this shouldn't be a surprise to anyone...

El_KabongEl_Kabong Posts: 4,141
edited October 2006 in A Moving Train
Halliburton arm accused of ‘abuse’ in Iraq

By Stephanie Kirchgaessner in Washington

http://www.ft.com/cms/s/dab658d0-65e4-11db-a4fc-0000779e2340.html

A Halliburton subsidiary that has been awarded billions of dollars in federal contracts in Iraq has been accused by an independent watchdog of “abuse” of government regulations that protect US taxpayers.

Stuart Bowen, the special inspector-general for Iraq reconstruction, said in an interim audit released on Thursday that Halliburton subsidiary Kellogg, Brown and Root (KBR) had, in effect, routinely inappropriately hidden data about one of its contracts from public scrutiny by marking the information as “proprietary”.

As a result of the investigation, army officials said they would prepare a modification to a multi-billion dollar Halliburton contract – known as Logcap – to “provide guidance” to KBR on the marking of proprietary data.

It is unclear how much the US military has paid for the contract, but one estimate put the figure at $7bn (€5.5bn, £3.7bn) last year. The contract gives the company the exclusive right to provide logistics support to the US military.

KBR said on Thursday it had used proprietary marking on the majority of its data in support of US army contracts for “at least the last decade” and that the practice was required under the US Trade Secrets Act. The company said the use of proprietary markings were appropriate because, as announced earlier this year, the Logcap contract is expected to be resubmitted for a competitive bid and divided among several contractors.

Questions about the transparency of data KBR provides the government were raised in July, after Mr Bowen announced his office would investigate whether services the US government was receiving under one KBR contract were “reasonable, efficient, and cost-effective”.

In his probe of a KBR contract that provides support to the US embassy in Iraq – a contract that falls under the larger Logcap contract – Mr Bowen found that the company wrongly shielded from public consumption data including: daily dining facility headcount; and the number of litres of fuel issued to generators maintained by foreign embassies in Iraq.

The company also initially refused to provide Mr Bowen, a former attorney for President George W. Bush who has emerged as a tough critic of the reconstruction effort, with cost data in a format that was acceptable to his office.

By illegitimately using privacy provisions, which are in place to protect companies competing for federal contract work by allowing them to keep some data secret, the special inspector-general said KBR had prevented the government from releasing “normally transparent information, thus potentially hindering competition and oversight”.

The critical audit comes on the heels of a separate report released this week that found that overhead costs had consumed between 11 per cent and 55 per cent of the cost of a handful of reconstruction projects.

Copyright The Financial Times Limited 2006
standin above the crowd
he had a voice that was strong and loud and
i swallowed his facade cos i'm so
eager to identify with
someone above the crowd
someone who seemed to feel the same
someone prepared to lead the way
Post edited by Unknown User on

Comments

  • RushlimboRushlimbo Posts: 832
    It surprises me -- that they actually wrote a story about it instead of ignoring it.
    War is Peace
    Freedom is Slavery
    Ignorance is Strength
  • Rushlimbo wrote:
    It surprises me -- that they actually wrote a story about it instead of ignoring it.
    Did you catch what kinds of information KBR claims is "proprietary"? The number of meals it serves to American troops and the amount of fuel it supplies to foreign embassies. So basically, it's arguing that the American taxpayer should just hand over billions of dollars but not ask any questions about whether they're getting what they paid for.

    True conservatives should *want* a Democratically controlled House because then Henry Waxman will subpoena KBR to within an inch of their lives, and they'll be forced to explain why they're feeding contaminated food and water to our troops at taxpayer expense.
    "Things will just get better and better even though it
    doesn't feel that way right now. That's the hopeful
    idea . . . Hope didn't get much applause . . .
    Hope! Hope is the underdog!"

    -- EV, Live at the Showbox
  • denverfandenverfan Posts: 218
    nebular accretion friends...the sun will burn out in 500 million years, we need to focus on "re-lighting" that sum bitch!
    "I hate to advocate drugs, alcohol, violence, or insanity but they've always worked for me." Gonzo

    'If my fuckin' ex-wife told me to take care of her dog while her and her new boyfriend went to Honolulu, I'd tell her to go fuck herself." -The Dude

    Whisky Drinker, Non-Hunter from Denver.
  • El_KabongEl_Kabong Posts: 4,141
    denverfan wrote:
    nebular accretion friends...the sun will burn out in 500 million years, we need to focus on "re-lighting" that sum bitch!


    stay off the sauce
    standin above the crowd
    he had a voice that was strong and loud and
    i swallowed his facade cos i'm so
    eager to identify with
    someone above the crowd
    someone who seemed to feel the same
    someone prepared to lead the way
  • Hope&Anger wrote:
    True conservatives should *want* a Democratically controlled House because then Henry Waxman will subpoena KBR to within an inch of their lives, and they'll be forced to explain why they're feeding contaminated food and water to our troops at taxpayer expense.

    True conservatives don't hold as a standard of success the number of subpoenas issued by a government.

    That these contracts have been opened up to competition is a step in the right direction. Hopefully we take the step after that and render such contracts unnecessary.
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