Halliburton "can't account for" $1.8bn

What do you think about the world?
Post Reply
User avatar
kyoukan
Super Poster!
Super Poster!
Posts: 8548
Joined: July 5, 2002, 3:33 am
Location: Vancouver

Halliburton "can't account for" $1.8bn

Post by kyoukan »

http://www.nytimes.com/aponline/busines ... urton.html
Report: Audit Looks at Halliburton Billing
By THE ASSOCIATED PRESS

Published: August 11, 2004
Filed at 4:46 p.m. ET


WASHINGTON (AP) -- Halliburton Co. did not adequately account for more than $1.8 billion it billed the government for work in Iraq and Kuwait, a published report on the findings of Pentagon auditors said Wednesday.

The results of the audit, reported by The Wall Street Journal, were the latest financial headache for Halliburton subsidiary KBR, formerly known as Kellogg Brown & Root, which filed for bankruptcy protection last year to resolve billions of dollars in pending asbestos claims.

The $1.8 billion amounts to 40 percent of the $4.18 billion KBR has already billed the Pentagon for its work feeding and housing military troops. The Pentagon could begin withholding payments from KBR if it determines it is owed money -- though it has yet to do so.

KBR officials told the newspaper the company has done nothing wrong, and expressed confidence the issue would be resolved without such action.

"The fact that we have negotiated and continue to negotiate proposals proves that our estimating system is valid,'' an unidentified KBR official was quoted as saying. "This is the same system that the company has used for more than 10 years.''

The audit, part of a report dated Aug. 4 that has yet to be made public, found that KBR's "internal control policies'' are "inadequate for providing verifiable, supportable, and documented cost estimates that are acceptable for negotiating a fair and reasonable price.'' Pentagon officials told the newspaper that that no defense contractor has had its estimating system ruled "inadequate'' in years.

Halliburton spokeswoman Wendy Hall told The Associated Press on Wednesday that the company disagrees with the report.

"This audit has nothing to do with the amounts we have billed the government or which costs will ultimately be determined allowable for our work in Iraq,'' she said. "This report alleges that Halliburton does not have a system which is adequate to produce proposals upon which to negotiate final price and this allegation is simply not true.''

Auditors' concerns included more than $900 million in payments for dozens of dining facilities; auditors say that more than a third of those costs may be unjustified, the newspaper said. Auditors also are examining $180 million in costs charged for fuel from Kuwait that was delivered to Iraq.

The dispute over the Iraq/Kuwait billing only intensifies the scrutiny on Halliburton.

Earlier this month, the company agreed to a $7.5 million settlement with the Securities and Exchange Commission to resolve an investigation into its accounting practices.

The company is also working to put its asbestos liabilities behind it. In late July, a federal judge in Pennsylvania affirmed approval of Halliburton Co.'s $4.17 billion plan to settle asbestos- and silica-related health claims.

On Wednesday, Halliburton shares fell 74 cents to close at $29.09 on the New York Stock Exchange.
I think I can probably make a few guesses where to start looking for it. Too bad there will won't be a formal inquiry until after the election, and only if Kerry wins.

I love how a company can sign a $10bn no bid contract while it is in the middle of filing for bankruptcy to weasel out of paying asbestos damages it is liable for.
User avatar
Siji
Way too much time!
Way too much time!
Posts: 4040
Joined: November 11, 2002, 5:58 pm
Gender: Male
XBL Gamertag: mAcK 624
PSN ID: mAcK_624
Wii Friend Code: 7304853446448491
Location: Tampa Bay, FL
Contact:

Post by Siji »

Maybe Bush will look for it like he so humerously looked for the WMD..
User avatar
Dregor Thule
Super Poster!
Super Poster!
Posts: 5994
Joined: July 3, 2002, 8:59 pm
Gender: Male
XBL Gamertag: Xathlak
PSN ID: dregor77
Location: Oakville, Ontario

Post by Dregor Thule »

Siji wrote:Maybe Bush will look for it like he so humerously looked for the WMD..
He just may find it under his desk tho ;)
Image
User avatar
Metanis
Way too much time!
Way too much time!
Posts: 1417
Joined: July 5, 2002, 4:54 pm
Location: Wisconsin

Post by Metanis »

Dregor Thule wrote:
Siji wrote:Maybe Bush will look for it like he so humerously looked for the WMD..
He just may find it under his desk tho ;)
Good deal, then I can submit my invoice for $100 Million
User avatar
Krimson Klaw
Way too much time!
Way too much time!
Posts: 1976
Joined: July 22, 2002, 1:00 pm

Post by Krimson Klaw »

I wonder what a tax audit would look like for them right about now.
User avatar
Niffoni
Way too much time!
Way too much time!
Posts: 1318
Joined: February 18, 2003, 12:53 pm
Gender: Mangina
Location: Halifax, Nova Scotia

Post by Niffoni »

I'm torn. On one hand, I'm outraged at how democracy is now a hollow shell, serving exclusively to placate the masses while they are lovingly assfucked by corperations/government (same thing). On the other hand, if I don't look the other way, the terrorists win.
Let's think the unthinkable, let's do the undoable, let's prepare to grapple with the ineffable itself, and see if we may not eff it after all. - Douglas Adams
User avatar
Krimson Klaw
Way too much time!
Way too much time!
Posts: 1976
Joined: July 22, 2002, 1:00 pm

Post by Krimson Klaw »

What? Why the hell would you look the other way, and how does terrorism even remotely fit into that equation?
User avatar
Niffoni
Way too much time!
Way too much time!
Posts: 1318
Joined: February 18, 2003, 12:53 pm
Gender: Mangina
Location: Halifax, Nova Scotia

Post by Niffoni »

Has it really become that hard to tell facetiousness from honest opinion on this board? I weep for humanity if my last post honestly sounds like something you'd hear in the current events forum.

I keed. Ees a joke, you see.
Let's think the unthinkable, let's do the undoable, let's prepare to grapple with the ineffable itself, and see if we may not eff it after all. - Douglas Adams
Spankes
Almost 1337
Almost 1337
Posts: 556
Joined: August 27, 2002, 9:16 pm
Location: Gilbert, AZ

Post by Spankes »

Niffoni wrote:I weep for humanity if my last post honestly sounds like something you'd hear in the current events forum.

Start crying!
EQ - Spankes - Retired
Wow - Randulph
User avatar
Krurk
Gets Around
Gets Around
Posts: 188
Joined: July 7, 2002, 9:40 pm

Post by Krurk »

Michael Moore told me that the Bush administration secretly forced Charlie to land in Florida so that Gov. Bush could hire Haliburton to do reconstruction. Apparently, profits were not as high as they expected in Iraq because of all the security concerns, so they figured they could rape Florida insurance companies for billions instead.
User avatar
Krimson Klaw
Way too much time!
Way too much time!
Posts: 1976
Joined: July 22, 2002, 1:00 pm

Post by Krimson Klaw »

Niffoni wrote:Has it really become that hard to tell facetiousness from honest opinion on this board? I weep for humanity if my last post honestly sounds like something you'd hear in the current events forum.

I keed. Ees a joke, you see.
You must not read this forum much.
User avatar
Karae
Almost 1337
Almost 1337
Posts: 878
Joined: July 3, 2002, 5:32 pm
Location: Orange County, California
Contact:

Post by Karae »

I thought Niffoni was taken over by Midnyte, Winnow, Metanis, Adex, or Kimoll for a second there...

Phew!
War pickles men in a brine of disgust and dread.
Rekaar.
Almost 1337
Almost 1337
Posts: 689
Joined: July 18, 2002, 8:44 pm
Contact:

Post by Rekaar. »

"This audit has nothing to do with the amounts we have billed the government or which costs will ultimately be determined allowable for our work in Iraq,''
So they're questioning their invoice system, not the actual invoices then?
Post Reply