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For Immediate Release
August 18, 2004
EDWARDS CALLS ON BUSH TO STAND UP FOR FAMILIES, NOT HALLIBURTON
Today, while campaigning in Louisiana, Senator John Edwards will call on the Bush-Cheney administration to pay as much attention to helping families as they do helping their friends at Halliburton. New reports show that the administration, in an unusual move, is reversing its decision to withhold payment to Halliburton despite that they cannot account for nearly half their work it has been paid for in Iraq and Kuwait.
Statement of Senator Edwards:
“At a time when 22,000 manufacturing jobs have been lost here in Louisiana and nearly 2 million across the country—why would you cut back help just at the time when people need it the most? The Bush Administration can’t claim money, because yesterday they showed us that they’ve got it.
“One minute they’re with holding $60 million a month while Halliburton is being investigated for fraud and then the next minute, Halliburton’s getting paid in full. So far $4.3 billion.
“I guess someone made a phone call, looking out for their interests instead of yours. What kind of priorities are these? We know that working people in America are trying to get back to work and do what’s right. This Administration won’t help them, but they’ll make a quick call for the people at Halliburton.
“These are not the values John and I believe. They are not the American people’s values. This government does not belong to George Bush and Dick Cheney’s friends at Halliburton—it belongs to you.
“If you’re playing by the rules and doing what’s right, then so should Halliburton. And let me tell you, when John and I are in the White House, your needs will come first and theirs will come last because your cause is our cause.”
PENTAGON GIVES HALLIBURTON MORE TIME TO BILK TAXPAYERS
Under government rules, contractors cannot be paid more than 85 percent of their invoices until they fully account for their costs. It had appeared that the Army was going to withhold payments to Halliburton because the contractor cannot account for nearly half of its work in Iraq and Kuwait. But for the third time this year, the Army gave Halliburton an extension and will continue to pay them in full.
First It Appeared that the Army Would Give Halliburton Its Third Extension. On Monday, Halliburton announced that the Army would give the company a third extension to provide the needed documentation, meaning it would continue to be paid in full. (Washington Post, 8/18/04; New York Times, 8/17/04)
…Then It Seemed the Army Decided to Withhold Payments to Halliburton….Early yesterday, it appeared that the Army had decided to withhold an estimated $60 million a month some payments to Halliburton because of questions about billing for its work in Iraq. (Washington Post, 8/18/04; New York Times, 8/17/04)
…But Then Said They Would Give Halliburton More Time. Then later yesterday, the Army said it would give Halliburton more time to justify its claims. (Washington Post, 8/18/04; New York Times, 8/17/04)
Halliburton Hasn’t Accounted for Almost Half its Work in Iraq and Kuwait. According to a report by Pentagon auditors, Halliburton has not adequately accounted for more than $1.8 billion of work in Iraq and Kuwait, representing 43% of the $4.18 billion that Halliburton subsidiary Kellogg Brown & Root has billed the Pentagon so far. The Wall Street Journal reported “the latest Pentagon audit report underscores that KBR’s billing problems remain widespread and could pressure Army officials to begin withholding substantial sums from the company.” (Wall Street Journal, 8/11/04)
Pentagon Rules Halliburton’s Accounting System “Inadequate.” The Pentagon audit found that KBR's “internal control policies” are “inadequate” for providing acceptable cost estimates. Pentagon officials said that no defense contractor has had its estimating system ruled “inadequate” in years. (Wall Street Journal, 8/11/04)
Pentagon Auditors Said Halliburton Overcharged Government by $186 Million. During congressional testimony, William Reed, director of the Defense Contract Audit Agency, said Halliburton overcharged the government by $186 million for meals than were served to troops in Iraq. Four former Halliburton employees issued signed statements charging that Halliburton among other things, had paid $45 apiece for cases of soda and $100 per bag of laundry, and had abandoned nearly new, $85,000 trucks in the desert for lack of spare parts. (Houston Chronicle, 6/16/04; NYT, 6/16/04)
Halliburton Gouged The U.S. Government For Oil And Troops’ Food. The military investigated Halliburton and found that it overcharged for gas it imported into Iraq from Kuwait by as much as $61 million. In March 2003, the Pentagon announced it would withhold nearly $300 million in payments to Halliburton due to the company’s overcharging on food contracts. (AP, 2/9/04, 3/17/04; Reuters, 2/23/04)
Pentagon Opened A Criminal Investigation into Halliburton. Pentagon auditors asked the Department of Defense to investigate Halliburton’s activity in Kuwait, and in December 2003 the military ended its contract to with Halliburton subsidiary Kellogg Brown & Root to import oil. On February 23, 2004 the Pentagon opened a criminal probe into Halliburton’s price-gouging. (Associated Press, 2/9/04, 11/5/03; Reuters, 12/11/03, 2/23/04; New York Times, 12/10/03; Washington Post, 1/16/04, 12/31/04; Wall Street Journal , 8/3/04)
Vice President’s Office “Coordinated” Halliburton’s No-Bid Contract in Iraq. In March 2003, the Pentagon awarded a subsidiary of Halliburton a no-bid contract worth $7 billion to help rebuild Iraqi oil fields. According to Time, an internal Pentagon e-mail said “action” on the contract was “coordinated” with the Vice President’s office. A senior political appointee in the Defense Department, Michael H. Mobbs, who works for undersecretary of defense Douglas Feith, acknowledged that he selected Halliburton for Iraq reconstruction work. Before awarding the contract, Mobbs briefed top officials, including Lewis “Scooter” Libby, Cheney's top aide, and White House staff members. (Time, 5/30/04; LA Times, 5/7/03; WP, 2/10/04, 6/14/04)
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