NATIONAL BRIEFING
Pentagon auditors are warning the Army’s primary support contractor in Iraq -- responsible for mail, laundry, housing, meals and other duties -- to cut its workforce there or face nearly $200 million in penalties for keeping thousands too many on the payroll.
According to an internal Defense Department audit, Houston-based KBR Inc. has increased employee levels while U.S. troops steadily leave the country after more than six years of war. As a result, the U.S. is paying far more in labor costs in Iraq than it should.
The Oct. 26 audit by the Defense Contract Audit Agency was obtained by the Associated Press.
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