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Wednesday, March 09, 2005

All Referances to Halliburton Sanitized from DNC site

All referances after October 7, 2004 to 'Halliburton' have been sanitized from democrats.org website, most likely due to bin Laden's Election Eve Speech which was interpreted as an open endorsement for John Kerry and
the American Democratic Party's policies.

The phenomenea of what Thomas Sowell calls
"The Struggle to Control Memory" and rewrite history is evidently underway. The following text has been preserved from democrats.org and captures the flavor
of DNC rhetoric on the election eve.


The Hazards of Halliburton



Texas-based Halliburton, Vice President Cheney's former company, won a no-bid contract worth more than $7 billion to help rebuild Iraq-even as Cheney continues to profit from the company. For that favoritism, Halliburton has shown little regard for American taxpayers and-worse yet-American soldiers serving in Iraq and workers laboring at home. Reports show that Halliburton drastically overcharged Americans for gas being imported into Iraq and skimped on basic services to troops like providing clean working conditions and safe food. Halliburton could even benefit from President Bush's push to explore Mars.



Halliburton Has Been Very, Very Good to Dick Cheney



Cheney Made Millions As Halliburton CEO, Continues To Receive Income From The Company.Vice President Dick Cheney was CEO of Texas-based Halliburton from 1995-2000. In addition to providing a massive salary and bonus for only eight months of work in 2000, Halliburton's board of directors voted to give Dick Cheney a $20 million retirement package when he resigned. Cheney received the severance package even though he had only been with the company for five years and his contract stated that he would have to forfeit some of his retirement package if he retired before turning 62-Cheney retired at age 59. Cheney's compensation for the eight months of 2000 he served as CEO of Halliburton, according to the Associated Press, was "$4.3 million in deferred compensation and bonuses, and $806,332 in salary. The summer when he began his campaign with Bush for the White House, Cheney sold stock options worth just over $40 million." Halliburton approved the package on July 20, 2000, just five days before Cheney was announced as George W. Bush's running mate. [New York Times, 8/12/00; Los Angeles Times, 7/24/00; Associated Press, 7/18/02]



As Vice President, Cheney Continued Receiving Compensation From Halliburton. In his retirement package from Halliburton, Cheney was granted deferred compensation, which paid out his bonus his salary from 1999 over a five-year period and his bonus from that year in 2001. In 2001, while serving as Vice President, Cheney received $1,656,696 in deferred compensation from Halliburton, which included a bonus worth $1,451,398 and $205,298 in deferred salary. In 2002, Cheney received $162,392 in deferred salary compensation. ["Income: Type and amount," Schedule A, Standard Form 278, Richard B. Cheney Personal Financial Disclosure, May 15, 2002; May 15, 2003]



Cheney Retained Possession of 433,333 Options of Halliburton; Committed Them to Charities. Following his departure from Halliburton, Cheney retained possession of 433,333 options of Halliburton stock that were set to expire at three different times. In a press release, the Cheneys announced they were committing the options to three charities. [Richard Cheney Public Financial Disclosure, 9/6/00; 5/15/01; White House Press Release, "Vice President and Mrs. Cheney Release 2000 Income Tax Return," 4/13/01]



Congressional Research Service Said Cheney's Deferred Compensation Still Counts As Financial Interest. Cheney told NBC's Tim Russert that, "since I left Halliburton to become George Bush's vice president, I've severed all my ties with the company, gotten rid of all my financial interests. I have no financial interest in Halliburton of any kind and haven't had now for over three years." But, just days later, the Congressional Research Service released a report saying that federal ethics laws consider both Cheney's deferred compensation and his unexercised stock options as a lingering financial interest in the company. [Meet the Press, 9/14/03; Washington Post, 9/26/03]



Halliburton Did Business with Saddam



After First Gulf War, Halliburton Did Business With Iraq While Cheney Was CEO. While Cheney served as chairman and chief executive of Halliburton, the company acquired two subsidiaries, Dresser-Rand and Ingersoll Dresser Pump Co., which had signed contracts to sell oil production equipment to Iraq under the oil-for-food program for more than $73 million. The subsidiaries were formed and co-owned in 1993 between Dresser Industries, which Halliburton acquired in a merger under Cheney, and Ingersoll-Rand in order to enter a joint venture. Dresser-Rand and Ingersoll Dresser "sold water and sewage treatment pumps, spare parts for oil facilities and pipeline equipment to Baghdad through French affiliates from the first half of 1997 to the summer of 2000, U.N. records show." Ingersoll Dresser Pump also signed contracts -- later blocked by the United States -- to help repair an Iraqi oil terminal that U.S.-led military forces destroyed in the Gulf War." [Washington Post, 6/23/01; Petroleum Economist, 6/93]



Cheney Claimed Halliburton Did Not Do Business With Iraq. Cheney claimed on ABC's "This Week" that Halliburton did not do business in Iraq while he was with the company. After he was asked specifically about Iraq, Cheney said, "No. No, I had a firm policy that we wouldn't do anything in Iraq, even - even arrangements that were supposedly legal. ... Iraq's different, but we've not done any business in Iraq since the sanctions are [sic] imposed, and I had a standing policy that I wouldn't do that." [ABC, "This Week," 7/30/00]



Halliburton Questioned About Role In Iran. The Office of New York City Comptroller William C. Thompson asked Halliburton to provide more details about the work of its subsidiaries in Iran. In March 2003, Halliburton promised it would release information about its work in that country-which President Bush called a member of an "axis of evil." In October 2003, Halliburton gave the comptroller a "confidential" report, which Thompson posted on his website. The report shows that "Halliburton Products & Services Ltd.," is "a Cayman Islands firm headquartered in the United Arab Emirates," and forecasts more than $39 million worth of services for 2003. [ Houston Chronicle, 12/15/03; Bush State of the Union, 1/29/2002; Office of New York City Comptroller William C. Thompson]



Halliburton Hurting US Troops in Iraq



Halliburton Reaps Profits While Forcing Troops To Eat In Filthy Conditions. Halliburton's subsidiary Kellogg, Brown & Root [KBR] serves 110,000 soldiers in Iraq their meals. For that service, American taxpayers pay Halliburton "$28 per soldier per day." But, according to NBC News, "Pentagon inspections of mess halls run by KBR are finding a mess in some of them...In the main Baghdad dining facility where President Bush surprised the troops on Thanksgiving, inspectors found filthy kitchen conditions in each of the three previous months. Complaints filed in August, September and again in October report problems. Blood all over the floor of refrigerators, dirty pans, dirty grills, dirty salad bars, rotting meats and vegetables. In October, the inspector writes that Halliburton's previous promises to fix the problems have not been followed through and warns the company serious repercussions may result, due to improper handling and serving of food." [NBC News, 12/12/03]



Halliburton Overcharged On Troops' Food. The Wall Street Journal reported that Halliburton "allegedly overcharged more than $16 million for meals at a single U.S. military base in Kuwait during the first seven months of last year, according to Pentagon investigators auditing the company's work... Because of the new meal-billing discrepancies, the Pentagon has extended its audit of KBR food services to include more than 50 other dining facilities in Kuwait and Iraq, according to an e-mail 'alert' sent [January 30, 2004] to more than a dozen U.S. Army contracting officials ...This dispute focuses on meals served at Camp Arifjan, the huge U.S. military base south of Kuwait City. The e-mail memo...said that in July [2003] alone, a Saudi subcontractor hired by KBR billed for 42,042 meals a day on average but served only 14,053 meals a day. After reports of the investigation surfaced, Halliburton agreed to reimburse the government $27.4 million to cover any potential overcharges. In March 2003, the Pentagon announced it would withhold nearly $300 million in payments to Halliburton due to the company's overcharging on food contracts. "Halliburton spokeswoman Wendy Hall said the company disagreed with the decision and hoped to persuade the Pentagon to drop its plans." [Wall Street Journal, 2/2/04; Reuters, 2/3/04; Associated Press, 3/17/04]



Halliburton Stiffs Subcontractor: Troops May Face Cold Meals; American Workers Laid Off. NBC News reported that Event Source, the company subcontracted by Halliburton to provide 100,000 meals per day to US troops in Iraq, has been stiffed for over $87 million it's owed by Halliburton. As a result, Event Source threatened to stop serving hot meals until it is paid by Halliburton, and the company has had to lay off workers back in the United States. "When you get stuck out there for $87 million," explained Event Source CEO Phil Morrell, "it's a question of economics." [NBC News, 3/8/04]



U.S. Military Chief: Halliburton Is Stumbling Block to US Forces. During the second week in March 2004, Gen. Ricardo Sanchez, the top US military officer in Iraq, circulated a letter calling Halliburton a major stumbling block to US efforts there. Gen. Sanchez' letter "addresses efforts by Halliburton's Kellogg Brown & Root (KBR) subsidiary to help the Army consolidate to fewer, but larger, bases around Iraq without interrupting military operations. In Baghdad, Iraq, for example, U.S. troops are moving from 26 bases to as few as six. But in the letter, Gen. Sanchez says KBR hasn't said precisely when it will have these consolidated bases ready for new troops. Army officials say KBR's shortcomings on the base construction have complicated the largest troop rotation since World War II. The letter also criticizes KBR for late payments to food subcontractors, said Army officials, who gave details of the letter but declined to provide a copy. At least one subcontractor has threatened to withhold food service to about 2, 000 U.S. soldiers in Iraq, leading the Pentagon's inspector general to investigate KBR food-subcontractor complaints that KBR isn't paying its bills on time." [CNN, 3/15/04]



Despite Fraud, Halliburton Continues to Receive Billions in Taxpayer Money



As The Second War In Iraq Began, Halliburton Was Awarded No-Bid Rebuilding Contracts Worth Billions. In March 2003, the Pentagon awarded Kellogg Brown and Root, the construction wing of Halliburton, a no-bid contract to help rebuild Iraqi oil fields and conduct "operation of facilities and distribution of products." The initial deal was thought to be worth as much as $7 billion. Today, Halliburton is the largest private contractor in postwar Iraq, with potential deals totaling over $11 billion [ Los Angeles Times, 5/7/03; Washington Post, 2/10/04]



Halliburton Gouged Gas Prices In Postwar Iraq At Expense Of American Taxpayers. The military investigated Halliburton and found that it overcharged for gas it imported into Iraq from Kuwait by as much as $61 million. US taxpayers and the United Nations oil-for-food program are paying Halliburton an average price of $2.64 per gallon, which is more than twice what others pay for Kuwait fuel. The appropriations bill that President Bush signed in November 2003 mandates that taxpayers subsidize all gas important costs beginning in 2004. Pentagon auditors have asked the Department of Defense to investigate Halliburton's activity in Kuwait, and in December the military ended its contract to with Halliburton subsidiary Kellogg Brown & Root to import oil. On February 23, 2004 the Pentagon opened a criminal probe into Halliburton's price-gouging. [Associated Press, 2/9/04; Reuters, 12/11/03; New York Times, 12/10/03; Associated Press, 11/5/03; Washington Post, 1/16/04, 12/31/04; Reuters, 2/23/04]





  • Bush Demanded Halliburton Repayment. Asked by reporters about Halliburton's price gouging, President Bush claimed "if there is an overcharge like we think there is, we expect that money to be repaid." [Bush Media Availability, 12/12/03]


  • Halliburton Has History of Defrauding Government In Military Contracts. In February 2002, Halliburton subsidiary Kellogg Brown & Root Services agreed to pay the government $2 million to settle charges that it had inflated contract prices for maintenance and repairs at Fort Ord in Monterey, CA. According to the Associated Press, "The suit, filed in Sacramento, alleged the company submitted false claims and made false statements in connection with 224 delivery orders between April 1994 and September 1998. Under the terms of its contract, the company did not bid against other contractors for maintenance and repair projects, instead presenting the military with fixed costs it said were necessary to perform specific projects." [Associated Press, 2/9/02; Deseret News (Salt Lake City, UT), 8/5/02]




Halliburton Employees Took Kickbacks To Help Gouge US Taxpayers. Halliburton admitted it overcharged the Pentagon $6.3 million for an Army supply contract in Iraq and repaid the money. Part of that overcharge may have taken the form of kickbacks paid by a Kuwaiti subcontractor to at least two of its employees. Halliburton has already admitted the kickbacks took place, and has fired the individuals involved. The kickbacks are, however, under Pentagon investigation. [Associated Press, 1/24/04; Los Angeles Times,1/24/04]



US Knew Of Halliburton Kickbacks Before New Contract Awarded. The Financial Times reported that "The Bush administration knew that Halliburton had overcharged the US government on an Iraq reconstruction contract before it awarded the company a separate lucrative contract last week to repair Iraqi oilfields. Halliburton...informed the Pentagon inspector-general on January 15 that its Kellogg Brown & Root subsidiary had overcharged the US government by $6 million on a contract to supply US troops. But the following day, the Army Corps of Engineers gave the company another contract worth up to $1.2 billion to rebuild southern Iraq's oil industry." [ Financial Times,1/24/04]



White House Ignored Environmental Concerns Caused By Halliburton. Halliburton is the leading provider of an oil and gas procedure called hydraulic fracturing, which can sometimes cause underground sources of drinking water to be contaminated by carcinogenic and toxic chemicals. The White House deleted from its "White House National Energy Policy" any mention of the environmental concerns associated with hydraulic fracturing, even though the Department of Energy had included the information in a draft of its own energy policy briefing, and the EPA had told Congress such concerns exist. The energy bill passed by the US House in November 2003 contains exemptions for hydraulic fracturing from the Safe Drinking Water Act regulations. [House Committee On Government Reform, Minority Staff, 11/13/03; Knight-Ridder, 11/18/03]



Halliburton Benefits From Massive Corporate Tax Loopholes. While Vice President Cheney was CEO of Halliburton, the company set up offshore affiliates to avoid paying US taxes. According the Security and Exchange Commission, while Cheney was in charge, Halliburton set up over 20 affiliates in the Cayman Islands. [ Washington Post, 8/1/02]



Halliburton Could Benefit From Mars Exploration. In January 2004, President Bush proposed to spend billion of dollars on a push to put man on Mars by 2015. According to an article published in Oil & Gas Journal in 2000 by a scientific advisor to Halliburton, Mars exploration would benefit the company. The advisor, Steve Streich, was among several authors to suggest exploration of Mars represented "an unprecedented opportunity for both investigating the possibility of life on Mars and for improving our abilities to support oil and gas demands on Earth." [Associated Press, 1/15/03; Washington Post,1/16/04]

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