csua.org/u/cj5 -> news.yahoo.com/news?tmpl=story&cid=584&e=1&u=/nm/20050628/pl_nm/iraq_halliburton_dc
Click Here Bunny Greenhouse, the Army Corps of Engineers' top contracting official-t urned whistle-blower, said in testimony at a hearing by Democrats on Cap itol Hill that "every aspect" of Halliburton's oil contract in Iraq had been under the control of the Office of the Secretary of Defense. "I can unequivocally state that the abuse related to contracts awarded to KBR (Kellogg Brown and Root) represents the most blatant and improper c ontract abuse I have witnessed during the course of my professional care er," said Greenhouse, a procurement veteran of more than 20 years. Col Rose-Ann Lynch said the Pentagon h ad received the report but had not had a chance yet to fully review it. "The department is committed to an integrated, well-managed contracting p rocess in Iraq," said Lynch, adding that just because costs were questio ned by auditors this did not mean a company had overcharged the military .
Dick Cheney who headed Halliburton company from 1995-2000. Pressed by lawmakers whether she thought the defense secretary's office w as involved in the handout and running of contracts to KBR, Greenhouse r eplied: "That is true." "I observed, first hand, that essentially every aspect of the RIO (Restor e Iraqi Oil) contract remained under the control of the Office of the Se cretary of Defense. Halliburton issued a statement strongly rejecting comments by Greenhouse and others at the hearing, including a former KBR employee who accused t he company of overcharging for food services provided to troops under a logistics deal. "The only thing that's been inflated is the political rhetoric which is m ostly a rehash of last year's elections," spokeswoman Cathy Mann said of the hearing. HALLIBURTON DEFENDS ITSELF Regarding claims of political influence because of Cheney, Mann said it w as easier to "assign devious motives than to take the time to learn the truth." Both the Pentagon and the Corps, which was in charge of a sole-source oil contract given to KBR in Iraq, have denied any special treatment for KB R The Corps did not immediately respond to questions. Democrats called for an urgent hearing and an investigation into what the y called contracting abuses involving KBR. "This testimony doesn't just call for Congressional oversight -- it screa ms for it," said Sen.
What concerned Greenhouse most was that the oil contract, which had a top value of $7 billion, was given to KBR without competitive bidding. She irked her bosses by writing her concerns by hand in official documents b ut said these were overlooked. In one instance, she said Army Corps officials bypassed getting her signa ture to grant a waiver for KBR to be relieved of its obligation to provi de cost and pricing data for bringing fuel into Iraq. That waiver was granted after a draft Army audit said KBR may have overch arged the military by at least $61 million to bring in fuel to Iraq to e ase a shortage of refined oil. Greenhouse acknowledged she had become a thorn in the side of the Army Co rps and said she had been advised not to attend the hearing because of i ts partisan nature. Rory Mayberry, a former food production manager at a US military base f or KBR from February-April 2004, said the company charged for meals it d id not serve to troops and had dished up spoiled food. KBR's Mann dismissed his taped testimony and said issues regarding billin g over food services had been resolved.
A KBR (Kellogg, Brown and Root) sign adorns the Halliburton corporate headquarters near downtown Houston, December 12, 2003, after the compan y removed the Halliburton name from the building and renamed it KBR amid controversy surrounding the company's White House links and overbilling allegations for military contracts in Iraq. A top US Army procurement official said on June 27 2005 that Halliburton's deals in Iraq were the worst example of contract abuse she had seen as Pentagon auditors flagg ed over $1 billion of potential overcharges by the Texas-based firm.
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