Corp-Ethics.com - Report: Halliburton faces 'payment cut'

Company	Halliburton [Company Info]
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Date	Issue	Title
25th Nov 2004	Other Issue	Halliburton faces 'payment cut'

Report

A US government auditor has backed a Pentagon recommendation to withhold payments to controversial US giant Halliburton over its work in Iraq.

Stuart Bowen, who is reviewing US spending in Iraq, says he supports proposals for the army to hold back 15% of monthly payments on future invoices. It follows a dispute over bills which officials say lack proper records.

The move could cost Halliburton, the largest US civilian contractor in Iraq, up to $60m (£32m) a month. "We agree with US Army Materiel Command and DCAA [Defense Contract Audit Agency] positions," Mr Bowen said in a memo, referring to an audit by the DCAA in August.

That recommended cuts of 15% after finding flaws in the accounting system used by Halliburton subsidiary Kellogg Brown & Root. Halliburton, once run by US Vice-President Dick Cheney, said it was not aware of any plan to implement the cuts.

"We will continue to work directly with our client regarding resolution for this issue," spokeswoman Cathy Gist said. The company has said it would pass on any cutbacks to its suppliers.

Part of the dispute is believed to centre on the way KBR bills for meals. The Pentagon wants to be charged for exactly how many meals are actually eaten, while Halliburton's systems are said to be based on estimates.

The army has not yet implemented the cuts. It has opted to give Halliburton more time to resolve the ongoing dispute, fearing punitive action could disrupt supplies to US troops.

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12th Jul 2006	Other Issue	Halliburton	US Army to end Halliburton deal
24th Mar 2006	Fraud Investigation	Halliburton	Ex-Halliburton staff in Saudi kickback
23rd Aug 2005	Other Issue	Halliburton	Halliburton worker admits bribes
15th Mar 2005	Other Issue	Halliburton	Halliburton in $108m Iraq probe
4th Dec 2004	Other Issue	Halliburton	Halliburton asbestos deal 'final'
29th Oct 2004	Fraud Investigation	Halliburton	FBI 'studying Halliburton deals'
15th Oct 2004	Questionable Practice	Halliburton	US agrees to Halliburton inquiry
21st Sep 2004	Questionable Practice	Halliburton	Halliburton hit with Nigeria ban
17th Aug 2004	Other Issue	Halliburton	US Army suspends Halliburton decision
3rd Aug 2004	Fraud Investigation	Halliburton	Halliburton settles accounts case
20th Jul 2004	Questionable Practice	Halliburton	Halliburton Iran deals under fire
19th Jun 2004	Other Issue	Halliburton	Halliburton cuts off KBR ex-boss
19th May 2004	Questionable Practice	Halliburton	Pentagon suspends Halliburton payments
10th May 2004	Questionable Practice	Halliburton	Halliburton seeks to settle Asbestos Liability
17th Mar 2004	Other Issue	Halliburton	US to withhold Halliburton bills
17th Dec 2003	Questionable Practice	Halliburton	Halliburton bankrupts own units
12th Dec 2003	Questionable Practice	Halliburton	Halliburton Questioned regarding Iran
22nd Nov 2003	Fraud Investigation	Halliburton	Halliburton in Iraq fuel costs row
15th Jun 2003	Fraud Investigation	Halliburton	Nigeria Fraud Investigation
13th Jun 2003	Questionable Practice	Halliburton	Halliburton awarded US military contact

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