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Tuesday, May 05, 2009

Former unit of Cheney’s firm makes up ‘vast majority’ of criminal audit cases in wake of Iraq war

Ex-Cheney firm accused of massive criminal fraud, bribery
In shocking testimony made by the Pentagon’s top auditor on Monday, the Defense Department revealed that a former unit of the company where Vice President Cheney was CEO is under investigation for allegedly billing for unallowable costs, accepting bribes, falsifying time cards and overbilling.
The onetime unit of Halliburton, KBR, is now an independent company. Halliburton formally broke off ties with KBR in April 2007.
April Stephenson, head of the Pentagon’s contract audit agency, said she didn’t know of any contractor probed that had ever been cited for so many abuses. Of the 32 cases under criminal investigation, KBR constituted the “vast majority.”

“I don’t think we are aware of a program, a contract or a contractor that’s had this number,” Stephenson said.
The allegations of potential fraud began in February 2004, with the most recent one being in March of this year. Cheney was CEO of KBR’s then-parent company, Halliburton, from 1995-2000, in the years leading up to his election to the office of vice president.
In a statement to Bloomberg News, a KBR spokesman said the firm “in no way condones or tolerates illegal or unethical behavior” and that “when KBR has discovered wrongdoing of any sort by an employee, we have swiftly reported it to the government.”
KBR is purportedly the largest non-union construction contractor in the United States.
The Associated Press’ writeup of the story follows.
Pentagon auditor cites heavy fraud by contractor
Top Pentagon auditor cites unprecedented number of reports of suspected contract fraud, waste

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