The Evil Genius Posted January 23, 2004 Share Posted January 23, 2004 Halliburton Admits Kickback Allegations By MATT KELLEY, Associated Press Writer WASHINGTON - Halliburton has fired employees who allegedly took kickbacks from a Kuwaiti subcontractor helping to supply U.S. troops in Iraq (news - web sites), the company said. Spokeswoman Wendy Hall said Friday the company reported the "irregularities" to Pentagon (news - web sites) auditors and criminal investigators. "We found it quickly, and we immediately reported it," Hall said in a statement. "We do not tolerate this kind of behavior by anyone at any level in any Halliburton company." The Wall Street Journal reported Friday that two employees of Halliburton subsidiary KBR accepted up to $6 million in kickbacks from the unnamed Kuwaiti firm. Hall said the company could not discuss specifics of the charges. The kickback allegations involve KBR's contract to supply U.S. Army troops in Iraq, not its separate contract to rebuild Iraqi oil facilities and deliver gasoline to civilians. Pentagon auditors are seeking a criminal probe into findings that KBR and Kuwaiti firm Altanmia Marketing Co. overcharged by $61 million for fuel deliveries. Halliburton, Vice President Dick Cheney (news - web sites)'s former company, has denied overcharging on that contract. The Pentagon's inspector general's office, which is investigating both allegations, declined comment Friday. Friday's disclosure is the first admission by Halliburton that its employees were involved in possible corruption involving Iraq contracts. Halliburton disclosed last year that another KBR employee paid more than $2 million in bribes to a Nigerian official to get favorable tax treatment. A French judge investigating a KBR joint venture in Nigeria with a French firm has reportedly warned that Cheney, who headed Halliburton from 1995 until 2000, could be subject to criminal charges in France. Cheney has denied any wrongdoing. Democrats on Friday renewed their criticism of Halliburton and their demands for further investigations into the company's contracts. "All of Halliburton's contracts with the government need to be terminated," said Sen. Frank Lautenberg, D-N.J. "This is a fatal blow to the company's credibility and the administration's ability to defend these contracts." Critics have cited Halliburton's contracts as evidence of Bush administration favoritism toward corporate friends. White House and Pentagon officials say the Defense Department's contract decisions are not affected by political concerns. Link to comment Share on other sites More sharing options...
Funkyalligator Posted January 23, 2004 Share Posted January 23, 2004 So this is another cover-up of coruption with companies that have close ties to the administration...hmmmmmmmmm..... Link to comment Share on other sites More sharing options...
Kilmer17 Posted January 23, 2004 Share Posted January 23, 2004 Im sure they were doing it under Bush and Cheneys direct orders. Link to comment Share on other sites More sharing options...
gbear Posted January 23, 2004 Share Posted January 23, 2004 I guess the only question is if they were fired before or after the investigations got to them. Seriously though, firing them and turning over the info is the only right thing the company could do. Since they did it, I have a hard time finding fault with them. Corruption from employees who thought they could get away with millions...who here is hsocked these things can happen? Link to comment Share on other sites More sharing options...
Funkyalligator Posted January 23, 2004 Share Posted January 23, 2004 I'm not shocked at all...I'm not shocked that people that associate with Bush and Cheney are corrupt...look at ENRON...which everybody seems to have forgotten about...don't worry Kilmer17 I also think democrats are pretty dang corrupt...look at Clinton selling pardons...etc. I for once would like to get a real peoples politician in the white house instead of someone who will sell their influence to the highest bidder or are so dumb that they give it away to people that hang around them. Link to comment Share on other sites More sharing options...
Kilmer17 Posted January 23, 2004 Share Posted January 23, 2004 funky. Enron flourished under Clintons watch. It was Bush that reigned them in and pulled the plug. As for Haliburton, Clinton awarded them contracts as well. It's not political. It's the simple fact that they are the best and in some cases ONLY company for these jobs. The fact that a couple of guys who worked there are thiefs doesnt reflect on the Administration. Link to comment Share on other sites More sharing options...
Funkyalligator Posted January 23, 2004 Share Posted January 23, 2004 Really....ENRON was Clinton's fault...hmmmmmm Link to comment Share on other sites More sharing options...
Kilmer17 Posted January 23, 2004 Share Posted January 23, 2004 Not his fault. Not Bush's fault. The fault lies with the executives and them alone. But the facts are the facts. Clinton didn't expose them. He didnt stop them. THat happened under Bush. Link to comment Share on other sites More sharing options...
Funkyalligator Posted January 23, 2004 Share Posted January 23, 2004 Bush...reigned them in....you've got to be kidding me...he didn't do sh*t...espeically with all the money that was funneled into his campaign...saying Bush reigned them in is like saying Jefferson Davis freed the slaves....hhahahahahahahaha Link to comment Share on other sites More sharing options...
Kilmer17 Posted January 23, 2004 Share Posted January 23, 2004 Which Justice Dept blew the whistle on them? Clinton? Or Bush? Link to comment Share on other sites More sharing options...
webnarc Posted January 23, 2004 Share Posted January 23, 2004 Originally posted by gbear I guess the only question is if they were fired before or after the investigations got to them. Agree 100%; it's fun to bash the heck out of Bush and Cheney, and blame everything on the economic climate that Clinton administration fostered, but pinning any of this on the present or past administrations is going to take years. Taking the fall for crime is not something that powerful people like to do. Link to comment Share on other sites More sharing options...
Art Posted January 23, 2004 Share Posted January 23, 2004 Wait. Am I reading this correctly? The company found some employees did something potentially illegal and fired them and reported the activity to the government and in this thread we're using it as evidence that the company did something wrong? Astonishing. Link to comment Share on other sites More sharing options...
National Defense Posted January 23, 2004 Share Posted January 23, 2004 kilmer--you are tripping. the market pulled the plug on enron, not Bush guys. infact, bush officials were actively lobbying on enron's behalf to help them secure additional credit/payments from certain foreign investments (ie india dahbol power plant). the couldn't get it done, and the stock dropped to under a dime. get your facts straight man. Art--the issue is that Halliburton received its contract under dubious circumstances (ie no bidding, large $44 millionpayoff to mr cheney on his exit) and this isolated instance is probably the tip of the iceburg in terms of financial irregularities. the thread should really be titled crony capitalism. Link to comment Share on other sites More sharing options...
Art Posted January 23, 2004 Share Posted January 23, 2004 ND, Halliburton received no-bid contracts under Clinton too. Honest. In emergency situations the companies that do this sort of work and have the immediate infrastructure to come into such situations rapidly get those jobs. Always have. Always will. The Army Corp of Engineers, which hired Halliburton said nothing was done wrong. Did Cheney also get Halliburton's no-bid contracts under Clinton as you seem to imply he arranged as Vice President? Link to comment Share on other sites More sharing options...
Kilmer17 Posted January 23, 2004 Share Posted January 23, 2004 The question is simple. Did Clinton do anything to halt Enrons illegal activities? No. I know it pains lefties to admit this, but if Clinton's Justice Dept done their job, thousands wouldnt have lost their ass in that mess. BTW, Ask Lieberman how much Enron donated to his campaigns over the years. Link to comment Share on other sites More sharing options...
Art Posted January 23, 2004 Share Posted January 23, 2004 Oh, and ND, the corporate illegal activities conducted at Enron, Worldcom, Global Crossing, etc., etc., etc., were done under Clinton's watch. Bush's SEC and Justice department have been left to uncover these scandals and prosecute where there is a need. Remember now, the CEO of Enron met with one President in the White House and it wasn't Bush. Link to comment Share on other sites More sharing options...
luckydevil Posted January 23, 2004 Share Posted January 23, 2004 Our government under Clinton kept Enron alive Enron recevied over 600 million in corporate welfare and government subsidiaries. Link to comment Share on other sites More sharing options...
redman Posted January 23, 2004 Share Posted January 23, 2004 Originally posted by gbear I guess the only question is if they were fired before or after the investigations got to them. Seriously though, firing them and turning over the info is the only right thing the company could do. Since they did it, I have a hard time finding fault with them. Corruption from employees who thought they could get away with millions...who here is hsocked these things can happen? You and I agree here. As far as I'm concerned, throw the book at the employees and keep your eyes on Halliburton to make sure this isn't part of their firm "culture". Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 23, 2004 Author Share Posted January 23, 2004 Halliburton's improprieties (or should I say alleged improprieties) have been discussed for awhile now. I guess we will just have to wait andl see what surfaces. Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 24, 2004 Author Share Posted January 24, 2004 Interesting, from a company that did nothing wrong... Halliburton to Pay $6.3M in Kickback Case By MATT KELLEY, Associated Press Writer WASHINGTON - Halliburton will pay the Pentagon (news - web sites) $6.3 million for possible overcharges by a subcontractor that is accused of giving kickbacks to supply U.S. soldiers in Iraq (news - web sites), a spokeswoman said Friday in new trouble for Vice President Dick Cheney (news - web sites)'s former company. "We will bear the cost of the overcharge — not the federal government," said Wendy Hall. Halliburton fired the employees involved and notified Defense Department investigators when it discovered one or two workers may have gotten improper payments from the Kuwaiti firm, Hall said. She said the company was paying the $6.3 million to the Army Materiel Command to cover any possible overcharges while the Pentagon investigates. "We found it quickly, and we immediately reported it," Hall said. "We do not tolerate this kind of behavior by anyone at any level in any Halliburton company." The Pentagon already has in progress a criminal inquiry into possible overcharging involving another Halliburton contract: the company's deal to supply gasoline to Iraqi civilians. Democrats have criticized the contracts and demanded further investigations; the company has denied wrongdoing. Meanwhile, Halliburton has begun an advertising campaign to improve its image. A television spot running on CNN says Halliburton supplies hot meals, laundry and telephone links for soldiers in Iraq. The ad shows a man in desert camouflage holding a phone, his lip trembling, and shouting, "It's a girl!" "Halliburton. Proud to serve our troops," an announcer says. "Halliburton gets beaten up every day by people who don't have the facts. We can stand the heat, ... but we will tell our story," Hall said. "Our employees are doing great work in Iraq making life better for our troops and for the Iraqi people." In trading on the New York Stock Exchange (news - web sites), Halliburton shares were up 69 cents, or 2.4 percent, to close at $28.92. In the latest investigation, Halliburton auditors found a $6 million overcharge by a Kuwaiti subcontractor in its Army supply contract, Hall said Friday. Part of that money may have been paid as kickbacks to one or two Halliburton workers, she said. Hall did not identify the workers or the Kuwaiti subcontractor. She also did not say how large the alleged kickbacks were. White House press secretary Scott McClellan said Friday it was up to the Pentagon to determine if wrongdoing occurred. "From my understanding, I think that's all being looked into by the Department of Defense (news - web sites), and we expect the Department of Defense to get to the bottom of it," he said. Both investigations involve Halliburton subsidiary KBR, which has a contract to supply the Army with food service, mail and other amenities and a separate one to rebuild Iraqi oil facilities. Pentagon auditors found KBR may have overcharged by $61 million for deliveries of gasoline from Kuwait to Iraq from May through September. KBR's Kuwaiti supplier, the Altanmia Marketing Co., charged more than twice what suppliers in Turkey did. Both Halliburton and the Army Corps of Engineers, which oversees the fuel contract, say the higher price was justified by the danger faced by fuel convoys and the need to head off Iraqi anger over gasoline shortages. The deal to deliver gasoline to Iraqis is part of that second contract, while the alleged kickbacks were for the Army supply contract. The kickback probe is the first admission by Halliburton that its employees may have been involved in corruption involving contracts in Iraq. The company disclosed last year that another KBR employee paid more than $2 million in bribes to a Nigerian official to get favorable tax treatment. A French judge investigating a KBR joint venture in Nigeria with a French firm has reportedly warned that Cheney, who headed Halliburton from 1995 until 2000, could be subject to criminal charges in France. Cheney has denied wrongdoing. Democrats renewed on Friday their criticism of Halliburton and their demands for further investigations into the company's contracts. "All of Halliburton's contracts with the government need to be terminated," said Sen. Frank Lautenberg, D-N.J. "This is a fatal blow to the company's credibility and the administration's ability to defend these contracts." Critics have cited Halliburton's contracts as evidence of Bush administration favoritism toward corporate friends. White House and Pentagon officials say the Defense Department's contract decisions are not affected by political concerns. White House spokesman McClellan dismissed Democratic suggestions that the controversy surrounding Halliburton casts a cloud over the Bush administration's reconstruction of Iraq. "There's obviously a lot of election-year politicking going on," he said. Link to comment Share on other sites More sharing options...
Art Posted January 24, 2004 Share Posted January 24, 2004 Again, TEG, looks like a great thing this company has done. Found something it didn't like, took immediate action and shoulder the cost of the problem. Thanks for bringing these articles to our attention as great examples of corporate citizenship that is exemplary. Link to comment Share on other sites More sharing options...
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