You're an idiot.Originally Posted by Plow
Halliburton - Wikipedia, the free encyclopedia
TomPaine.com - Bringing Halliburton To HeelHalliburton is the only company mentioned by Osama bin Laden in an April 2004 tape in which he claims that "this is a war [in Afghanistan] that is benefiting major companies with billions of dollars."[24]
Internet pundit John Burnett has described Halliburton's deals as recalling a Vietnam-Era controversy. He claims Vice President Cheney's ties to the company are reminiscent of President Lyndon B. Johnson's relationships with Brown & Root.[1]
The Army's recent decision to break up Halliburton's logistics contract doesn't make a dent in the war profiteer's monopoly. And despite evidence that the giant corporation was vastly overcharging taxpayers for services it provides, it still has almost exclusive access to many contracts in Iraq. The good news is that there's a bipartisan proposal in the Senate to create a war profiteering oversight committee. Corporate policy expert Charlie Cray explains.Leading Pentagon watchdogs have been calling for Halliburton’s debarment or suspension from Pentagon contracts since August. At that time the Defense Contract Audit Agency (DCAA) issued a memo complaining that Halliburton could not account for more than $1.8 billion of $4.3 billion of work in Iraq and Kuwait. For the third time, the DCAA recommended that the Pentagon not pay Halliburton until it coughed up all the receipts.
The long list of waste, fraud, bribery and other abuses associated with Halliburton’s Iraq contracts now fill volumes. Vigilant oversight by Rep. Henry Waxman’s office and Pentagon investigators—with the help of company whistleblowers—have uncovered attempts to charge taxpayers $45 per case of soda, $100 per bag of laundry, $10,000 a day to use five-star hotels in Kuwait. (Meanwhile, the troops are sweating it out in tents in the desert). There’s been $167 million worth of price gouging for imported gasoline, and $186 million charged for meals that were never served to the troops, and a $6 million kickback to two employees (fired by the company) from a subcontractor.
Nor has the company’s record in Iraq been the only basis for calls for debarment, which come not only from members of Congress but also from watchdog groups like the Project on Government Oversight. POGO is a Washington, D.C.-based non-partisan non-profit organization with more than two decades experience monitoring Pentagon contracts.But when it comes to the contractor abuses witnessed in Iraq, it seems like all has been forgiven. Even the most egregious cases have failed to result in a suspension. For example, CACI International received an extension of its contract even after its role in the Abu Ghraib prison scandal was revealed. There are at least 25 ongoing criminal investigations related to the Iraq reconstruction contracts. Wanna bet how many result in suspension?
Another reason for the lack of action is the lack of any clear standards for the debarment penalty. Soon after assuming the presidency in 200, Bush quietly repealed a Federal Acquisition Regulation (FAR) standard that provided guidance for suspension or debarment. Without the rule, contracting officers admit that such decisions are subject to all kinds of political pressure and other considerations.
Yet short of debarment there are few effective penalties for waste, fraud and abuse. (No one has talked about a war profiteering tax or criminal sanction like the one enacted before WW I.) Although Pentagon auditors have repeatedly advised withholding payments to Halliburton for its work in Iraq, the company essentially has the Army in a bind, since it has threatened to withhold payment to its subcontractors in the event that it doesn’t get paid. And that can mean an interruption in service. Army spokespeople have warned against any action that might affect the troops.
But as Marie deYoung, a former Halliburton/KBR employee and Army captain, put it in a Senate hearing earlier this month, poorly planned contracts like those managed by Halliburton “can compromise military readiness and operational security.” Describing low morale among foreign contract workers whose loyalties could shift under pressure, problems with information security, and the hiring of thousands of truckers and civilians who have had to drive and work in the line of fire without the capacity or legal right to defend themselves in the face of insurgents who have attacked the convoys (dozens of Halliburton employees have died in Iraq), de Young concluded that “the Bush-Cheney administration compromised our military security by commercializing and outsourcing the military’s command and control of all phases of planning and management of combat service support missions for Operation Iraqi Freedom.”
Just before the Senate hearing, the military announced that it would be breaking up Halliburton’s big logistics contract (known as the LOGCAP) so that other bidders could compete, an acknowledgment of the fundamental problem: Halliburton has a virtual monopoly on the work it is doing in Iraq. What they didn’t say was that this monopoly was created in 1992 by then-secretary of Defense Dick Cheney, who characteristically justified the decision with a still-classified study that the Pentagon paid KBR to conduct.
Halliburton CEO David Lesar’s reaction to the Army’s announcement that it would break up the massive LOGCAP work (worth up to $9.4 billion so far for Halliburton): “If we do choose to rebid, we're going to jack the margins up significantly.”
Lesar’s response reveals just how little competition the company expects to result from the announcement.
That should be no surprise. It’s hard to imagine how anyone else will be able to seriously compete with the company given all the advantages it has from its existing work, presence in the region and familiarity with the byzantine Pentagon contracting bureaucracy. Given the plan to establish up to 14 permanent bases in the country and reports of low troop reserves, there will likely be as much work for Halliburton in Iraq and elsewhere in the coming years as it can handle, even if a few token task orders are thrown to another company.
Anyone who isn’t convinced should look back at the Pentagon’s record in reforming the oil restoration contracts (worth up to $8.2 billion for the company so far) after the original no-bid contract was “opened up” to the competition. At the Senate hearing on the Iraq contracts, the former head of Bechtel’s bidding team described the process that resulted as a “sham,” ultimately resulting in Bechtel’s withdrawal from the bidding process.
“In their conduct of the entire (Restore Iraqi Oil) program, I believe Pentagon officials, up and down the chain of command, ignored our federal laws and regulations and the procedures that normally ensure fair play,” the former Bechtel employee concluded. “I never saw anything approaching the arrogant and egregious ways in which the Corps treated Halliburton’s competitors and violated federal laws and regulations to ensure KBR kept its RIO work.”
Democracy Now! | Pratap Chatterjee on "Halliburton’s Army: How a Well-Connected Texas Oil Company Revolutionized the Way America Makes War”
PRATAP CHATTERJEE: Well, this actually goes back many years. Most people think, you know, well, Halliburton was brought in by Dick Cheney. Not true at all. Kellogg Brown, & Root, or Brown & Root at the time, was building warships during the Second World War. In Vietnam, they built almost all the bases there. You can go to Cam Ranh Bay in Southeast Asia. I talk about Donald Rumsfeld actually arriving in 1966. He visits the bases, and then he comes back to the US Congress, and he speaks in the House of Representatives, and he says, “This company, you know, they don’t have receipts. They are wasting money, and they’re paying off the President.” This, you know—
AMY GOODMAN: And they were paying…?
PRATAP CHATTERJEE: They were paying off the President.
AMY GOODMAN: Lyndon Baines Johnson.
PRATAP CHATTERJEE: In this case, Lyndon B. Johnson. So, fast-forward thirty-seven years, and he is the man who’s giving them a contract. And actually, it’s Rumsfeld really; it’s not even Cheney. It’s Rumsfeld who’s looking to this system of outsourcing war, of finding Indians to clean toilets and that sort of thing, so that Americans, you know, can invade Iraq.
AMY GOODMAN: But it’s Cheney who was head of Halliburton.
PRATAP CHATTERJEE: Cheney was the head of Halliburton from 1995 to 2000, and he made out well. He was actually a very bad CEO in some ways and a very good CEO in other ways. I mean, he took the company from making $100 million in US contracts to $2.3 billion in the five years he was there, so a large increase for the company. In fact, he made some very bad business decisions. He bought up a company that had a billion dollars in asbestos liability.
People often ask me, did Cheney get the contract—did he give the contract to Halliburton? I really think the question should be reversed: why did Halliburton hire Cheney, as opposed to why did Cheney hire Halliburton? Well, Cheney hired—Halliburton hired Cheney because of the revolving door, because they knew he could bring business to them. And once he actually became Vice President, Halliburton’s lobbying budget actually dropped by half. They stopped having to recruit—you know, having to lobby, because they already knew they were in.
They had these contracts set up from so many years ago. I mean, starting in Vietnam, building Diego Garcia. You know, I talk about them in Turkey in Adana. You know, Operation Northern Watch was supported by people working for a consortium called VBR, which was partly Brown & Root, Halliburton. So this has gone on for a long time. In Bosnia, you know, in Kosovo, under Clinton, Kellogg Brown & Root, then just Brown & Root, subsidiary of Halliburton, was, you know, cooking for the soldiers, building Camp Bondsteel in Kosovo. And today that continues. So this is not something that’s new. It is, in fact, you know, par for the course that Cheney would come in and work for them.No god damn oversight. No fair competition for government services.AMY GOODMAN: Pratap Chatterjee, we just have two minutes, and I want to go to that top story, reading the introduction, how it was just awarded KBR $35 million for electrical work, despite the fact that it’s under criminal investigation for the deaths of at least two Americans, and separately, the US government has just charged KBR with criminal bribery charges for promising and paying tens of millions of dollars to Nigerian officials in exchange for lucrative contracts. Explain both of those quickly.
PRATAP CHATTERJEE: Well, the contract in Nigeria, which was a contract with a consortium called TSKJ, Albert “Jack” Stanley, who was the head of KBR at the time, worked for Cheney, paid tens of millions of dollars to Nigerian officials. So they’re paying a half-billion-dollar fine to the US government for what happened at those times. So, this is a huge—I mean, this should be a much bigger story.
AMY GOODMAN: This is money that comes from taxpayers, US taxpayers. So US taxpayers are bribing Nigerian officials, or they’re doing it in our name.
PRATAP CHATTERJEE: Absolutely, that is exactly how—
AMY GOODMAN: And the Americans?
PRATAP CHATTERJEE: So, now, when KBR works in a place like Iraq, they are able to get away with a lot of shoddy work. And my book covers the fact that a lot of the work that was done, you know, because people weren’t watching, there wasn’t oversight, there wasn’t accountability, they were able to get away with shoddy electrical work, often bad food, overpriced items. A lot of times, there’s also a lot of detail of how, you know, people walked away with—the book opens with this guy Jeff Alex Mazon walking away with a $1 million check. And he’s paid that by a subcontractor to Halliburton. When the case came up at the Rock Island Arsenal, he said, “Look,” he says, “what’s wrong with this, getting this money? You know, this is money that is owed to me, because I did this work for Halliburton.”
XI Wiki


