Halliburton OVERCHARGING?!? Can NO ONE be trusted?!

[mburbank]

Jeeze, next thing you know Bechtel will be price gouging! It's just a darn shame we didn't realize the risks of no bid contracts!


Halliburton May Have Overcharged Millions

By MATT KELLEY, Associated Press Writer

WASHINGTON - A Pentagon audit has found Vice President Dick Cheney 's former company may have overcharged the Army by $1.09 per gallon for nearly 57 million gallons of gasoline delivered to citizens in Iraq , senior defense officials say.

Auditors found potential overcharges of up to $61 million for gasoline that a Halliburton subsidiary delivered as part of its no-bid contract to help rebuild Iraq's oil industry.

But the company apparently didn't profit from the discrepancy, according to officials who briefed reporters Thursday on condition of anonymity. The problem, the officials said, was that Halliburton may have paid a Kuwaiti subcontractor too much for the gasoline in the first place.

A Halliburton statement released Thursday said the Kuwaiti company was the only one that met the Army Corps of Engineers' specifications. "Halliburton only makes a few cents on the dollar when fuel is delivered from Kuwait to Iraq," the statement read.

The Pentagon officials said Halliburton's Kellogg, Brown & Root subsidiary also submitted a proposal for cafeteria services that was $67 million too high. The officials said the Pentagon rejected it.

The defense officials said they had no reason to believe the problems were anything other than "stupid mistakes" by Halliburton. They said the company and the Pentagon were negotiating a possible settlement of the matter, which could include repayment by Halliburton.

In the statement Thursday, Halliburton chairman, president and CEO Dave Lesar said, "We welcome a thorough review of any and all of our government contracts."

News of the problems came as President Bush worked to justify his decision to limit $18.6 billion in Iraq reconstruction contracts to companies from the United States or countries that supported the war. The move angered governments whose firms were cut out of the bidding process, including Canada, France, Germany and Russia.

Many Democrats also have criticized the Halliburton contracts, suggesting they were a political payoff for a company with strong ties to the GOP and whose executives gave generously to the Bush campaign.

Sen. Frank Lautenberg, D-N.J., called Thursday for Senate hearings on the Pentagon's findings.

"I have long been troubled by the continued growth of the Pentagon's no-bid contract with Halliburton, and the delay in the Pentagon's promise to compete this contract competitively," Lautenberg wrote to Senate Government Affairs Committee Chairwoman Susan Collins, R-Maine.

Cheney and Pentagon officials deny any political motive for awarding the no-bid contracts to KBR, which has a long-standing relationship with the military as a major Pentagon contractor.

Routine audits by the Defense Contract Audit Agency uncovered the problems.

Pentagon officials said they were concerned about problems with KBR's contracts, which were awarded without competitive bidding for up to $15.6 billion for rebuilding Iraq's oil infrastructure and assisting U.S. troops there. About $5 billion has been spent or is obligated to be spent on those contracts so far.

"Contractor improprieties and/or contract mischarging on department contracts will neither be condoned nor allowed to continue," said Dov Zakheim, the Pentagon's budget chief.

The defense officials, who are involved in the audit of the contracts, said the Pentagon was negotiating with KBR over how to resolve the fuel-pricing issue. They declined to name the Kuwaiti subcontractor that provided the fuel, saying that company may not have been notified of the inquiry's findings.

The possible overcharging involved 56.6 million gallons of gasoline KBR supplied in Iraq from the end of the war until Sept. 30, the Pentagon officials said. The officials said KBR was charging $2.27 a gallon for gasoline while another contract for gas delivered from Turkey was for $1.18 a gallon.



The United States subsidized the price of the gasoline, meaning Iraqis only paid the prewar price of 4 cents per gallon.

Democratic Reps. Henry Waxman of California and John Dingell of Michigan had accused KBR of price-gouging for gasoline used in Iraq.

The Army is to open its KBR contracts to competitive bidding next month. The contracts evolved from work to put out oilfield fires into overseeing reconstruction of Iraq's oil infrastructure and providing fuel for the country. KBR also provides support services to U.S. troops in Iraq, such as serving hot meals.

Halliburton has said it needs to charge a high price for fuel because it must be delivered in a combat zone. Several KBR workers have been killed or wounded in attacks by Iraqi insurgents.

The allegations of overcharging are not the first against KBR. Last year, the firm paid $2 million to settle charges that it inflated prices for repairs and maintenance at Fort Ord, Calif.

Congress' General Accounting Office (news - web sites) found in 1997 and 2000 that KBR had billed the Army for questionable expenses on its support contracts for operations in the Balkans. Those reviews cited instances such as charging $85.98 per sheet of plywood that cost $14.06 and billing the Army for cleaning some offices up to four times per day.

Cheney, a former defense secretary, stepped down as chief executive officer of Halliburton when he became Bush's running mate in 2000 and has said he played no role in contracts for his former company. Cheney became head of the company in 1995.

[Zhukov]

I have lost all my faith in them.

[camacazio]

I've never had any faith. I knew from the start that there would be corruption, so I don't even bother finding out.

[Zhukov]

Is it coruption when it is legal?

I never had any faith in them or their cronies either, although this article is pretty funny.



Solidarity forever, solidaity forever, solidarity forever!

[mburbank]

See, what I like about the pentagon responce is tht they are saying it ISN'T corruption.

They're saying this is wrong, it's a problem, but it's just because these guys to whom we gave a massive no-bid contract turn out to suck at the job to the tune of millions of dollars in waste.

[The One and Only...]

Just like the teacher unions.

[Zbu Manowar]

And those lousy Irish robots.

[Suck 'n' Fuck]

Today's lesson: When the President and Vice-President of the USA have close ties to oil companies (like Halliburton), they award contracts to their former companies and make money and/or make their friends money.

That is all.

[thebiggameover]

The United States subsidized the price of the gasoline, meaning Iraqis only paid the prewar price of 4 cents per gallon.

so it would be cheeper for me to drive to iraq to fill up my car and drive back??

[ScruU2wice]

didn't someone on these boards perdict this would happen?
maybe im wrong :/

[mburbank]

I'd say it was me, but I'm still reeling from what a moron Once and Again was.

Original Post: Something is bad.

OAO Response: Oh yeah? Well some other thing that you like that has no relationship to this discussion is bad too!

[Zhukov]

I heard that crazy Rumsfeld on TV today, "It wasn't overchrging it was a dissagrement. What I mean is... It might have been a dissagrement."

Just like the teacher unions.

haha...

[kellychaos]

I'm of the opinion that the republican party forsaw the threat of the media leak looming in the future and decided to cop to it before the media had a chance to expose them. I'm mean, really. Bush is in the oil business and doesn't know when he's been overbid?! Give me a break!!

[The One and Only...]

Oh, it's very related. Halliburton = wasting taxpayer money. Teacher unions = wasting taxpayer money.

Is the brain churning yet?

[mburbank]

This is typical of your argument style. You see a single connection and you draw a conclusion without even looking at the rest of the situation. In addition, your horse blinders show you only the sliver of the issue that coresponds with your own narrow views. Was this thread about wasting taxpayer money?

In addition, and taking your view. Taxes were wasted on Haliburton, (undebatable since even W. says they overcharged, althout he isn't going to punish them in any way, just make them give the money back. Halliburton was in a position to overchrage based on a contract they didn't have to bid for.

That the teachers union wastes money is quite debatable. They arrive at this position through collective bargaining. A group decision to fight together to prevent explotation is a little different than being handed a sweetheart deal with zero competition and then overcharging.

You want a thread about teachers unions? Start one. You agree that it's scandolous that Halliburton got the deal they got? Say so. Or don't say anything. Crapola like you just dumped is nothing but Vinth with better grammer.

[The One and Only...]

I get tired of "hate Bush" threads.

And yes, teacher unions waste money. Unions have special privelidges that go beyond the right to organize - particularly when "bargaining" with the government.

Ever hear of the Davis-Bacon Act? You should have. It's a piece of Jim Crow that has been kept around for far too long - and it raises our taxes.

[mburbank]

Ever hear of the word pedant?

[kellychaos]

Originally Posted by The One and Only...

I get tired of "hate Bush" threads.

And yes, teacher unions waste money. Unions have special privelidges that go beyond the right to organize - particularly when "bargaining" with the government.

Ever hear of the Davis-Bacon Act? You should have. It's a piece of Jim Crow that has been kept around for far too long - and it raises our taxes.

Red herrings for sale! Get your red hot red herrings here!!

[mburbank]

I know what he means about being tired of 'hate Bush' threads. That's exactly what I am of Enron, tired! It's the same thing.

[Phil the anorak]

Originally Posted by thebiggameover

so it would be cheeper for me to drive to iraq to fill up my car and drive back??

Probably not no. Not unless the prospect of queueing 8 hours for gas fills you with joy.

[mburbank]

I know what you mean about waiting in line. That kind of frustration is exactly how I feel waiting for Chenney to reveal the composition of his energy task force.

[ranxer]

haliburton is overcharging for stuff like this?!

AFP , WASHINGTON
Sunday, Dec 14, 2003,Page 7
The Pentagon repeatedly warned contractor Halliburton-KBR that the food it served to US troops in Iraq was "dirty," as were as the kitchens it was served in, NBC News reported on Friday.

Halliburton-Kellogg Brown and Root's promises to improve "have not been followed through," according to a Pentagon report that warned "serious repercussions may result" if the contractor did not clean up.

The Pentagon reported finding "blood all over the floor," "dirty pans," "dirty grills," "dirty salad bars" and "rotting meats ... and vegetables" in four of the military messes the company operates in Iraq, NBC said, citing Pentagon documents.

The report came as President George W. Bush fended off Pentagon reports that Halliburton-KBR overcharged US$61 million for gasoline it sold the military in Iraq. Dick Cheney ran Halliburton for five years until becoming vice president.

The company feeds 110,000 US and coalition troops daily at a cost of US$28 per troop per day, NBC said.

The Pentagon found unclean conditions at four locations in Iraq, including one in Baghdad and two in Tikrit. Even the mess hall where Bush served troops their Thanksgiving dinner was dirty in August, September and October, according to NBC.

This adds up to "a company that arrogantly is overcharging when they can get away with it and not providing the quality of service that they agreed to do," Representative Henry Waxman, Democrat of California, told NBC.

Halliburton-Kellogg Brown and Root told NBC that "hostile conditions" pose special challenges as they served the 21 million meals so far to the troops at 45 sites in Iraq.

"We have taken quick action to improve," the company said.

i freaking hope so!

surprise! this isn't printed anywhere in the U.S. that i can find
http://www.taipeitimes.com/News/worl.../14/2003079545

[mburbank]

Well thank God we didn't make them bid for the contract! Think of the resources that would have eaten up.

See, here's the thing, if I overcharged my boss 61 million bucks, Not only would he make me give it back, as W. says he's going to do, I'd kind of be fired. And probably in trouble with the law.

And my boss, if he hadn't interviewed anyone else for te job he'd given me? He'd probably have some splainin' to do as well.

[kellychaos]

Originally Posted by Phil the anorak

Probably not no. Not unless the prospect of queueing 8 hours for gas fills you with joy.

A lesson in peer pressure is at work here. When they get annoyed enough with the 8-hour queues, then maybe some of them will help the U.S. effort in stopping the sabotage of the refineries and gas lines. Sabotage does tend to put a damper on oil production.