Democrats Criticize Payments to KBR
Pentagon Auditors Question More Than $1 Billion in Iraq Costs, Report Says
By Griff Witte
Washington Post Staff Writer
Tuesday, June 28, 2005; Page D01
Pentagon auditors have questioned more than $1 billion in costs by contracting giant Halliburton Co. for its work in Iraq, a number several times higher than previously disclosed, according to a report by congressional Democrats.
The report, based on Defense Contract Audit Agency documents and a briefing by DCAA officials, details $813 million in questioned costs on a Halliburton contract to provide logistical support to U.S. troops and $219 million on a no-bid contract to restore Iraqi's oil network.
The Defense Contract Audit Agency found an additional $442 million in Halliburton charges that were "unsupported," meaning the company had not provided enough documentation to justify the cost, the report said.
Among the costs that Pentagon auditors questioned were $152,000 in "movie library costs," a $1.5 million tailoring bill that auditors deemed higher than reasonable, more than $560,000 worth of heavy equipment that was considered unnecessary, and two multimillion-dollar transportation bills that appeared to overlap.
Halliburton spokeswoman Cathy Mann defended the company's performance, saying in a statement that many of the questioned costs have already been resolved and that the report amounted to "a gross mischaracterization of the true facts."...
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/27/AR2005062701727.html