Report Says Iraq Contractor Is Hiding Data From U.S.
By JAMES GLANZ and FLOYD NORRIS
New York Times
A Halliburton subsidiary that has been subjected to numerous investigations for billions of dollars in contracts it received for work in Iraq has systematically misused federal rules to withhold basic information on its practices from American officials, a federal oversight agency said yesterday.
The contracts awarded to the company, KBR, formerly named Kellogg Brown & Root, are for housing, food, fuel and other necessities for American troops and government officials in Iraq, and for restoring that country’s crucial oil infrastructure. The contracts total about $20 billion.
The oversight agency, the Office of the Special Inspector General for Iraq Reconstruction, said KBR had refused to disclose information as basic as how many people are fed each day in its dining facilities and how many gallons of fuel are delivered to foreign embassies in Iraq, claiming that the data was proprietary, meaning it would unfairly help its business competitors.
Although KBR has been subjected to a growing number of specific investigations and paid substantial penalties, this is the first time the federal government has weighed in and accused it of systematically engaging in a practice aimed at veiling its business practices in Iraq.
The allegations come at a critical time for the company, as Halliburton is trying to spin off the subsidiary. And in July, the Army announced that it would terminate KBR’s largest contract with the government, and the company says that it will compete to regain some of that business when the government calls for new bids.
(There is more, here.)
New York Times
A Halliburton subsidiary that has been subjected to numerous investigations for billions of dollars in contracts it received for work in Iraq has systematically misused federal rules to withhold basic information on its practices from American officials, a federal oversight agency said yesterday.
The contracts awarded to the company, KBR, formerly named Kellogg Brown & Root, are for housing, food, fuel and other necessities for American troops and government officials in Iraq, and for restoring that country’s crucial oil infrastructure. The contracts total about $20 billion.
The oversight agency, the Office of the Special Inspector General for Iraq Reconstruction, said KBR had refused to disclose information as basic as how many people are fed each day in its dining facilities and how many gallons of fuel are delivered to foreign embassies in Iraq, claiming that the data was proprietary, meaning it would unfairly help its business competitors.
Although KBR has been subjected to a growing number of specific investigations and paid substantial penalties, this is the first time the federal government has weighed in and accused it of systematically engaging in a practice aimed at veiling its business practices in Iraq.
The allegations come at a critical time for the company, as Halliburton is trying to spin off the subsidiary. And in July, the Army announced that it would terminate KBR’s largest contract with the government, and the company says that it will compete to regain some of that business when the government calls for new bids.
(There is more, here.)
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