Vice President Dick Cheney has a special interest in this week’s Congressional debate on the Bush administration’s request for $87 billion to maintain the occupation of Iraq and other military adventures abroad. If approved by the House and Senate in its current form, the proposal would allocate roughly $20 billion to reconstruct Iraq, with most of the rest of the money going to cover the costs of the occupation.
Approval of the $87 billion package would be good news for Cheney, who it is now evident, retains ties to his former employer, the energy and construction conglomerate Halliburton. Halliburton is, of course, a prime benecificary of military and reconstruction expenditures in Iraq.
The US Army Corps of Engineers has already awarded Halliburton’s engineering and construction arm, Kellogg, Brown & Root, a no-bid contract to restore Iraq’s oil industry. Halliburton parlayed an initial $37.5 million contract to put out oil-field fires into a range of responsibilities that has already run up roughly $1 billion in costs. “War is hell, but it has turned into financial heaven for Halliburton,” said Senator Frank Lautenberg, D-New Jersey, who with Representative Henry Waxman, D-California, has led the charge to expose details of Halliburton’s dealings in Iraq. “This sweetheart, no-bid contract given to Halliburton spikes up by hundreds of millions of dollars each week. It’s outrageous.”
The outrageousness does not stop there. The value of a contract between the Pentagon and Halliburton to manage military bases could end up costing as much as $2 billion.
Thus, if Congress approves the $87 billion spending bill, Halliburton will be well positioned to collect maximum payments on its existing contracts and to go for more gold as the Pentagon opens the dollar spigots. It is important to remember that Halliburton would not merely benefit from an increase in funding for reconstruction of Iraq’s oil industry. Halliburton has also integrated itself into the military side of the operation. As much of one-third of the current $3.9 billion-a-month cost of maintaining US troops in Iraq is paid to private contractors such as Halliburton, according to independent analysts.
A Washington Post report in August revealed that, “Services performed by Halliburton, through its Brown and Root subsidiary, include building and managing military bases, logistical support for the 1,200 intelligence officers hunting Iraqi weapons of mass destruction, delivering mail and producing millions of hot meals. Often dressed in Army fatigues with civilian patches on their shoulders, Halliburton employees and contract personnel have become an integral part of Army life in Iraq.”