Cheney Made Millions Off Oil Deals with Hussein
by Martin A. Lee
San Francisco Bay Guardian
November 13, 2000
Here's a whopper of a story you may have missed amid the cacophony of campaign ads and stump
speeches in the run- up to the elections.
During former defense secretary Richard Cheney's five-year tenure as chief executive of Halliburton, Inc.,
his oil services firm raked in big bucks from dubious commercial dealings with Iraq. Cheney left Halliburton
with a $34 million retirement package last July when he became the GOP's vice-presidential candidate.
Of course, U.S. firms aren't generally supposed to do business with Saddam Hussein. But thanks to
legal loopholes large enough to steer an oil tanker through, Halliburton profited big-time from deals with the
Iraqi dictatorship. Conducted discreetly through several Halliburton subsidiaries in Europe, these greasy
transactions helped Saddam Hussein retain his grip on power while lining the pockets of Cheney and
company.
According to the Financial Times of London, between September 1998 and last winter, Cheney, as CEO
of Halliburton, oversaw $23.8 million of business contracts for the sale of oil-industry equipment and
services to Iraq through two of its subsidiaries, Dresser Rand and Ingersoll-Dresser Pump, which helped
rebuild Iraq's war-damaged petroleum-production infrastructure. The combined value of these contracts
exceeded those of any other U.S. company doing business with Baghdad.
Halliburton was among more than a dozen American firms that supplied Iraq's petroleum industry with
spare parts and retooled its oil rigs when U.N. sanctions were eased in 1998. Cheney's company utilized
subsidiaries in France, Italy, Germany, and Austria so as not to draw undue attention to controversial
business arrangements that might embarrass Washington and jeopardize lucrative ties to Iraq, which will
pump $24 billion of petrol under the U.N.-administered oil-for-food program this year. Assisted by
Halliburton, Hussein's government will earn another $1 billion by illegally exporting oil through black-market
channels.
With Cheney at the helm since 1995, Halliburton quickly grew into America's number-one oil-services
company, the fifth-largest military contractor, and the biggest nonunion employer in the nation. Although
Cheney claimed that the U.S. government "had absolutely nothing to do" with his firm's meteoric financial
success, State Department documents obtained by the Los Angeles Times indicate that U.S. officials
helped Halliburton secure major contracts in Asia and Africa. Halliburton now does business in 130
countries and employs more than 100,000 workers worldwide.
Its 1999 income was a cool $15 billion.
In addition to Iraq, Halliburton counts among its business partners several brutal dictatorships that have
committed egregious human rights abuses, including the hated military regime in Burma (Myanmar).
EarthRights, a Washington, D.C.-based human rights watchdog, condemned Halliburton for two
energy-pipeline projects in Burma that led to the forced relocation of villages, rape, murder, indentured
labor, and other crimes against humanity.
A full report (this is a 45 page pdf file - there is also a brief summary) on the Burma connection,
"Halliburton's Destructive Engagement," can be accessed on EarthRights' Web site
Human rights activists have also criticized Cheney's company for its questionable role in Algeria,
Angola, Bosnia, Croatia, Haiti, Rwanda, Somalia, Indonesia, and other volatile trouble spots. In Russia,
Halliburton's partner, Tyumen Oil, has been accused of committing massive fraud to gain control of a
Siberian oil field.
And in oil-rich Nigeria, Halliburton worked with Shell and Chevron, which were implicated in gross
human rights violations and environmental calamities in that country. Indeed, Cheney's firm increased its
involvement in the Niger Delta after the military government executed several ecology activists and crushed
popular protests against the oil industry.
Halliburton also had business dealings in Iran and Libya, which remain on the State Department's list of
terrorist states. Brown and Root, a Halliburton subsidiary, was fined $3.8 million for reexporting U.S. goods
to Libya in violation of U.S. sanctions.
But in terms of sheer hypocrisy, Halliburton's relationship with Saddam Hussein is hard to top. What's
more, Cheney lied about his company's activities in Iraq when journalists fleetingly raised the issue during
the campaign.
Questioned by Sam Donaldson on ABC's This Week program in August, Cheney bluntly asserted that
Halliburton had no dealings with the Iraqi regime while he was on board.
Donaldson: I'm told, and correct me if I'm wrong, that Halliburton, through subsidiaries, was actually
trying to do business in Iraq?
Cheney: No. No. I had a firm policy that I wouldn't do anything in Iraq even arrangements that were
supposedly legal.
And that was it! ABC News and the other U.S. networks dropped the issue like a hot potato. As
damning information about Halliburton surfaced in the European press, American reporters stuck to old
routines and took their cues on how to cover the campaign from the two main political parties, both of which
had very little to say about official U.S. support for abusive corporate policies at home and abroad.
But why, in this instance, didn't the Democrats stomp and scream about Cheney's Iraq connection? The
Gore campaign undoubtedly knew of Halliburton's smarmy business dealings from the get-go.
Gore and Lieberman could have made hay about how the wannabe GOP veep had been in cahoots with
Saddam. Such explosive revelations may well have swayed voters and boosted Gore's chances in what
was shaping up to be a close electoral contest.
The Democratic standard-bearers dropped the ball in part because Halliburton's conduct was generally
in accordance with the foreign policy of the Clinton administration. Cheney is certainly not the only
Washington mover and shaker to have been affiliated with a company trading in Iraq. Former CIA Director
John Deutsch, who served in a Democratic administration, is a member of the board of directors of
Schlumberger, the second-largest U.S. oil-services company, which also does business through
subsidiaries in Iraq.
Despite occasional rhetorical skirmishes, a bipartisan foreign-policy consensus prevails on Capital Hill,
where the commitment to human rights, with a few notable exceptions, is about as deep as an oil slick.
Truth be told, trading with the enemy is a time-honored American corporate practice or perhaps
"malpractice" would be a more appropriate description of big-business ties to repressive regimes.
Given that Saddam Hussein, the pariah du jour, has often been compared to Hitler, it's worth pointing
out that several blue-chip U.S. firms profited from extensive commercial dealings with Nazi Germany.
Shockingly, some American companies =96 including Standard Oil, Ford, ITT, GM, and General
Electric secretly kept trading with the Nazi enemy while American soldiers fought and died during World
War II.
Today General Electric is among the companies that are back in business with Saddam Hussein, even
as American jets and battleships attack Iraq on a weekly basis using weapons made by G.E. But the
United Nations sanctions committee, dominated by U.S. officials, has routinely blocked medicines and
other essential items from being delivered to Iraq through the oil-for-food program, claiming they have a
potential military "dual use." These sanctions have taken a terrible toll on ordinary Iraqis, and on children in
particular, while the likes of Halliburton and G.E. continue to lubricate their coffers.
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