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NewChief
03-15-2005, 06:48 AM
I know, I know, Halliburton is so 2004. But war profiteering never goes out of style.

http://www.boston.com/dailynews/073/economy/Pentagon_auditors_question_mor:.shtml


Pentagon auditors question more than $108 million in Halliburton charges
By Matt Kelley, Associated Press, 3/14/2005 16:45


WASHINGTON (AP) Pentagon auditors questioned more than $108 million in costs claimed by Halliburton on its $875 million contract to provide fuel in Iraq in 2003 and 2004, according to records released Monday.

The Defense Contract Audit Agency also faulted Halliburton Co. subsidiary KBR for failing to provide the records necessary to evaluate spending on the contract. The data KBR gave the auditors didn't match the company's internal accounting records, the agency said in a report dated Oct. 8.

The charges auditors questioned included a payment of $27.5 million to transport $82,000 worth of propane.

Halliburton spokeswoman Wendy Hall said Monday the Houston-based company gave the auditors all of its necessary records. She repeated the company's position that it did not overcharge for fuel delivered to Iraq.

''The facts show that KBR delivered fuel crucial to the Iraqi people when failure was not an option,'' Hall said in a statement.

Congressional Democrats critical of Halliburton's work in Iraq released the executive summary of the DCAA audit Monday. The audit was advisory and did not require the Pentagon to take any action against Halliburton. The Defense Department has rejected calls for it to cut off its current contracts with Halliburton because of the controversy.

Reps. Henry Waxman, D-Calif., and John Dingell, D-Mich., also wrote to President Bush saying Halliburton got ''extraordinary treatment'' from the administration.

Vice President Dick Cheney headed Halliburton from 1995 to 2000. Bush, Cheney and other administration officials deny Cheney had any role in Halliburton's government contract work.

KBR got more than $875 million to provide gasoline, kerosene and other fuel in Iraq between May 2003 and January 2004. The Defense Department gave that work to KBR under an existing logistics contract without asking for bids from other firms.

Overall, Halliburton has made more than $2.5 billion under various government contracts in Iraq since the March 2003 invasion.

The auditors questioned $108,409,622 in costs KBR claimed on the fuel contract. The largest part of that, more than $62 million, involved charges for fuel delivered to KBR in Kuwait by a government-approved subcontractor called Altanmia.

Preliminary reports from DCAA auditors in 2003 questioned $61 million of those charges for fuel from Altanmia, saying it may have been too expensive. KBR has said it was forced to use Altanmia by the Kuwaiti government and could not get a better price.

''The report fails to take into account the fact that KBR performed an urgent mission at the Army's request and that the mission took place in a wartime environment,'' Hall said Monday.

But the October audit faulted KBR for not attempting to get a better deal in the months after the fuel contract began in May 2003.

''It is not reasonable to use prices negotiated in only a few days, under extremely difficult circumstances, for the entire period of performance which extends for almost a year (229 days),'' the auditors wrote.

The auditors wrote it was ''illogical'' for KBR to spend more than $27.5 million to send $82,000 worth of propane from Kuwait into neighboring Iraq.

The price data KBR provided on the fuel it sent to Iraq from Jordan and Turkey didn't match the numbers in KBR's internal accounting system, the auditors wrote.

KBR also agreed to retroactively pay Turkish fuel suppliers after the costs of fuel rose, adding an additional $16.8 million in costs, the auditors found. That's despite having fixed-price contracts with the suppliers which were meant to prevent price increases from affecting the fuel trucked into Iraq, the auditors said.

Halliburton shares rose $1.62, or 4 percent, to close at $42 in Monday trading on the New York Stock Exchange, near the high end of their 52-week range of $26.45 to $45.29.

Cochise
03-15-2005, 07:41 AM
I know, I know, Halliburton is so 2004.

I would say closer to 2000.

Michael Michigan
03-15-2005, 07:50 AM
I would say closer to 2000.

Liberal years are like dog years.

Cochise
03-15-2005, 08:12 AM
Liberal years are like dog years.

That explains why Hillary and Pelosi seem to age 7 years for every 1.

NewChief
03-15-2005, 08:36 AM
Liberal years are like dog years.

Good one.

the Talking Can
03-15-2005, 10:08 AM
Halliburton is the gift that keeps on stealing...from our troops in a time of war...good thing we're having hearings on steroid abuse in baseball, man, those guys have got their priorities straight...but did you hear about Micheal Jackson blah blah....

Cochise
03-15-2005, 10:30 AM
Halliburton is the gift that keeps on stealing...from our troops in a time of war...good thing we're having hearings on steroid abuse in baseball, man, those guys have got their priorities straight...but did you hear about Micheal Jackson blah blah....

Why don't you take that up with your boys Waxman (D - California) and McCain (D - Arizona)?

the Talking Can
03-15-2005, 11:02 AM
Why don't you take that up with your boys Waxman (D - California) and McCain (D - Arizona)?

wolfman has trained you well

I'm trying to imagine a more pointless response....let me go dig up some of wolfman's old gems, I'll get back to you.

NewChief
03-15-2005, 11:21 AM
Why don't you take that up with your boys Waxman (D - California) and McCain (D - Arizona)?

Ironically enough, Waxman is also the Halliburton gadfly that keeps filing formal complaints on that issue.

Guess he's got enough gumption to assault on multiple issues.

Radar Chief
03-15-2005, 11:54 AM
wolfman has trained you well

I'm trying to imagine a more pointless response....let me go dig up some of wolfman's old gems, I'll get back to you.

:rolleyes: Denise has trained you well

I'm trying to imagine a more pointless response....let me go dig up some of Recount's old gems, I'll get back to you.

SBK
03-15-2005, 12:16 PM
Since Halliburton is evil, we should hire another company to do the work they are doing. Any suggestions?

Duck Dog
03-15-2005, 01:49 PM
Since Halliburton is evil, we should hire another company to do the work they are doing. Any suggestions?

Wouldn't any company that can do what Haliburton does be evil?

Oh wait...there aren't any contactors that can do what Haliburton does.

Soupnazi
03-15-2005, 01:50 PM
Since Halliburton is evil, we should hire another company to do the work they are doing. Any suggestions?

I've asked that before and heard only crickets chirping in response.

Calcountry
03-15-2005, 06:54 PM
I know, I know, Halliburton is so 2004. But war profiteering never goes out of style.

http://www.boston.com/dailynews/073/economy/Pentagon_auditors_question_mor:.shtml

I can't get enough Halliburton either, STOCK that is. Its going to Pluto man.