Weapons of Mass Destruction (WMD)

DATE=6/15/04

TYPE=CORRESPONDENT REPORT

TITLE=CONGRESS/HALLIBURTON (L-O)

NUMBER=2-316749

BYLINE=DAN ROBINSON

DATELINE=CAPITOL HILL

CONTENT=

VOICED AT:

HEADLINE: Congress Examining Private Contractor in Iraq

INTRO: Controversy over recent revelations concerning the oil services company Halliburton found its way to Capitol Hill Tuesday as a congressional committee began new examinations of the role of private contractors in Iraq. VOA's Dan Robinson reports:

TEXT: The Houston, Texas-based company, has been the object of criticism since before the beginning of the U.S.-led war to oust Saddam Hussein.

The company received a multi-billion-dollar contract from the U.S. Army Corps of Engineers in 2002 to rebuild Iraq's oil infrastructure, a large portion of that sub-contracted to a key subsidiary, Kellogg Brown and Root.

Critics, especially congressional Democrats, charged that the contract, awarded without competition, constituted special treatment for Halliburton, which was headed until the year 2000 by Vice President Dick Cheney.

The U.S. General Accounting Office (GAO) found there was nothing improper with awards by the army, but recent revelations have prompted new questions and scrutiny.

Among House Democrats, Congressman Henry Waxman has taken the lead in investigating Halliburton. He describes problems with Halliburton and government oversight of sub-contracting as, in his words, worse than we thought.

/// WAXMAN ACT ///

"These decisions have real consequences. Our troops have died in Iraq because they lack body armor and reinforced humvees (vehicles). We can't afford to throw away money on Halliburton when we don't have enough funds to adequately equip and protect our soldiers."

/// END ACT ///

Mr. Waxman has pressed the White House and Defense Department to turn over documents and other information concerning the awarding of the initial contract to Halliburton.

/// OPT /// He accuses the Bush administration of failing to plan adequately for post-war developments in Iraq, or ensure proper supervision of how money going to contractors was spent. /// END OPT ///

In Tuesday's hearing, the (Republican) chairman of the House Government Reform Committee, Tom Davis, sought to place the Halliburton issue in context of circumstances leading up to the war in Iraq:

/// DAVIS ACT ///

"Make no mistake, overcharges cannot and will not be tolerated, and contractors need to establish systems and processes that protect the government from waste, and maximizes the reach of precious taxpayer dollars. But we need to keep in mind the enormity of the effort involved, and that it is being executed in a war time environment where lives are at stake."

//// END ACT ///

David Walker, comptroller general of the GAO echoed this, saying U.S. military services for the most part acted properly, in how they awarded contracts regarding Iraq. However, he added this:

/// WALKER ACT ///

They (contracts) require adequate planning and definitions of related requirements, as well as significant ongoing and active oversight by a variety of parties in order to make sure they are meeting the needs of the forces, in the most economic, efficient, and effective way possible under the circumstances. While the military services are learning how to use these contracts well, in many cases the services are still not achieving the most cost-effective performance are not adequately learning and applying the lessons of previous deployments.

/// END ACT ///

Questions about Halliburton and other companies involved in Iraq long ago became one of the most sensitive issues stemming from the U.S.-led war and this has increased in this election year and amid increased attacks by insurgents in Iraq on private contractors.

Republicans accuse Democrats of trying to use the Halliburton issue as a tool to damage President Bush's chances for re-election. Democrats portray Republicans as insensitive to abuses by large companies involved in reconstruction (of Iraq) and the cost to taxpayers.

Vice President Dick Cheney has consistently denied having any influence over contracts awarded to Halliburton, and President Bush has said he expects the company to return any money that was overcharged.

Congressman Davis has agreed to give the Pentagon until the end of June to produce additional documents not yet given to his committee or possibly face a subpoena for the material, a move Democrats support.

/// REST OPT ///

The congressional oversight investigation of Halliburton now includes statements recently released by four former employees describing what they say are examples of waste of taxpayer money, who have been asked to appear at the next hearing in July. (signed)

NEB/DAR/RH/MEM