Halliburton: Army to Withhold Payments

[southernleftylady]

HOUSTON - The U.S. Army will begin withholding 15 percent of its payments on Halliburton Co.'s future invoices for logistical support of troops in Iraq (news - web sites) and Kuwait, the oil services conglomerate said Tuesday.
Halliburton reversed its announcement Monday that the Army Materiel Command had given the company more time to explain and account for its costs before implementing a clause in a contract allowing withholding of payments. Halliburton said that on Monday the company understood that the extension, which expired Sunday, would remain in effect "based on clear oral assurances from senior Pentagon (news - web sites) representatives."

Halliburton said Tuesday the company had learned that the Army Materiel Command had refused to grant a third extension before implementing the clause, which allows the government to withhold 15 percent of payments until contractors prove their costs.

Halliburton has been awarded more than $6 billion in contracts related to the U.S.-led invasion of Iraq, but the company has been under fire for allegedly overcharging the government. Halliburton says it is a political target, denies wrongdoing and disputes whether the withhold is legally justified.
http://news.yahoo.com/news?tmpl=story&u=/ap/20040817/ap_on_bi_ge/halliburton_6

[swag]

1. Starve the troops again KBR?

A friend on another board pointed to this graph from the article

"Halliburton said KBR, its engineering and construction arm that performs much of its government contract work, will offset the loss by withholding 15 percent from payments to subcontractors."

and speculated that this could mean that Halliburton/KBR will be starving our troops again.

[papau]

2. So let the troops buy bottled water .... A Bush/GOP slogan

:-)

[southernleftylady]

3. kick