Halliburton Allegedly Overcharges in Iraq
Thu Oct 16, 2:23 AM ET
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By LARRY MARGASAK, Associated Press Writer
WASHINGTON - Two Democratic lawmakers say Vice President
Dick Cheney former company, Halliburton, is
gouging U.S. taxpayers while importing gasoline into Iraq.
The Houston-based company contends it is paying the best price
possible.
Reps. Henry Waxman of California and John
Dingell of Michigan complained to the Bush
administration that Halliburton's KBR
subsidiary is billing the Army between $1.62
and $1.70 per gallon, while the average price
for Middle East gasoline is 71 cents.
They also complained that Iraqis are charged
between 4 cents and 15 cents at the pump for the imported gasoline.
"Although Iraq has the second largest oil reserves in the world, the U.S.
taxpayer is, in effect, subsidizing over 90 percent of the cost of gasoline
sold in Iraq," the lawmakers said in the latest Democratic attacks
against the Houston company that received a no-bid contract.
The charges cover the purchase and transportation of the petroleum from
Kuwait and other countries.
Halliburton, originally hired to extinguish oil fires, has received the
expanded role of restoring Iraq's oil industry. The company has been
paid $1.4 billion through September for its work.
"KBR is not responsible for establishing the price Iraqi motorists pay for
gasoline at the pump," Halliburton spokeswoman Wendy Hall said.
She said the company negotiates "fair and competitive prices" with
suppliers outside Iraq and must transport the gasoline in a hostile
environment.
The U.S. Army Corps of Engineers, which chose Halliburton, has
received bids for a replacement contract that could be awarded this
month.
Corps spokesman Robert Faletti said he could not confirm the figures
that Waxman and Dingell cited in a letter to Joshua Bolten, director of
the Office of Management and Budget.
He said, however, that the contract is being audited by Congress and the
Army.
In a further move against Halliburton, Sen. Frank Lautenberg, D-N.J.,
announced Wednesday he would propose barring the government from
awarding Iraq reconstruction contracts to companies that maintain close
financial ties to the president, vice president or members of the
president's Cabinet.
Lautenberg wants the measure added to an $87 billion reconstruction bill
for Iraq and Afghanistan (news - web sites).
Cheney receives deferred payments from Halliburton and also has stock
options.
Cheney's office has said the vice president had no role in the contract
and that the deferred payments were for his services while he headed the
company. He has said he would give the proceeds to charity should he
profit from the exercise of stock options. |
