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Halliburton Subsidiary KBR Linked to $13 Billion Fraud
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by Jarrett Martineau | May 6, 2009 at 10:49 am
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KBR, a former subsidiary of Halliburton, has been linked to a massive $13 billion in fraud cases, bribery claims, suspected overbilling, and "unsupported" costs.
The company is the largest contractor in Iraq and Afghanistan — and KBR's work "accounts for 43 percent of the Pentagon's audited Iraq contracting dollars".
The information was made public by a report from the Pentagon's auditor.
KBR, the Army's largest contractor in Iraq and Afghanistan, is linked to "the vast majority" of suspected combat-zone fraud cases that have been referred to investigators, as well as a majority of the $13 billion in "questioned" or "unsupported" costs, the Pentagon's top auditor said yesterday. In testimony before the bipartisan Commission on Wartime Contracting in Iraq and Afghanistan, April G. Stephenson, director of the Defense Contract Audit Agency, said investigators have sent to the inspector general a total of 32 cases of suspected overbilling, bribery and other violations since 2004.
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Unsurprisingly, President Obama is making contract reform one of his top priorities.
Shortly after taking office, he vowed to end no-bid contracts that he said "have wasted billions" of dollars in Iraq.
The hearing focused on contracts for logistics in war zones, which involves housing and feeding troops, washing their clothes, providing their recreation. Costs soared to $5.7 billion in 2008 from $55 million in 2001.
Nevertheless, under the Pentagon's proposed new logistics contract program known as Logcap 4, KBR will still be eligible to compete for Logcap 4 business.
"In terms of lessons learned, how did KBR become one of the contractors on Logcap 4?" commission member Linda J. Gustitus asked.
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at 03:15 on August 8th, 2009
KBR is a very corupt company that I am certain are guilty of some very underhanded stuff. I really don't care because they pay me way to much money to worry about where it is coming from.