US Congress rails against KBR, former Halliburton unit, for fraud and abuse on $20B contract

[sabra]

Source: AP

WASHINGTON: U.S. lawmakers on Thursday railed against defense contractor KBR Inc. for a string of fraud and contract abuses on a multibillion-dollar contract that provides food and shelter to U.S. troops in Iraq.

"I think profiteering during wartime is inexcusable," said Democratic Sen. Byron Dorgan, during a Senate Armed Services Committee hearing. "We've got a very serious problem. This is the most significant waste, fraud and abuse we have ever seen in this country."

...

Democratic Sen. Carl Levin, chairman of the committee, cited several examples of contract abuse, including KBR billing the U.S. government for millions of meals that were never delivered, overstating labor costs by 51 percent, or $30 million (€22.06 million) and wasting between $40 million (€29.41 million) and $113 million (€83.08 million) unnecessary vehicles.

Halliburton recently completed a stock-swap program that separates itself from KBR, leaving two independent companies.


Read more: http://www.iht.com/articles/ap/2007/04/19/business/NA-FIN-US-Congress-KBR.php

[JohnnyRingo]

1. Now we see why Haliburton divorced itself from KBR

In typical administration fashion, they threw an underling to the wolves in an attempt to fix the blame for corruption on a lessor target.

[Just-plain-Kathy]

2. Sadly I found out that my husband and I own stock in Halliburton...

through his 401k. ...Last month Halliburton offered their stockholders 1.4 shares of KBR for every share of Halliburton? ...My husband called Halliburton and they said it was because they were “reorganizing".