Halliburton in dock again
by
Thursday 12 February 2004 11:46 PM GMT
The energy giant faces accusations of overbilling
Controversial US oil giant Halliburton is facing new accusations with two
ex-employees alleging the firm "routinely overcharged" for work it did for the
US military.
Examples of wasteful spending given by the former employees ranged from leasing
ordinary vehicles for $7000 a month to seeking embroidered towels at a cost of
$7.50 each when ordinary ones would have cost about a third of the price.
The Texas company, which is already being examined by the military for possible
overcharging for services, has consistently denied allegations of overbilling.
The two ex-employees, who contacted US Representative Henry Waxman, a
Californian Democrat who has been critical of Halliburton, worked for the firm's
procurement office in Kuwait.
Fuel and meals
Waxman and another Democrat Representative John Dingell of Michigan, wrote about
the "whistle-blowers" in a letter to the Defense Contract Audit Agency (DCAA),
which is already looking into whether one of Halliburton subsidiaries
overcharged for fuel it took into Iraq and for meals served to US troops in the
region.
"What is most disturbing about these allegations from the whistle-blowers is the
regular and routine nature of the overcharging," the lawmakers wrote in the
letter to the DCAA Director William Reed.
The DCAA confirmed receiving the letter and said it was under review.
Contracts
Halliburton subsidiary Kellogg Brown and Root has a logistics contract with the
US military that has so far received more than $3.7 billion in business, mostly
in Iraq.
It also has contracts worth nearly $4 billion to rebuild Iraq's oil industry.
The massive contracts fuelled allegations that the White House was favouring
Halliburton, once headed by Vice-President Dick Cheney.