The Rag Blog: What's Wrong With This Picture?

04 December 2006

What's Wrong With This Picture?

KBR’s Violations Run Deeper, Wider
by Shreema Mehta

Dec. 4 – With millions of dollars in alleged contract abuse, former Halliburton subsidiary KBR has become a symbol of the rampant corporate fraud driven by the Iraq war. But a settlement announced last week by the US Justice Department reveals that KBR’s malfeasance began long before "shock and awe" hit Baghdad.

The Department of Justice (DoJ) announced Wednesday that it had reached an $8 million settlement with KBR over allegations that the company overcharged the US Army for support services provided during operations in the Balkans in 1999 and 2000. According to a DoJ statement, KBR continues to provide services to the military in the region.

The Justice Department would not reveal how much KBR, a construction and engineering company, was originally accused of overcharging.

"The Department of Justice remains committed to vigorously pursuing allegations of procurement abuses affecting the military," Peter D. Keisler, an assistant attorney general, said in a statement announcing the settlement.

According to the settlement, in return for paying the government $8 million, KBR will admit no wrongdoing.

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