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Tuesday, June 28, 2005

Iraq contractor lashed for huge cost overruns

By Sue Pleming in Washington
June 29, 2005

A top US Army official told Congress that Halliburton's deals in Iraq were the worst example of contract abuse she had seen, while Pentagon auditors revealed that overcharging by the firm could amount to more than $US1 billion ($1.3 billion).

Bunny Greenhouse, the Army Corps of Engineers' top contracting official-turned whistleblower, told a hearing by Democrats on Capitol Hill that "every aspect" of Halliburton's oil contract in Iraq had been under the control of the Office of the Secretary of Defence.

"I can unequivocally state that the abuse related to contracts awarded to Kellogg Brown & Root (KBR), the Halliburton subsidiary represents the most blatant and improper contract abuse I have witnessed during the course of my professional career," said Ms Greenhouse, a procurement veteran of more than 20 years.

Her blistering criticism came as the Democrats released a new report including Pentagon audits that identified more than $US1.03 billion "questioned" costs and $US422 million in "unsupported" costs for Halliburton's work in Iraq. >>>continued

http://www.smh.com.au/articles/2005/06/28/1119724635363.html

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