New Halliburton Flap Dogs Cheney

A report by the Congressional Research Service has renewed the controversy over Vice President Dick Cheney’s links to Halliburton Co., the energy company he once led and that has received federal money to help rebuild Iraq.

Halliburton has said it did not benefit from connections to Cheney in its dealings with the government, including a controversial no-bid contract it won for postwar reconstruction in Iraq. Democrats say the contract has cost U.S. taxpayers $1.25 billion.

Cheney said this month on NBC’s “Meet the Press” that he severed all ties with Halliburton since leaving the company, and that he has “no financial interest in Halliburton of any kind.”

But Sen. Frank R. Lautenberg (D-N.J.) on Thursday said the new Congressional Research Service report “makes clear” that deferred compensation Cheney received from Halliburton, as well as stock options he holds, constitute a “financial interest” in the giant Texas oil services firm.

Without naming Cheney or Halliburton, the report from Congress’ research arm said that unexercised stock options and deferred salary are “among those benefits described by the Office of Government Ethics as ‘retained ties’ or ‘linkages’ to one’s former employer.... “

Lautenberg had requested the report.

Cheney’s office said Thursday that the vice president did not stand to benefit financially from Halliburton’s dealings with the government.

“The vice president does not receive any benefit if Halliburton stock rises or falls or if the company succeeds or goes bankrupt,” said Cheney spokeswoman Cathie Martin.

“It’s politics,” she added, “and frankly, they are irresponsible, baseless charges.”

Martin said Cheney bought an insurance policy that guaranteed his deferred compensation, regardless of how Halliburton performed.

In addition, the vice president “irrevocably” assigned future profits from the sale of his stock options to charities, Martin said.

According to his financial disclosure filings, Cheney reported $205,298 in deferred salary payments from Halliburton in 2001 and $162,392 in 2002. In addition, he reported holding 433,333 in unexercised Halliburton stock options.

Cheney was Halliburton’s chief executive for five years until he resigned in August 2000 to be George W. Bush’s running mate.

Cheney said on “Meet the Press” that he has had “absolutely no influence” in the awarding of any government contracts to Halliburton.

Lautenberg has called on the Senate Governmental Affairs Committee to hold hearings on Halliburton’s no-bid contract.