Iraq row grows for Cheney firm

David Teather in New York
The Guardian

The Pentagon has decided to suspend $160m (£91m) in payments to Halliburton in an ongoing dispute over the amount the firm has charged the United States army for meal services provided in Iraq and Kuwait.

The move is the latest in a string of controversies to have hit the company, which used to be run by US vice president Dick Cheney, including allegations of bribery, contracts awarded without pitches and regulatory investigations.

Halliburton subsidiary Kellogg Brown & Root has billed the US army for almost $800m to provide meal services at 50 military facilities since late 2002.

Pentagon auditors have been investigating allegations of lax financial controls and systemic over-billing. In some cases, Halliburton has been accused of charging for three times the amount of meals it has served.

The disagreement dates back to the early months of this year when Pentagon auditors held back payments of $36m. In response, Halliburton said it would not submit billing for another $140m until the allegations of over charging could be properly investigated.

The Pentagon audit was concluded last week, it was reported in the US press last night. The auditors expect to make a final decision on whether the payments should be permanently disapproved by the end of June. The final figure could be far higher.

Halliburton won a 10-year contract in a competitive tender to provide a range of services to the military, from managing latrines, to laundry services and feeding troops.

The defence contract audit agency said the payments were being suspended after incomplete files and bills were found to have been submitted.

The problems surrounding Halliburton have been a political thorn in Mr Cheney’s side in an election year.

Halliburton has stood by its billing and argued that feeding so many thousands of troops and service personnel who are often on the move is a difficult proposition. It made no immediate comment last night.

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