FBI to investigate Halliburton

[Guest Brian]

Link

 

FBI investigating Halliburton contracts

 

By JOHN SOLOMON

ASSOCIATED PRESS WRITER

 

 

  Halliburton Co.'s main offices are housed in this skyscraper in downtown Houston, shown Wednesday, Aug. 8, 2004.The company reported Tuesday, Oct. 26, 2004, that it swung to a loss in the third quarter due to $230 million in charges to pay for a settlement of asbestos claims. (AP Photo/Pat Sullivan) 

WASHINGTON -- The FBI has begun investigating whether the Pentagon improperly awarded no-bid contracts to Halliburton Co., seeking an interview with a top Army contracting officer and collecting documents from several government offices.

 

The line of inquiry expands an earlier FBI investigation into whether Halliburton overcharged taxpayers for fuel in Iraq, and it elevates to a criminal matter the election-year question of whether the Bush administration showed favoritism to Vice President Dick Cheney's former company.

 

FBI agents this week sought permission to interview Bunnatine Greenhouse, the Army Corps of Engineers' chief contracting officer who went public last weekend with allegations that her agency unfairly awarded KBR, a Halliburton subsidiary, no-bid contracts worth billions of dollars for work in Iraq, according to documents obtained by The Associated Press.

 

Asked about the documents, Greenhouse's lawyers said Thursday their client will cooperate but that she wants whistle-blower protection from Pentagon retaliation.

 

"I think it (the FBI interview request) underscores the seriousness of the misconduct, and it also demonstrates how courageous Ms. Greenhouse was for stepping forward," said Stephen Kohn, one of her attorneys.

 

"The initiation of an FBI investigation into criminal misconduct will help restore public confidence," Kohn said. "The Army must aggressively protect Ms. Greenhouse from the retaliation she will encounter as a result of blowing the whistle on this misconduct."

 

FBI agents also recently began collecting documents from Army offices in Texas and elsewhere to examine how and why Halliburton, a Houston-based oil services conglomerate, got the no-bid work.

 

"The Corps is absolutely cooperating with the FBI, and it has been an ongoing effort," said Army Corps spokeswoman Carol Sanders. "Our role is to cooperate. It's a public contract and public funds. We've been providing them information for quite a while."

 

 

 

The FBI declined to comment Thursday, but a law enforcement official, speaking on condition of anonymity, said the investigation does not involve anyone in the White House - including Cheney's office.

 

Wendy Hall, a Halliburton spokeswoman, said the company is cooperating with various investigations, but she dismissed the latest revelation as election politics. She noted Congress' auditing arm, the Government Accountability Office, found the company's no-bid work in Iraq was legal.

 

"The old allegations have once again been recycled, this time one week before the election," Hall said. "The GAO said earlier this year that the contract was properly awarded because Halliburton was the only contractor that could do the work.

 

"We look forward to the end of the election, because no matter who is elected president, Halliburton is proud to serve the troops just as we have for the past 60 years for both Democrat and Republican administrations," she said.

 

Cheney spokesman Kevin Kellems, asked if investigators had contacted the vice president or his office about the contracts, said they had not.

 

Democrats have tried to make Halliburton an election-year issue, and vice presidential candidate John Edwards quickly seized upon the latest development. In a CBS interview, Edwards said there was a "long pattern of favoritism" between the Bush administration and its well-connected friends.

 

Sen. Frank Lautenberg, a Democrat on the Senate Governmental Affairs Committee who has been investigating Halliburton's contracts, said his office was told the FBI recently sought documents from various government offices. The requests focused on how and why Halliburton got the Iraq contracts.

 

"This multibillion dollar no-bid contract to Halliburton was suspicious from day one, and now our worst suspicions are confirmed," Lautenberg said. "The FBI doesn't get involved unless there are possible criminal violations."

 

In a formal whistle-blower complaint filed last week, Greenhouse alleged the award of contracts without competition to KBR puts at risk "the integrity of the federal contracting program as it relates to a major defense contractor." The contracts were to restore Iraq's oil industry.

 

Among the evidence cited in the complaint was an internal 2003 Pentagon e-mail that says the Iraq contract "has been coordinated" with Cheney's White House office.

 

The vice president, who continues to receive deferred compensation from when he was Halliburton's chief executive in the late 1990s, has steadfastly maintained he has played no role in the selection of his former company for federal business.

 

The Army last week referred Greenhouse's allegations to the Defense Department's inspector general. Documents show FBI agents from Quad Cities, Ill., asked Tuesday to interview Greenhouse. Her lawyers declined to discuss the contacts.

 

Greenhouse alleged in her complaint that after her superiors signed off on the Iraq business in February 2003, a month before the war began, and returned it for her necessary approval, she specifically asked why the work was being extended for several years.

 

Beside her signature, Greenhouse wrote: "I caution that extending this sole-source effort beyond a one-year period could convey an invalid perception that there is not strong intent for a limited competition," the complaint said.

 

The oil restoration work was given to KBR without competitive bidding through 10 separate work assignments called "task orders." The orders were issued under an existing contract between Halliburton and the U.S. military that was awarded competitively in December 2001.

 

While the Corps was authorized to spend up to $7 billion for the oil restoration work, the actual cost so far has been $2.5 billion. Halliburton is still working on the oil facilities, but it is now operating under a new, competitively awarded contract.

[NoCalMike 0]

Haliburton corrupt? Get outta town.

[Rob E Dangerously 0]

will this investigation lay the hurtin' on Halliburton?

 

[/bad rhyme]

[Guest CronoT]

As long as Ashcroft is the Attorney General, this will go nowhere. Bush and Cheney won't let their BUTT buddies get in trouble, or worse, lose money.

[NoCalMike 0]

As long as Ashcroft is the Attorney General, this will go nowhere. Bush and Cheney won't let their BUTT buddies get in trouble, or worse, lose money.

Well if Haliburton execs even ever have to own up to the corruption and ass raping of american tax payers, I wonder if Bush will give the same "starry blank face" he gave to the media before walking out on them, when Mr. Ken Lay went down.

[Guest CronoT]

As long as Ashcroft is the Attorney General, this will go nowhere. Bush and Cheney won't let their BUTT buddies get in trouble, or worse, lose money.

Well if Haliburton execs even ever have to own up to the corruption and ass raping of american tax payers, I wonder if Bush will give the same "starry blank face" he gave to the media before walking out on them, when Mr. Ken Lay went down.

Ken Lay and the guys at Enron were just "friends." This, however, has the potential of going all the way to the top, meaning Cheney, possibly even Bush. If that's true, it will make Nixon look like "Little Mary Sunshine."

[teke184 0]

As long as Ashcroft is the Attorney General, this will go nowhere. Bush and Cheney won't let their BUTT buddies get in trouble, or worse, lose money.

Then it'll go somewhere within about 60 to 90 days. Ashcroft's pretty much out even if Bush gets re-elected because he's got health problems.

[Jobber of the Week 0]

As long as Ashcroft is the Attorney General, this will go nowhere. Bush and Cheney won't let their BUTT buddies get in trouble, or worse, lose money.

Another option is that Halliburton gets fined but the final report denies any ties or corrupt dealings going on with that whole "former CEO is the Vice President" thing.

 

It would be a cute way for Halliburton to pay back the money they overcharged for while Bush can go "See? There is no conflict of interest or secret deals! The FBI said so!"

[Guest MikeSC]

Of course, nobody can point to any benefits Cheney would receive, since he gets his severance package no matter if Halliburton makes a dime or not.

 

I still love Dems bitching about Halliburton when the head of the DNC was neck deep in the Global Crossing scandal.

-=Mike

...Then again, the Dems also have no problem with bailing out the airlines, whom the wife of the Democratic leader happens to lobby for...

[Guest CronoT]

Of course, nobody can point to any benefits Cheney would receive, since he gets his severance package no matter if Halliburton makes a dime or not.

 

I still love Dems bitching about Halliburton when the head of the DNC was neck deep in the Global Crossing scandal.

-=Mike

...Then again, the Dems also have no problem with bailing out the airlines, whom the wife of the Democratic leader happens to lobby for...

Yeah, God forbid the airlines keep running, and not doom our economy back to the Stone Age. I don't mind massive food shortages and price hikes, do you?

[Guest MikeSC]

Of course, nobody can point to any benefits Cheney would receive, since he gets his severance package no matter if Halliburton makes a dime or not.

 

I still love Dems bitching about Halliburton when the head of the DNC was neck deep in the Global Crossing scandal.

        -=Mike

...Then again, the Dems also have no problem with bailing out the airlines, whom the wife of the Democratic leader happens to lobby for...

Yeah, God forbid the airlines keep running, and not doom our economy back to the Stone Age. I don't mind massive food shortages and price hikes, do you?

The airlines were struggling before 9/11 because they provide shit service, book too many flights, and just ran one real shitty business.

 

So Congress did what it should have never done and bailed out a private business from it's own inept management.

 

And Daschle profited nicely from it.

-=Mike

[Guest CronoT]

Of course, nobody can point to any benefits Cheney would receive, since he gets his severance package no matter if Halliburton makes a dime or not.

 

I still love Dems bitching about Halliburton when the head of the DNC was neck deep in the Global Crossing scandal.

        -=Mike

...Then again, the Dems also have no problem with bailing out the airlines, whom the wife of the Democratic leader happens to lobby for...

Yeah, God forbid the airlines keep running, and not doom our economy back to the Stone Age. I don't mind massive food shortages and price hikes, do you?

The airlines were struggling before 9/11 because they provide shit service, book too many flights, and just ran one real shitty business.

 

So Congress did what it should have never done and bailed out a private business from it's own inept management.

 

And Daschle profited nicely from it.

-=Mike

*clears throat*

 

Enron.

[Guest MikeSC]

Bush did nothing to help Enron. He let them sink under their own illegal accounting practices. Former Clinton people called Bush to help and he said no.

 

THAT takes integrity. To allow a friend to suffer because he did wrong is not easy.

 

Feel free to prove anything beyond that, because you and I both know you cannot.

-=Mike

[Guest CronoT]

Bush did nothing to help Enron. He let them sink under their own illegal accounting practices. Former Clinton people called Bush to help and he said no.

 

THAT takes integrity. To allow a friend to suffer because he did wrong is not easy.

 

Feel free to prove anything beyond that, because you and I both know you cannot.

          -=Mike

I guess I have to spell it out for you:

Republicans led to electric deregulation; electric deregulation led to Enron entering the energy market, which led to corruption; corruption led to massive price increases and rolling blackouts in California and in other states.

 

Is it clear enough now, or do I need to draw a connect the dots puzzle?

[NoCalMike 0]

Of course, nobody can point to any benefits Cheney would receive, since he gets his severance package no matter if Halliburton makes a dime or not.

 

I still love Dems bitching about Halliburton when the head of the DNC was neck deep in the Global Crossing scandal.

        -=Mike

...Then again, the Dems also have no problem with bailing out the airlines, whom the wife of the Democratic leader happens to lobby for...

Yeah, God forbid the airlines keep running, and not doom our economy back to the Stone Age. I don't mind massive food shortages and price hikes, do you?

The airlines were struggling before 9/11 because they provide shit service, book too many flights, and just ran one real shitty business.

 

So Congress did what it should have never done and bailed out a private business from it's own inept management.

 

And Daschle profited nicely from it.

-=Mike

Gotta agree with MikeSC here. Corporate Welfare is a problem in this country....Mike, welcome to the Green Party platform

[Guest MikeSC]

If it makes you happy, when I was a kid, I thought the bailout of GM was absolutely absurd. Nothing guarantees inefficient business practices than the gov't bailing them out when they hit a wall.

-=Mike

[Guest CronoT]

If it makes you happy, when I was a kid, I thought the bailout of GM was absolutely absurd. Nothing guarantees inefficient business practices than the gov't bailing them out when they hit a wall.

-=Mike

If GM goes to shit, then the Japanese will move in and take over, just like they did with electronics.

 

If the airplanes stop running, our economy will literally grind to a halt, since it is almost entirely dependant on the speed possible with air travel. I don't know about you, but I like my fresh vegetables fresh, not frozen. That's the only way they can be transported by truck.

 

Our economy and our culture is almost completely dependant on air travel. Without it, the country would decscend into financial chaos.

[Guest MikeSC]

If it makes you happy, when I was a kid, I thought the bailout of GM was absolutely absurd. Nothing guarantees inefficient business practices than the gov't bailing them out when they hit a wall.

      -=Mike

If GM goes to shit, then the Japanese will move in and take over, just like they did with electronics.

 

If the airplanes stop running, our economy will literally grind to a halt, since it is almost entirely dependant on the speed possible with air travel. I don't know about you, but I like my fresh vegetables fresh, not frozen. That's the only way they can be transported by truck.

 

Our economy and our culture is almost completely dependant on air travel. Without it, the country would decscend into financial chaos.

Then, obviously, the airline industry will survive. Some companies would die, but that was a necessity, as the industry was horribly inefficient. Want to have a Japanese-level economic collapse? Have the gov't protect inefficient businesses from market forces.

 

If it's so vital, somebody will find a way to make it profitable.

 

Air travel is overrated.

-=Mike

[NoCalMike 0]

If it makes you happy, when I was a kid, I thought the bailout of GM was absolutely absurd. Nothing guarantees inefficient business practices than the gov't bailing them out when they hit a wall.

     

 

 

If GM goes to shit, then the Japanese will move in and take over, just like they did with electronics.

[kkktookmybabyaway 0]

What's up with all this Halliburton-Bush Adminstration connection talk? Does someone working for Bush now used to work at Halliburton back in the day?...

[CheesalaIsGood 0]

Of course, nobody can point to any benefits Cheney would receive, since he gets his severance package no matter if Halliburton makes a dime or not.

 

I still love Dems bitching about Halliburton when the head of the DNC was neck deep in the Global Crossing scandal.

-=Mike

...Then again, the Dems also have no problem with bailing out the airlines, whom the wife of the Democratic leader happens to lobby for...

Nice try at deflection of the topic. What is easily seen as a conflict of interest between Bush and co. with Haliburton could be the start of something real good. Cuz if Hailburton takes it in the ass more evidence would likely arise pointing to this war to be the money making venture it is. The rats won't stay aboard if the ship is sinking. Bush would most likely be the one to take the hit the hardest should the shit hit the fan. Sure Mike, WE can't prove anything. Isn't that what this investigation is all about? So we'll find out soon enough, unless everything ends up classified. Then its back to stalemate, stalemate, stalemate here on the boards. Fun.

 

 

 

 

 

 

 

 

Trying to lump whatever the Dems do with the airlines into working something out about them as being bad.... pfft. NOBODY wants the airlines to to stop running. Like electric, water, and roads they must be maintained. Poor business practises or not. People want them to run and rely on them. Get a clue!

[NoCalMike 0]

If it makes you happy, when I was a kid, I thought the bailout of GM was absolutely absurd. Nothing guarantees inefficient business practices than the gov't bailing them out when they hit a wall.

     

 

 

If GM goes to shit, then the Japanese will move in and take over, just like they did with electronics.

Whoa I messed that response up.

 

What I meant to say was that the Japanese automobile is probably already the superior product as far as your average sedan goes. Plus American car parts are mostly made in Mexico and south america by cheap labor, so Ford and Chevy are not exactly "american" cars anymore anyway.

[sfaJack 0]

Trying to lump whatever the Dems do with the airlines into working something out about them as being bad.... pfft. NOBODY wants the airlines to to stop running. Like electric, water, and roads they must be maintained. Poor business practises or not. People want them to run and rely on them. Get a clue!

I don't know. Southwest and a couple of other discount carriers seem to have weathered the 9-11/recession storm pretty well. Maybe the problem IS with the airlines themselves and the way they run their business.

 

It might not be the worst thing in the world if a couple of them went under. I mean, there ARE other airlines in operation; it isn't as if one or two airlines shutting down would compeltely immobilize us as a nation. Bankruptcy would force the airlines to restructure and streamline their business, and, in the end, we'd probably all win because we'd have more efficient service at lower rates.

 

That's the nature of the free market economy. I don't have much sympathy for businesses that either can't or refuse to adjust to a changing market.

[Guest MikeSC]

Of course, nobody can point to any benefits Cheney would receive, since he gets his severance package no matter if Halliburton makes a dime or not.

 

I still love Dems bitching about Halliburton when the head of the DNC was neck deep in the Global Crossing scandal.

        -=Mike

...Then again, the Dems also have no problem with bailing out the airlines, whom the wife of the Democratic leader happens to lobby for...

Nice try at deflection of the topic. What is easily seen as a conflict of interest between Bush and co. with Haliburton could be the start of something real good.

Cheney left Halliburton. Halliburton is one of two companies capable of doing the work (the other being a French company, and we know how much the Dems HATE outsourcing jobs, right?)

 

This isn't deflection. It's fact. Cheney sold his his stock and options, giving a considerable chunk of money to charity.

 

You want to claim a conflict of interest --- except that you can't point to the conflict. I can FAR more easily point to a conflict in Congress bailing out the airlines than in anything Bush has done on behalf of Halliburton.

Cuz if Hailburton takes it in the ass more evidence would likely arise pointing to this war to be the money making venture it is.

Because when somebody thinks of the Iraq war, they think of pure profit margin. Hasn't been even a MILD economic drain. Gas prices have plummeted. Our deficit has disappeared. Unemployment has dropped below 2%.

 

Thanks Iraq War!

The rats won't stay aboard if the ship is sinking. Bush would most likely be the one to take the hit the hardest should the shit hit the fan.

Because the Dems love to invent conspiracy theories. See Bush = Enron theories early on, until they realized that the Dems are far more complicit with Enron than Bush.

Sure Mike, WE can't prove anything. Isn't that what this investigation is all about?

Wasn't aware that investigation = fact.

So we'll find out soon enough, unless everything ends up classified. Then its back to stalemate, stalemate, stalemate here on the boards. Fun.

You'll gripe no matter was is stated.

Trying to lump whatever the Dems do with the airlines into working something out about them as being bad.... pfft. NOBODY wants the airlines to to stop running. Like electric, water, and roads they must be maintained. Poor business practises or not. People want them to run and rely on them. Get a clue! 

Who wants the airlines to fail? I do not. However, if they have put themselves in a position where their horrible business plan will lead to their demise, that is THEIR problem. It is not MY job to bail them out from horrible decisions --- which is exactly what the gov't did.

 

Apparently you missed it, but before 9/11, people were less than happy with the airline industry.

-=Mike

[CheesalaIsGood 0]

I stopped reading at the part where he said "Gas prices have plummeted".

[Guest MikeSC]

I stopped reading at the part where he said "Gas prices have plummeted".

I forgot that sarcasm is lost on people with a lack of wit.

-=Mike

...Who was actually laying the sarcasm on kinda thick and is (not) amazed that you missed it...

[CheesalaIsGood 0]

I stopped reading at the part where he said "Gas prices have plummeted".

I forgot that sarcasm is lost on people with a lack of wit.

-=Mike

...Who was actually laying the sarcasm on kinda thick and is (not) amazed that you missed it...

You are just mad cuz I didn't have time to read the whole thing. Stop being so sensitive.

 

 

Then again, you missed the sarcasm as well so....

[CheesalaIsGood 0]

In the news today....

 

 

 

 

Army staffer: Halliburton case ‘worst abuse’

FBI widens investigation, company sees election ploy in allegations

NBC, MSNBC and news services

Updated: 6:55 p.m. ET Oct. 29, 2004

 

WASHINGTON - An Army contracting officer who led the FBI to widen its investigation of Pentagon contracts to Halliburton told NBC News that she had never seen a worse case of contracting abuse.

 

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"It was the worst abuse of the procurement and contracting system that I have seen," Bunnatine Greenhouse, the Army Corps of Engineers’ chief contracting officer, told NBC in an exclusive interview.

 

Halliburton dismissed the allegations as election politics. Sen. John Kerry's campaign has seized on the allegations to accuse the Bush administration of playing favorites. Vice President Dick Cheney headed Halliburton before taking office.

 

FBI agents this week sought permission to interview Greenhouse after she alleged that her agency unfairly awarded KBR, a Halliburton subsidiary, no-bid contracts worth billions of dollars for work in Iraq.

 

The line of inquiry expands an earlier FBI investigation into whether Halliburton overcharged taxpayers for fuel in Iraq, and it elevates to a criminal matter the election-year question of whether the Bush administration showed favoritism to Cheney’s former company.

 

Related story

 

New audit slams Halliburton work in Kuwait

 

Whistle-blower protection sought

Greenhouse’s lawyers said Thursday their client will cooperate but that she wants whistle-blower protection from Pentagon retaliation.

 

“I think it (the FBI interview request) underscores the seriousness of the misconduct, and it also demonstrates how courageous Ms. Greenhouse was for stepping forward,” said Stephen Kohn, one of her attorneys.

 

“The initiation of an FBI investigation into criminal misconduct will help restore public confidence,” Kohn said. “The Army must aggressively protect Ms. Greenhouse from the retaliation she will encounter as a result of blowing the whistle on this misconduct.”

 

FBI agents also recently began collecting documents from Army offices in Texas and elsewhere to examine how and why Halliburton, a Houston-based oil services conglomerate, got the no-bid work.

 

“The Corps is absolutely cooperating with the FBI, and it has been an ongoing effort,” said Army Corps spokeswoman Carol Sanders. “Our role is to cooperate. It’s a public contract and public funds. We’ve been providing them information for quite a while.”

 

The FBI declined to comment Thursday, but a law enforcement official, speaking on condition of anonymity, said the investigation does not involve anyone in the White House — including Cheney’s office.

 

Halliburton's response

Wendy Hall, a Halliburton spokeswoman, said the company is cooperating with various investigations, but she dismissed the latest revelation as election politics. She noted Congress’ auditing arm, the Government Accountability Office, found the company’s no-bid work in Iraq was legal.

 

“The old allegations have once again been recycled, this time one week before the election,” Hall said. “The GAO said earlier this year that the contract was properly awarded because Halliburton was the only contractor that could do the work.

 

 

More politics

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“We look forward to the end of the election, because no matter who is elected president, Halliburton is proud to serve the troops just as we have for the past 60 years for both Democrat and Republican administrations,” she said.

 

Cheney spokesman Kevin Kellems, asked if investigators had contacted the vice president or his office about the contracts, said they had not.

 

Democrats have tried to make Halliburton an election-year issue, and vice presidential candidate John Edwards quickly seized upon the latest development.

 

Sen. Frank Lautenberg, a Democrat on the Senate Governmental Affairs Committee who has been investigating Halliburton’s contracts, said his office was told the FBI recently sought documents from various government offices. The requests focused on how and why Halliburton got the Iraq contracts.

 

“This multibillion-dollar no-bid contract to Halliburton was suspicious from Day One, and now our worst suspicions are confirmed,” Lautenberg said. “The FBI doesn’t get involved unless there are possible criminal violations.”

 

E-mail ties Cheney office to contract

In a formal whistle-blower complaint filed last week, Greenhouse alleged the award of contracts without competition to KBR puts at risk “the integrity of the federal contracting program as it relates to a major defense contractor.” The contracts were to restore Iraq’s oil industry.

 

Among the evidence cited in the complaint was an internal 2003 Pentagon e-mail that says the Iraq contract “has been coordinated” with Cheney’s White House office.

 

The vice president, who continues to receive deferred compensation from when he was Halliburton’s chief executive in the late 1990s, has steadfastly maintained he has played no role in the selection of his former company for federal business.

 

The Army last week referred Greenhouse’s allegations to the Defense Department’s inspector general. Documents show FBI agents from Quad Cities, Ill., asked Tuesday to interview Greenhouse.

 

Greenhouse alleged in her complaint that after her superiors signed off on the Iraq business in February 2003, a month before the war began, and returned it for her necessary approval, she specifically asked why the work was being extended for several years.

 

Beside her signature, Greenhouse wrote: “I caution that extending this sole-source effort beyond a one-year period could convey an invalid perception that there is not strong intent for a limited competition,” the complaint said.

 

The oil restoration work was given to KBR without competitive bidding through 10 separate work assignments called “task orders.” The orders were issued under an existing contract between Halliburton and the U.S. military that was awarded competitively in December 2001.

 

While the Corps was authorized to spend up to $7 billion for the oil restoration work, the actual cost so far has been $2.5 billion. Halliburton is still working on the oil facilities, but it is now operating under a new, competitively awarded contract.

The Associated Press contributed to this report.

 

 

 

 

 

Criminals???? Oh my!

[Guest MikeSC]

Jesus fucking Christ.

 

Cite your source, if nothing else.

 

And find shorter shitty columns, please.

-=Mike

[Guest CronoT]

Jesus fucking Christ.

 

Cite your source, if nothing else.

 

And find shorter shitty columns, please.

-=Mike

What's good for the goose is good for the gander. If you want shorter columns, post shorter ones yourself.