Halliburton Is Awarded $72 Million in Bonuses

From Reuters

The Army said Tuesday that it had awarded $72 million in bonuses to Halliburton Co. for logistics work in Iraq.

In a second statement later, the Army said that although it had paid the $72 million, it had denied $10.1 million more in bonuses to Halliburton unit KBR and had not paid the maximum allowed on any of six task orders it reviewed.

“We have protected the taxpayer first,” the Army said.

Sen. Frank R. Lautenberg (D-N.J.), a vocal critic of Halliburton’s performance in Iraq, said the company did not deserve a bonus.


“It is outrageous that the Bush administration would give Halliburton a bonus after we have seen its overcharges, sloppy accounting and kickback schemes in Iraq,” Lautenberg said. “Giving Halliburton a bonus is like giving your worst employee a raise.”

KBR’s logistics deal with the U.S. military has been in the spotlight from the outset in Iraq, with auditors saying it may have overcharged for some work, including dining services.

The Army said dining facility costs questioned by auditors from the Defense Contract Audit Agency had not yet been considered.

Last month, the Army said it would keep $55.1 million in a food service billing dispute with the company.

In addition, investigators are looking into whether the Texas-based firm charged too much to supply fuel to Iraqi civilians, which Halliburton denies.

Halliburton, formerly run by Vice President Dick Cheney, has earned more than $7 billion under its 2001 logistics contract with the military.

Much of the work is on a cost-plus basis, which means the company can earn up to 2% extra depending on its performance.