[A-List] US state: Halliburton inquiry

["Michael Keaney" <michael.keaney@xxxxxx>]

Halliburton faces bribes inquiry

David Teather in New York
Thursday February 5, 2004
The Guardian

Criminal investigators in the US have opened an inquiry into allegations
that Halliburton was involved in $180m in bribes paid to Nigerian officials
during the late 1990s, when Vice-president Dick Cheney was company chief.

The financial regulator, the securities and exchange commission, has also
launched an inquiry.

The investigations add to the pressure on Halliburton after months of
scrutiny over its links to the White House and the way it has won contracts
in Iraq, as well as allegations of overcharging the US army for work carried
out.

But unlike recent controversy that has dogged Halliburton, the Nigerian
allegations stem from a period when Mr Cheney was chairman.

Halliburton disclosed the investigations into the Nigerian allegations in a
financial filing. It said: "The US department of justice and the SEC have
asked Halliburton for a report on these matters and are reviewing the
allegations in light of the US foreign corrupt practices act."

The inquiries are parallel to a French investigation into the payments,
which allegedly secured a contract to build a natural gas plant. A
consortium of four companies called TSKJ, including the Halliburton division
Kellogg Brown & Root, built the plant.

Halliburton said it was cooperating with the various inquiries and had
engaged its own outside legal counsel to conduct an investigation.

The French inquiry was sparked when an official of one of the four
companies, Technip, was charged with embezzlement. He said the consortium
maintained a $180m slush fund for bribes.

Halliburton has been awarded more than $9bn in contracts to help rebuild
Iraq and provide logistical support for US troops. Democrats, pointing to Mr
Cheney's leadership of the business, have accused the Bush administration of
cronyism.

The Pentagon is widening its own investigations into Halliburton. The
company this week agreed to repay more than $27m for overcharging the US
army for meal services provided at four camps. Last month, it reimbursed the
army $6.3m after disclosing that one or two of its employees may have taken
kickbacks.