Halliburton, Cheney, Corruption
The Bush Administration’s war on terror has became a source of substantial profit for Halliburton. The company’s commercial ties to terrorist states did not prevent it from assuming a prominent role. The Navy, for instance, paid Halliburton thirty-seven million dollars to build prison camps in Cuba’s Guantánamo Bay for suspected terrorists. The State Department gave the company a hundred-million-dollar contract to construct a new embassy in Kabul. And in December, 2001, a few years after having lost its omnibus military-support contract to a lower bidder, Halliburton won it back; before long, the company was supporting U.S. troops in Afghanistan, Kuwait, Jordan, Uzbekistan, Djibouti, the Republic of Georgia, and Iraq. Halliburton’s 2002 annual report describes counterterrorism as offering “growth opportunities.”
The Department of Defense’s decision to award Halliburton the seven-billion-dollar contract to restore Iraq’s oil industry was made under “emergency” conditions. The company was secretly hired to draw up plans for how it would deal with putting out oil-well fires, should they occur during the war. This planning began in the fall of 2002, around the time that Congress was debating whether to grant President Bush the authority to use force, and before the United Nations had fully debated the issue. In early March, 2003, the Army quietly awarded Halliburton a contract to execute those plans.
As it turned out, oil-well fires were not a problem. An Army War College study shows that of the fifteen hundred oil wells in Iraq’s two major oil fields, only nine were damaged during the war. Colonel Gardiner said he was puzzled by the Pentagon’s inability to predict this outcome. “Our intelligence before the war was good enough to know that,” he said.
After months spent trying to obtain more information about the classified Halliburton deals, Representative Waxman’s staff discovered that the original oil-well-fire contract entrusted Halliburton with a full restoration of the Iraqi oil industry. “We thought it was supposed to be a short-term, small contract, but now it turns out Halliburton is restoring the entire oil infrastructure in Iraq,” Waxman said. The Defense Department’s only public acknowledgments of this wide-ranging deal had been two press releases announcing that it had asked Halliburton to prepare to help put out oil-well fires.
The most recent budget request provided by the Coalition Provisional Authority in Iraq mentions the building of a new oil refinery and the drilling of new wells. “They said originally they were just going to bring it up to prewar levels. Now they’re getting money to dramatically improve it,” Waxman complained. Who is going to own these upgrades, after the United States government has finished paying Halliburton to build them? “Who knows?” Waxman said. “Nobody is saying.”
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