Do you just make this stuff up? You are mistaken sgt.
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Halliburton Makes A
Killing On Iraq War
Special Series By Pratap Chatterjee
Special to CorpWatch.org
3-22-3

In December 2001, Kellogg, Brown and Root, a subsidiary of Halliburton, secured a 10-year deal known as the Logistics Civil Augmentation Program (LOGCAP), from the Pentagon. The contract is a "cost-plus-award-fee, indefinite-delivery/indefinite-quantity service" which basically means that the federal government has an open-ended mandate and budget to send Brown and Root anywhere in the world to run military operations for a profit.

Halliburton Makes A Killing On Iraq War




This article appears in the July 15, 2005 issue of Executive Intelligence Review.

According to evidence presented on June 21 at the House Subcommittee on National Security hearing, and on June 27, by the Senate Democratic Policy Committee, the following has been established:

There is more than $1.4 billion in "questioned" and "unsupported" charges paid to Halliburton, according to Defense Department audit reports.


There are billions of dollars unaccounted for, taken in cash from the $19.6 billion Development Fund for Iraq account, created by UN Security Council resolution 1483 in May 2003, and administered solely by the U.S. occupation authority. According to the 25-page official report by the Minority Staff of the Committee on Government Reform, these funds are unaccounted for, have disappeared, or have been misappropriated.


Halliburton is documented to be the largest recipient of the Development Fund for Iraq funds (about $1.2 billion) and of all Defense Department contracts in Iraq (more than $15 billion).


Halliburton's contracts were handled outside of the professional, competitive bidding process that is standard procedure in the Defense Department. Instead, according to Ms. Bunatine Greenhouse, the top civilian contracting official at the U.S. Army Corps of Engineers, the Halliburton contracts were given special handling directly from "the OSD," the Office of the Secretary of Defense. Greenhouse was forced to step down or face demotion after objecting, in writing, to the special treatment granted to Halliburton; instead, she chose to file a whistleblower lawsuit.


Two executives from Lloyd-Owen International (LOI), a security and management firm with contracts from the Iraqi government, which began after the U.S. occupation handed over power to Iraqis, gave evidence that Halliburton's overcharges for fuel transportation from Kuwait to Iraq are even greater than previously believed, and that KBR, a Halliburton subsidiary, has not completed crucial fuel distribution work, despite its claim to have done so. In addition, Halliburton "has abused its relationship with the U.S. Army," by attempting to close the Iraq-Kuwait border so that LOI (a competitor of KBR) could not efficiently deliver fuel to the Iraq government.

The two LOI executives, Alan Waller and Gary Butters, gave dramatic testimony to the Senate that KBR managers had ordered their staff to deny assistance to LOI personnel, who had been attacked by insurgents en route to a base managed by KBR, near Fallujah. Four contract employees of LOI had been killed in the attack, and several others were wounded, but a KBR e-mail message presented to the Senators, showed that LOI was not to be helped. Fortunately, the U.S. Marines at the base came to the assistance of LOI.


KBR threatened personnel in Iraq, who were working under its food service contract, if they talked to U.S. government auditors who had been sent to look into KBR's practice of overcharging for dining hall services. Rory Mayberry, Food Production Manager at Camp Anaconda in Iraq, testified that he was warned, and then transferred to a much more dangerous base near Fallujah in order to keep him from talking further to auditors.
Obstruction of Justice?
There is no question that Cheney's office was directly involved in the special treatment given to Halliburton. A further question is whether Cheney's pressure to prevent the Senate and House committees from investigating constitutes obstruction of justice.

More than a year ago, on June 8, 2004, a DoD political appointee, neo-conservative insider Michael Mobbs, who worked directly at the Office of the Secretary of Defense, briefed the House Government Reform Committee that Cheney's Chief of Staff and National Security advisor, I. Lewis "Scooter" Libby, had been consulted and informed by Mobbs about a secret Iraq war contract being awarded to Halliburton, on March 8, 2002, before the contract had been awarded, and before the Iraq war had begun.

Mobbs acknowledged that the decision to award the contract to Halliburton, by extending a previous contract, was not made by career civil servants, but by political appointees, in particular by himself and an "Energy Infrastructure Planning Group," in the DoD which he headed. Mobbs determined that other longstanding DoD contractors—Bechtel and Fluor—were not qualified for the job, and were not even allowed to submit bids for the oil infrastructure contract. Mobbs, who was also acting as a special assistant to Assistant Secretary of Defense for Policy, Doug Feith, had been a member of Feith's law firm. Other special operations set up by Feith in 2002, such as the Office of Special Policy, functioned as a secret, parallel intelligence service, reporting to Cheney's office. Like the Iran-Contra operation of the 1980s, the Cheney-OSD-Feith network was a "government within a government."

Will Stolen Iraq Oil Funds and Deals For Cronies Force Cheney Impeachment?