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Cheney and Halliburton Hold Title - Top Earners In Iraq

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Evelyn Pringle
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I guess Cheney would have us believe that 2 guys stuffed $6.3 million in their back pockets without Halliburton's knowledge. Well call me cynical or whatever, but I don't buy it.

This time around, the Bush team not only ignored the blatant misconduct, it gave Halliburton another $1.2 billion contract, a move that even upset republicans. Rep Tom Davis, Chairman of the House Committee on Government Reform stated: "It's incomprehensible that the [Bush] Administration could give Halliburton another billion-dollar contract without fully investigating such serious criminal wrongdoing."

And that ain't all. In June 2004, the Pentagon's Defense Contract Audit Agency
completed a review that found Halliburton had billed for 36% more meals in Iraq than it had served to the troops, resulting in an overcharge estimated to be as high as $186 million.

In July 2004, the GAO reported that when Halliburton acted as a middleman for the operation of dining halls, costs were over 40% higher.

So what kind of punishment did this misdeed bring? The DCAA told Halliburton to send all bills to their agency for approval before submitting them for reimbursement.

In an August 16, 2004, memorandum, the DCAA "identified significant unsupported costs" submitted by Halliburton and said "while contingency issues may have had an impact during the earlier stages of the procurements, clearly, the contractor should have adequate supporting data by now."

When DCAA examined 7 task orders with a combined proposed value of $4.33 billion, its auditors identified unsupported costs totaling $1.82 billion.

On September 16, 2004, the Pentagon found that $34.2 million of the costs associated with KBR's task order of the Iraqi oil infrastructure contract were unreasonable, including $14.9 million in overcharges and $17.7 million in "unsupported" costs.

On March 14, 2005, a Pentagon audit discovered $108 million in overcharges by KBR for delivering gasoline to Iraq. The minority staff of the House Government Reform Committee later determined that the total overpayment through April 1, 2004 was $167 million

And that still ain't all. In another case of fraud, government auditors found Halliburton claimed to have lost over $60 million worth of government property in Iraq, including trucks, office furniture and computers.

Stuart Bowen, auditor of the now-disbanded Coalition Provisional Authority, said that 6,975 of 20,531 items on Halliburton's ledgers were unaccounted for.

"This occurred because KBR did not effectively manage government property," his report said. "As a result," Bowen said, "we projected that KBR could not account for 6,975 property items from an inventory of 20,531 valued at $61.1 million."

The June 2005 DCAA study revealed new evidence of Halliburton fraud to include the company: (1) overcharged or presented questionable bills for close to $1.5 billion; (2) lost 12 pre-fabricated bases worth over $75; (3) billed $152,000 to provide a movie library for 2,500 soldiers; and (4) submitted inconsistent billings, eg: video cassette players $300 in some instances, and $1000 in others; $2.31 for towels one day and $5 on another.

If Cheney is to be believed, the conspiracy to pick on Halliburton is a global effort because as of July 2004, the French, British, Nigerian and US governments were all investigating Halliburton's activities while Cheney was CEO, for paying over $180 million in bribes to Nigerian officials in exchange for a $6 billion contract to build a natural gas plant in Nigeria.

In this investigation, former Halliburton employees are ratting out Cheney himself. Ex-Halliburton consultant, Attorney Jeffrey Tesler, testified under oath in May, 2004 that he made bribery payments to Jack Stanley, while Stanley was president of Halliburton subsidiary KBR, and also made payments to Halliburton executive William Chaudran. His testimony was backed up by banking records and Tesler said CEO Cheney approved the payments.

Cheney had better not get too comfortable because his criminal empire may soon come crashing down around him. If democrats take back the house and the senate next November, I think its safe to say that investigations will follow.

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Evelyn Pringle is a columnist for OpEd News and investigative journalist focused on exposing corruption in government and corporate America.
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