebuilt and these people can live in peace and have schools, hospitals, etc.

[bassmount]

I have a question cause I really have not formed an opinion on this whole thing yet. Who is fitting the bill? Just the US? US and the UK? All the allied countries that were involved in the war?

[crazytimes]

Also, I do feel that giving the contracts to Haliburton being a conflict of interest.

[Taxman]

If the contacts had started under the current Administration, I'd agree. However, Halliburton has been the prime contractor for the Defense Department in the Middle East since at least the end of the first Gulf War as well as being the prime contactor in Kosovo.