Halliburton Military - The contract was awarded without submission for public bids or congressional notification. In their response to congressional inquiries, Army officials said they determined that extinguishing oil fires fell under the range of services provided under LOGCAP, meaning that KBR could deploy quickly and without additional security clearances.
They also said that the contract's classified status prevented open bidding. The contract was later declassified after the Center for Public Integrity filed a lawsuit under the Freedom of Information Act. Halliburton announced on March 12, 2007, that "it would open a corporate headquarters in the United Arab Emirates city of Dubai and move its chairman and chief executive, David J. Lesar, there."
Halliburton Military
[3] "Halliburton will remain a US company subject to US laws, but Dubai has no extradition agreement with the United States, meaning that Mr. Lesar could not be compelled to return to the US to testify, stand trial or serve any sentence related
Damage Control For Iraq For Sale
to any Halliburton activities under investigation." "Confidential U.N. documents show that Halliburton's affiliates have had broad, and sometimes controversial, dealings with the Iraqi regime. The firms traded with Baghdad for more than a year under Cheney, signing nearly $30 million in contracts before he sold Halliburton's 49 percent stake in Ingersoll
Dresser Pump Co. in December 1999 and its 51 percent interest in Dresser Rand to Ingersoll-Rand in February 2000, according to U.N. records." [18] In January 2004, the Army Corps awarded a contract with a potential value of $1.5 billion to KBR.
The contract is for a full range of engineering services in the U.S. Central Command's area of operations, which includes Iraq and Afghanistan. The contract has a $500 million ceiling for the first year and four one-year options, each with an annual ceiling of $250 million.
Halliburton's Landmark Graphics supplied information systems and software to help companies find and produce oil and gas. The Engineering and Construction Group was restructured during the first quarter of 2001 and the engineering, construction, fabrication and project management capabilities were made part of Halliburton Kellogg Brown & Root (KBR).
Anatomy Of $ Billion
Halliburton acquired PGS Data Management, a division of Petroleum Geo-Services ASA, in March 2001 and in November 2001, and it also purchased Magic Earth, Inc., a 3-D visualization and interpretation technology company. In 2002, Halliburton sold its 50% interest in Bredero-Shaw and agreed to sell its mono pumping business.
Also in 2002, Halliburton sold its 50% interest in European Marine Contractors Ltd.[13] In October 2006, filmmaker Robert Greenwald and his production studio, "Brave New Films" (BNF), released a new documentary that was highly critical of Halliburton's work in Iraq.
The movie was titled, "Iraq for Sale: The War Profiteers." Cheney was the son of Richard Herbert Cheney, a soil-conservation agent, and Marjorie Lauraine Dickey Cheney. He was born in Nebraska and grew up in Casper, Wyoming.
He entered Yale University in 1959 but failed to graduate. Cheney earned bachelor's (1965) and master's (1966) degrees in political science from the University of Wyoming and was a doctoral candidate at the University of Wisconsin.
Subsidiary Kbr Largest Receiver Of Non-Competitive Defense Contracts
Robert C. Muchmore Jr., Halliburton's former controller, also agreed to a $50,000 fine by the SEC while a suit was filed against Gary V. Morris, the company's former chief financial officer. Vice President Cheney, Halliburton's chief executive officer during the period when these statements were released, provided testimony to the SEC but was not investigated.
Halliburton and Muchmore neither admit nor deny the SEC's findings. In 1968, Cheney moved to Washington, D.C., to serve as a congressional fellow, and, beginning in 1969, he worked in the administration of Pres. Richard Nixon.
After leaving government service briefly in 1973, he became a deputy assistant to Pres. Gerald Ford in 1974 and his chief of staff from 1975 to 1977. In 1978 he was elected from Wyoming to the first of six terms in the United States House of Representatives, where he rose to become the Republican whip.
In the House, Cheney took conservative positions on abortion, gun control, and environmental regulation, among other issues. In 1978 he suffered the first of several mild heart attacks, and he underwent quadruple-bypass surgery in 1988. As part of its continuing Windfalls of War project, the Center for Public Integrity has been compiling information on contracts awarded by the U.S.
A Company Under Investigation
government for support in Operation Enduring Freedom and Operation Iraqi Freedom. The Center has compiled its list of contractors and contract awards through information obtained from 95 requests and appeals filed under the Freedom of Information Act or through official government and company sources.
"Even without the Cheney conflicts of interest, serious doubts remain about whether a company with a record like Halliburton's should even be eligible to receive government contracts in the first place. This, after all, is a company that has been accused of cost overruns,
tax avoidance, and cooking the books and has a history of doing business in countries like Iraq, Iran and Libya." [17] "Tax Havens: Under Cheney's tenure, the number of Halliburton subsidiaries in offshore tax havens increased from 9 to 44. Meanwhile, Halliburton went from paying $302 million in company taxes in 1998 to getting an $85 million tax refund in 1999."
When Erle Halliburton died in 1957, "the Company had 201 offices in 22 states and 20 foreign countries. Five years later, Halliburton acquired Brown & Root following Herman Brown's death. At the time, Brown & Root was renowned as a road construction company,
Halliburton And Fracking
general contractor and builder of the world's first offshore platform in 1947." In February 2007, "Congress was told that $2.7 billion paid to Halliburton and its subsidiaries and subcontractors for work done in Iraq was either excessive or unsupported," Strieber wrote.
"Another upcoming investigation that affects Halliburton is the current scandal at Walter Reed Army Medical Center. The Washington Post reported that the Army agreed to privatize the operation of Walter Reed by awarding a $120 million contract to IAP Worldwide Services, a contractor with connections to KBR
, a Halliburton subsidiary." In Iraq, Halliburton subsidiary Kellogg Brown & Root has been awarded five contracts worth at least $10.8 billion, including more than $5.6 billion under the U.S. Army's Logistics Civil Augmentation Program contract, an omnibus contract that allows the Army to call on KBR for support in all of its field operations.
When the Army needs a service performed, it issues a "task order," which lays out specific work requirements under the contract. In June 2009, U.S. Representatives Diana DeGette, John Salazar and Maurice Hinchey and Senators Robert P. Casey Jr.
Why Did This Happen?
and Chuck Schumer introduced the Fracking Responsibility and Awareness of Chemicals Act (FRAC ACT).[5] The proposal is aimed at closing the 'Halliburton loophole' and requiring the oil and gas industry to disclose the chemicals used in drilling projects which can contaminate ground water and drinking water.
Under the LOGCAP contract, in November 2002 the Army Corps of Engineers tasked KBR to develop a contingency plan for extinguishing oil well fires in Iraq. Not surprisingly, on March 24, 2003, the Army Corps announced publicly that KBR had been awarded a contract to restore oil-infrastructure in Iraq, potentially worth $7 billion.
The contract KBR received—contract DACA63-03-D-0005—would eventually include 10 distinct task orders. KBR did not come close to reaching the contract ceiling, billing just over $2.5 billion. No additional task orders are being added to the contract, according to the Army Corps.
(For more information on contract DACA63-03-D-0005, see Inside a War-Time Contract.) On August 17, Halliburton said that the Army Materiel Command would begin to withhold 15 percent of payments on future invoices under the LOGCAP III contract.
Hazardous Substances Drinkable Water And Hydrofracking
A day later the Army reversed its decision, for unknown reasons. In the past, extensions to Halliburton had been given because, an Army spokeswoman said, neither the government nor the company had the necessary staff to review the increased number of bills.
Kellogg Brown and Root (KBR), formed as an offshoot of parent company Halliburton in 2007, is the largest recipient of defense contract funding as of March, 2013. KBR privately provides military support services which were once operated by the U.S.
military. Over the past ten years, KBR has received $39.5 billion in Iraq-related contracts, much of which came without having to bid against competing firms. A $568 million contract to provide housing and food services for soldiers led to a Justice Department lawsuit filed in 2010 by whistle-blowers for never being put up to bid by the Army and under suspicion of kickbacks.
As stated by Business Insider:[1] Halliburton, where Vice President Richard Cheney served as CEO from 1995 to 2000, has come under increased scrutiny because of allegations of overcharging on food service and fuel distribution contracts, poor management and close ties to the administration.
The Halliburton Loophole For Methane Gas Drilling
Only weeks before Halliburton made headlines by announcing it was pulling out of Iran ... the Texas-based oil services firm quietly signed a major new business deal to help develop Tehran's natural gas fields," Newsweek's Michael Isikoff and Mark Hosenball wrote in February 2005.
"But overlooked in most of the press coverage of the announcement was that [Halliburton CEO David] Lesar's statement contained enough wiggle room to allow Halliburton to continue participating in the new South Pars project. ... Lesar's announcement was little more than 'PR damage control,' said one congressional investigator who has closely followed Halliburton's dealings.
"They're still acting like the sanctions law are a big joke," the investigator added."[19] In 2011, Halliburton posted record revenues of $25 billion, based almost entirely on the growth of its U.S. shale explorations, and it is on pace to top that in 2012, with first-quarter revenue of $6.9 billion.
According to the National Journal, Halliburton's unofficial company motto has become "Frac the Future." Oil and gas companies hire energy service providers like Halliburton to extract fossil fuels, including cement casing and fracking.[11] At the time, the Halliburton executive committee included CEO Dick Cheney and Donald C. Vaughn as vice chairman.
Accusations Of Gang Rape
Five members of the Dresser board of directors, including William E. Bradford, Lawrence S. Eagleburger, Ray L. Hunt, J. Landis Martin and Jay A. Precourt, joined the Halliburton Board of Directors.[11] On March 18, 2010, the Environmental Protection Agency announced that it would lead a $1.9 million for this comprehensive, peer-reviewed study on the impacts hydrofracking would have on water quality and public health.[7]
Despite the study, Rep. Diana DeGette (D-CO) has expressed that it is crucial to continue the push forward for the passing of the FRAC Act[8] Joel Brinkley, wrote in the February 13, 2004, New York Times that "As the accusations and investigations of the Halliburton Company's federal contracts in Iraq expand in size and number, Democrats say they will use the company's ties to the Bush administration as a campaign
issue, and Halliburton is responding with television advertisements implying that it is being unfairly singled out." On Aug. 3, 2004, the Securities and Exchange Commission fined Halliburton $7.5 million for failure to disclose a change in its accounting practice.
This change in accounting for cost overruns, while not out of the norm, means that public filings by the company were misleading in 1998 and 1999, according to the SEC. For example, in the second quarter of 1998 Halliburton used the new accounting practices without disclosing them and reported a pre-tax income of $228.7 million.
Iraq Reconstruction Corruption
If the old accounting practices had been used, the pre-tax income would have been $183.3 million. "Although the announcement of the new Dubai arrangement took many by surprise, Halliburton said that the move was part of a strategy announced in mid-2006 to concentrate its efforts in the Middle East and surrounding areas, where state-owned oil companies represent a growing
source of business. [6] Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our terms of Service and Cookie Policy. Although figures are not yet available for 2004, government revenue is bound to increase as a result of the contracts the company has won for work in postwar Afghanistan and Iraq, which so far potentially totals $11.4 billion.
Some of that work was actually awarded earlier; many of the company's contracts extend for multiple years. After leaving office in 2009, Cheney remained in the public eye, often speaking on political matters. In 2010 he suffered his fifth heart attack.
Two years later he had a heart transplant. His autobiography, In My Time: A Personal and Political Memoir (cowritten with his daughter Liz Cheney), was published in 2011. Cheney also wrote, with his heart surgeon, Heart: An American Medical Odyssey (2013) and, with Liz Cheney,
Exceptional: Why the World Needs a Powerful America (2015). In June 2003, the Army Corps announced that it would replace KBR's oil-infrastructure contract with two publicly bid contracts and in January 2004, the Army Corps awarded a contract that has a maximum value of $1.2 billion to KBR.
The company is to continue its work to repair Iraq's oil infrastructure in southern Iraq. The contract for the northern region, with a maximum value of $800 million, went to Parsons. After George W. Bush's primary victories secured his nomination for the presidency of the United States, Cheney was appointed to head Bush's vice presidential search committee.
Few expected that Cheney himself would eventually become the Republican vice presidential candidate. Two weeks after election day, Cheney suffered another mild heart attack, although he quickly resumed his duties as leader of Bush's presidential transition team.
The Center for Cooperative Research says "Manipulating U.S. foreign policy isn't the only strategy in Halliburton¹s repertoire of means to securing profits. Another method that has apparently proven extremely successful is doing business with the government and bidding on contracts financed by U.S. dominated bilateral and
multilateral aid agencies. Although Dick Cheney had once lashed out at Joseph I. Lieberman saying that his success at Halliburton 'had absolutely nothing to do with' the government, the real facts have shown otherwise." Cooperative Research calls this practice corporate welfare.
The organization gives a detailed listing of Halliburton's business dealings in this regard. In 1919, Erle P. Halliburton established the New Method Oil Well Cementing Company in Oklahoma. At the same time, brothers George and Herman Brown partnered with their brother-in-law, Dan Root, to found Brown & Root in Texas.
In late September, O'Dwyer's reported that "Halliburton's KBR engineering and services unit has launched a strike against the documentary. ... Halliburton posted a statement on its website, claiming the movie is 'nothing more than a theory in search of a conspiracy'
.'" [20]
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