On May 10, without a hint of shame, the Bush administration
awarded Halliburton subsidiary Kellogg, Brown and Root (KBR)
$72 million in bonuses for its "very good" and "excellent"
work in Iraq.
Excuse me?
Just two months ago, the Justice Department indicted a KBR
manager for "major fraud against the United States" under
the same LOGCAP contract for which KBR is now being awarded
bonuses. According to the indictment, former KBR manager
Jeff Mazon billed the U.S. more than $5.5 million for
$680,000 worth of work. In other words, Mazon inflated KBR's
bill by over 700 percent.
By the way, that LOGCAP contract is a cost-plus-award-fee,
indefinite delivery, indefinite quantity contract. That
means Halliburton/KBR supplies an indefinite quantity of
supplies for an indefinite period of time, its costs are
fully reimbursed, and it get paid an additional amount of 2
to 7 percent of those costs. Good work, if you can get it.
Bush & Co. decided to award KBR over $72 million in bonuses
despite the fact that senior Halliburton/KBR officials
perjured themselves before the House Committee on Government
Reform back in July of 2004. At the time, the Committee was
investigating allegations that Halliburton/KBR employees
were taking kickbacks under the LOGCAP contract. At the
hearing, Halliburton/KBR representatives testified, under
oath, that none of their thieving employees were managers.
Oops. According to the federal indictment, Mazon was KBR's
Procurement, Materials and Property Manager.
Aside from the LOGCAP contract, Halliburton/KBR has bilked
and defrauded the U.S. for millions of dollars on other
contracts associated with the "rebuilding" of Iraq.
Investigations by the Defense Contract Audit Agency (DCAA),
revealed that Halliburton/KBR overcharged the U.S. no less
than $212 million under its Restore Iraqi Oil (RIO)
contract. The Bush administration awarded the RIO contract
to Halliburton/KBR without asking for competitive bids.
Under the RIO contract, Halliburton/KBR was issued ten task
orders for oil-related work throughout Iraq. While the Bush
administration has repeatedly refused to provide Congress
with any unredacted copies of the DCAA's audits of the ten
task orders, the National Security Subcommittee of the
Committee on Government Reform was able to obtain the audits
for task orders 5 through 10. Those audits reveal that
Halliburton/KBR overcharged by as much as 47.4 percent of
the total value of the individual task orders. The average
overcharge by Halliburton/KBR amounted to 12.6 percent of
the task order value.
Ever-eager to defend the good name of the Vice President and
his former company, Bush & Co. have repeatedly refused
to provide Congress with the audit reports prepared by the
DCAA. In fact, Bush & Co. made the extensive redactions to
the audit reports at the specific request of Halliburton/KBR.
Then, when the National Security Subcommittee threatened to
subpoena the audit reports (after its requests for the
audits were denied no fewer than 12 times), the Pentagon
replied that "issuing a subpoena will not get the material
released any faster."
Or, in the immortal words of our poetic Vice President, "Go
fuck yourself."
In fairness, what good would it be to have the Vice
President in your pocket if it didn't allow you to conceal
evidence of your fraudulent activity and then get a $72
million bonus?
Regardless, Bush & Co. have decided to conceal the
documented criminality of Halliburton/KBR despite Bush's
earlier promise to the contrary. Upon the release of the
DCAA's preliminary findings regarding the fraud and thievery
of Halliburton/KBR, Bush declared at a press conference on
December 12, 2003, that the DCAA's investigation would "lay
the facts out for everybody to see."
Apparently, Bush doesn't include Congress and the American
public in his definition of "everybody."
Ken Sanders is an attorney in Arizona.