bigpoppanils Posted December 13 Report Share Posted December 13 Bush: Halliburton Must Pay for Overcharge December 13, 2003 02:04 AM EST WASHINGTON - As Democrats demand further investigations of Vice President Dick Cheney's former company, President Bush says Halliburton Co. should repay the government if it overcharged for fuel in Iraq. "If there's an overcharge, like we think there is, we expect that money to be repaid," the president told reporters Friday when asked about the contract controversy. Pentagon auditors say Houston-based Halliburton charged up to $61 million too much for delivering gasoline to Iraqi citizens under a no-bid contract to rebuild Iraq's dilapidated oil industry. The company denies overcharging. Meanwhile, an Army spokesman disclosed that companies from France, Germany, Russia and Canada won't be eligible to replace Halliburton as the recipient of the oil reconstruction contract. The Army Corps of Engineers is reviewing bids and hopes to decide this month who will get the oil reconstruction deals worth up to $800 million in northern Iraq and $1.2 billion in the south. The decision means that an additional $2 billion in contracts in Iraq, not disclosed before, would be forbidden to countries that opposed the war, along with the $18.6 billion in Iraq work the administration declared off-limits earlier this week. The countries that have been left out see the rules as payback, but Bush says limiting contracts to countries that sent troops and money to Iraq makes sense and will encourage more nations to join the U.S.-led coalition. Democrats have joined the fray, saying the president is needlessly alienating allies and rewarding political supporters. Cheney headed Halliburton from 1995 until he became Bush's running mate in 2000, and other executives from the company gave generously to the Bush campaign. "George W. Bush is preventing entire nations from bidding on contracts in Iraq so his campaign contributors can continue to overcharge the American taxpayers," Democratic presidential candidate Howard Dean said Friday while campaigning in Iowa. The political impact is unclear. As long ago as last May, in a CBS-New York Times poll, about half the respondents said they thought the administration gave contracts to companies because they had close Republican ties. Pentagon officials say they gave Halliburton the prewar oil reconstruction contract because it was essential to start rebuilding quickly after the U.S.-led invasion. Halliburton already had a competitively bid contract to provide short-notice logistical help for the Army. Separately under that contract, Halliburton has been paid about $3 billion for supporting the military with cafeterias, mail delivery and other services. The oil contract started as a relatively small order for fighting oil well fires and has grown into the largest reconstruction contract in Iraq. Halliburton has received more than $2.2 billion so far on that contract. Together, the 11 other Iraq reconstruction projects awarded to other companies have paid out $1.7 billion. The largest, to construction conglomerate Bechtel Corp. for rebuilding infrastructure such as highways and bridges, has delivered more than $1 billion so far. The largest part of Halliburton's oil reconstruction contract is providing gasoline and other fuel to Iraqis while the country's oil industry is being rebuilt. A Pentagon audit found Halliburton was charging $1.09 more per gallon for gasoline it trucked into Iraq from Kuwait than for the same fuel imported from Turkey. Pentagon officials said Thursday that Halliburton's Kuwaiti subcontractor apparently charged too much for the gasoline. Halliburton's president, Dave Lesar, said the Kuwaiti firm was the only one that met the contract's requirements. Lesar said Halliburton earned "a few cents on the dollar" for delivering the fuel. Under the contract, Halliburton gets a guaranteed profit calculated as part of the company's costs. In other words, the higher the costs, the more money for Halliburton. Halliburton is guaranteed a profit equal to at least 2 percent of its costs. Depending on performance, Halliburton can earn a profit of up to 7 percent of costs. If the subcontractor were to overcharge by $61 million, Halliburton would be guaranteed $1.2 million in profit from that amount. If Halliburton earned the entire 7 percent, its profit on the overcharge would be about $4.3 million. The Army Corps of Engineers is reviewing bids for the $2 billion in contracts that will replace Halliburton's no-bid award. At least 69 companies - including Halliburton - were sent solicitations, according to a Corps Web site. --------------------------------------------------------------------------------Copyright 2003 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Quote Link to comment Share on other sites More sharing options...
jamiroguy1 Posted December 13 Report Share Posted December 13 Who needs bidding for contracts. Quote Link to comment Share on other sites More sharing options...
igloo Posted December 13 Report Share Posted December 13 Something does not seem right about this whole thing. WHy would Haliburton engage in something that would have been so easily exposed, and that have huge ramifications?I think all need to reserve judgement until all the information is presented (if that ever happens)..And Howard Dean's advisors need to control his mouth Quote Link to comment Share on other sites More sharing options...
jamiroguy1 Posted December 13 Report Share Posted December 13 Originally posted by igloo Something does not seem right about this whole thing. WHy would Haliburton engage in something that would have been so easily exposed, and that have huge ramifications?I think all need to reserve judgement until all the information is presented (if that ever happens)..And Howard Dean's advisors need to control his mouth The concern people have had since they got the contracts through no bidding was that this very thing would happend. That's why everyone is all over this.On a related note:(after)A KBR sign adorns the Halliburton corporate headquarters near downtown Houston, December 12, 2003. The company has removed the Halliburton name from the building and renamed it KBR (Kellogg, Brown and Root) amid controversy that surrounds the company's White House links and overbilling the government for military contracts in Iraq (news - web sites). REUTERS/Tim Johnson(before) Quote Link to comment Share on other sites More sharing options...
igloo Posted December 13 Report Share Posted December 13 Originally posted by jamiroguy1 The concern people have had since they got the contracts through no bidding was that this very thing would happend. That's why everyone is all over this.] Nah....most people were simply fixated on Cheney-Haliburton.Like I said, there is something missing. Quote Link to comment Share on other sites More sharing options...
marksimons Posted December 13 Report Share Posted December 13 accountability?democracy?shame?I think they got caught 'cause they're greedy bastards.just look at enron.these guys don't actually give a flying fuck. Quote Link to comment Share on other sites More sharing options...
jamiroguy1 Posted December 14 Report Share Posted December 14 Originally posted by marksimons accountability?democracy?shame?I think they got caught 'cause they're greedy bastards.just look at enron.these guys don't actually give a flying fuck. "They"?? The pentagon is doing the investigation. They are the most overcharging part our gov't. It wasn't like it was some watchdog group that caught them so let's see how this investigation plays out. Quote Link to comment Share on other sites More sharing options...
normalnoises Posted December 14 Report Share Posted December 14 Originally posted by igloo And Howard Dean's advisors need to control his mouth Maybe you should take your own advice idiot. Quote Link to comment Share on other sites More sharing options...
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