Exposing Bush Administration Corruption

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By Stephen Lendman (about the author) Page 3 of 4 page(s)

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In 2002, Arrigo tried a new tact - ingratiating herself with "Halliburton's Man" and using it to her advantage. She offered cooperation for access to his space and make him think she was on his side. It worked, went on for four and one-half months through late May, and it paid off - with plenty of insider knowledge "about Halliburton and how it works." Enough to fill a book, she says, but her account sticks to highlights.

First off, it's pure myth that Dick Cheney stopped running the company. "He called in orders to the man I worked for almost every day and sometimes two or more times a day. He remained (Halliburton's) functional head in all but name. No one....had the power to override his orders." Second, Cheney never divested himself of Halliburton profits. "He merely hid how (he got them) through a series of shell companies."

One of Arrigo's jobs was to liaison between Halliburton and CIA's "creative accounting departments." In other words, their co-conspiratorial treasury looting efforts, and Arrigo got insider access to it. Her advanced math and computer software training qualified her. In a few months, she became expert in how CIA and Halliburton hid their "financial illegalities."

She explained - "Computers are good ways to fool most people because (they don't) look inside of them." They can be programmed "to print out one set of books for regulators, another for Defense Contractors, another for the Pentagon, another for the taxpayer," and so forth. It's simple. Decide what you want, and machines will create it in any desired form. The trick is doing it expertly, most criminals can't, so they need professionals to do it for them. It means crimes are never secret, and many computer experts know about them. CIA has always been tainted, kept it secret since inception, so far has been untouchable, but remains vulnerable to exposure by people of conscience like Arrigo.

She explained: Halliburton has eight software programmers at CIA. Its home office has many more. She was on conference calls with 60 of them on ways to conceal illegalities and assure none of it leaks out. The company has less expertise than CIA so the Agency took charge to make the two systems compatible. It took several years and over 100 programmers. They came, left for other jobs, and took insider knowledge with them. It risks more leaks about Halliburton, other contractors, CIA, the Pentagon, high-ups in government, and the Basel-based Bank of International Settlements for its part in corruption.

Many investigations are ongoing, but huge pressure is exerted to quash them. It's feared leaks may unravel the whole scheme - a vast corruption web involving countless numbers of contractors, related companies, and many high level government and Pentagon insiders. Cover-up software hides it. Taxpayers fund it. Amounts keep getting greater, and they're up to unimaginable levels.

Arrigo explained the system. Suppose Halliburton sold product A in 100 Lot Sizes, in Quantity X at Price Y to the Pentagon on a given date. Most civilian invoices disclose this. Pentagon ones don't so contractors can cheat and Pentagon brass profit. Missing information conceals whether all merchandise was delivered as nothing indicates quantities shipped. Further, repackaging also hides proper amounts. Omitting the price alone conceals whether a shipment was shorted, but CIA is more clever than that. It experimented with "tested receivers at some of its front companies" to learn how best to deceive them. What works best is "shifting prices around like random noise" - one day this cost, another a different one, and so forth.

One company used a "gross overcharge method" that looked suspicious. It got receivers to discover the real price, and that defeated CIA's scheme. When it works, it cooks the books, and no one's the wiser. Ledger entries are inflated, undercut, omitted, added, or varied in amounts of similar transactions. Like a "professional crime institution," CIA is expert at falsifying books so no one catches on. How? By random price variations to keep auditors off balance and unable to discover corruption patterns.

Another example:

CIA varies its front company prices monthly. Suppose Halliburton made a purchase "when it (used) a cost inflation idea of cheating. Halliburton (has) an incentive to inflate the cost of its purchases (to) justify (its) high (price) to the military." So as standard practice it uses CIA's highest price and claims that amount for its cost.

But comparing two sets of books reveals the scheme. So methodology became more sophisticated to conceal it. Halliburton takes CIA prices and doubles them on its books. It then claims the Agency recorded half the charge "accidently," says its front company promised a 50% discount, but never delivered. CIA looks bad, and it balked. No matter. Halliburton still does it, but CIA has "lots of fronts with lots of customers and worse problems (to hide) than merely jacking up prices. Some fronts (are) fictitious and (make) no products." Others have real customers plus fake ones to launder money. CIA tries to "make (their) crimes 'undetectable.' " Halliburton hopes to "sneak by" until caught, then find a way to weasel out of it with minimal damage or cost.

Case 4: Halliburton's Rigged Back Door Accounting Computer at the Pentagon

In early 2002, GAO got damning evidence: that Halliburton overbills and short-ships - deliberate fraudulent acts as standard company practice, confident it can get away with it, and most often it does.

GAO has the goods to expose it from Halliburton and Pentagon invoices. They reveal a problem. They don't match, are grossly inflated, and payments exceed amounts billed - by about 35%. Arrigo met with GAO and compared notes. Halliburton has similar Pentagon and CIA-paid staff, and George Bush approved it in a secret Executive Order Arrigo has for proof. She gave it to GAO plus other documents showing national security is compromised and taxpayers cheated - hugely.

One document lists Halliburton's CIA and Pentagon staff, what little official records discloses about them, their secret office locations, and information on their private security staff. Arrigo discovered that Halliburton's top CIA man served time for felony fraud. Another at Pentagon was convicted as well - for stealing Army vehicles, then profiteering by transshipping them overseas.

Dick Cheney knew, blocked background checks to conceal it, but Arrigo found out and about the Pentagon fraud that followed. She has a handwritten Cheney memo instructing his man "to make sure that the Pentagon pays us all that it owes us and then some." CIA's forgery department verified the writing is Cheney's.

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I am a 72 year old, retired, progressive small businessman concerned about all the major national and world issues, committed to speak out and write about them.

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