Halliburton Cited For Iraq Overhead-Costs in Oil Contract Called Extreme

[kpete]

Halliburton Cited For Iraq Overhead
Costs in Oil Contract Called Extreme

By Griff Witte
Washington Post Staff Writer
Wednesday, October 25, 2006; Page D01

Administrative overhead accounted for more than half the costs that a Halliburton Co. subsidiary passed on to the government under a key contract to restore Iraq's oil industry, a figure that critics said was unusually high.

A report released yesterday by the inspector general's office overseeing Iraq spending found that at least 55 percent, or $163 million, of $296 million in total costs rung up by Halliburton unit KBR went to expenses such as back-office support, transportation and security. That percentage was significantly higher than it was on work by other firms in Iraq, and experts said it is far above what is typically found on a government contract.

The findings are the latest that call into question KBR's work under the deal, which required the company to rehabilitate oil facilities in southern Iraq. Under the contract's terms, KBR is reimbursed for its costs and then receives a percentage for profit on top, an arrangement that critics contend has given the firm an incentive to run up its bills.

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http://www.opednews.com/maxwrite/linkframe.php?opedpg=http://www.washingtonpost.com/wp-dyn/content/article/2006/10/24/AR2006102401237.html&opedid=24869

[whistle]

1. How involved is the Carlyle Group in Iraq? Pretty major I would assume