Report, testimony claim over $1.4b Halliburton abuse
RAW STORY
Scrutiny of Halliburton dealings with the U.S. military intensified today, as military and professional witnesses lambasted the company, and a report by two prominent Democrats and backed by a military audit priced the alleged abuse at over $1.4 billion.
Speaking at a hearing held by hill Democrats, Bunnatine Greenhouse, a procurement official from the Army's Corps of Engineers, launched a scathing attack on the actions of Halliburton subsidiary Kellogg Brown and Root. "I can unequivocally state," Greenhouse told lawmakers, "that the abuse related to contracts awarded to KBR represents the most blatant and improper contract abuse I have witnessed during the course of my professional career."
"The Office of the Secretary of Defense ultimately controlled the award of the RIO contract," Greenhouse said, "and controlled the terms of the contract that was to be awarded even over my objection to specific terms that were ultimately included in the contract." Greenhouse claimed that procedures normally handled by the U.S. Army Corps of Engineers were taken over by the State Department. "I observed, first hand, that essentially every aspect of the RIO (Restore Iraqi Oil) contract remained under the control of the Office of the Secretary of Defense."
Greenhouse claimed that KBR was allowed contracts without competition, that three-year contract extensions without competitive billing were written into some of the contracts, and that KBR was even permitted to bid on contracts that they had also determined the cost of, a practice that she said is normally forbidden.
Also released at the hearing was a report by Rep. Henry Waxman (D-CA) and Sen. Byron Dorgan (D-ND,) which is supported by a military audit that challenges over $1.4b in Halliburton charges. The Army auditors claim that the questionable charges are excessive, inflated, or repeated.
Waxman said in a statement that he believes it supports the testimony of former Halliburton employee and Army Chaplain Marie DeYoung, who claimed that the company was charging the military $45 for a case of soft drinks, and $100 a bag for laundry. The Defense Department audit claims $170 million in "unreasonable fuel costs" alone.
The report and audit also echo Greenhouse's claims of special treatment for the company, which paid Vice President Dick Cheney $194,852 in fixed deferred compensation in 2004. |
