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December 2, 2005

The Halliburton money pit

Percentages always were tricky to calculate:

In a letter to the chairman of the House Government Reform Committee, Rep. Henry Waxman (D-CA) requested hearings on why the Army Corps of Engineers paid profits and bonuses to Halliburton for $124 million in costs that were deemed unreasonable and unsupported by the Pentagon’s own auditors.
The disputed costs were paid to Halliburton’s KBR subsidiary under its no-bid Iraqi oil contract, known as Restore Iraqi Oil (RIO), awarded in March 2003.
On average, between 60 percent and 70 percent of costs challenged by Pentagon auditors are ultimately denied to contractors by the contracting authority. But, Waxman said, under the RIO contract, only 27 percent of the costs challenged by auditors was ultimately denied to Halliburton by the Corps of Engineers.
“The [Bush] administration has offered no explanation for this decision to pay three-quarters of Halliburton’s challenged costs,” the congressman said.

He needs an explanation?

Posted by Stephen at 2:55 PM in Business | Politics | War | Permalink | TrackBack (0)

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