The Committee On Government Reform Minority Office reports
Five former Halliburton employees and one former executive of a Halliburton subcontractor describe egregious examples of waste, fraud, and abuse involving Halliburton's Iraq contracts. A new Pentagon audit finds serious deficiencies in Halliburton's billing practices.
However on June 14, 2004, Chairman Tom Davis and the Committee on Government Reform administrative footdragging on hearing testimony of Halliburton's waste of taxpayer resources. In response, Waxman wrote:
Given that Halliburton is the single largest contractor in Iraq, my staff requested on May 26 that you invite Halliburton officials to testify at the upcoming hearing. Although your staff agreed to my request, they never issued a written invitation, and Halliburton representatives told my staff they had not been invited. Despite further requests from my staff, your staff refused to issue Halliburton a written invitation to testify.
Result? Halliburton's whistleblowers would not be able to testify as to Halliburton's systematic and deliberate waste of taxpayer resources.
This from Waxman's letter to Chairman Davis:
- David Wilson, a convoy commander for Halliburton, and James Warren, a Halliburton truck driver, described instances in which brand new $85,000 Halliburton trucks were abandoned or "torched" if they got a flat tire or experienced minor mechanical problems. They also described repeated incidents of theft involving both Halliburton and Army personnel. Mr. Warren stated that he brought these and other concerns to the personal attention of Randy Harl, the president and CEO of the Halliburton subsidiary for which they worked. He was fired a few weeks later.
- Marie deYoung, a Halliburton logistics specialist, described widespread overcharging and mismanagement by Halliburton. For example, Ms. deYoung described (and offered to provide documentation of) subcontracts under which Halliburton paid $45 per case of soda and $100 per 15-pound bag of laundry. Ms. deYoung also disclosed that Halliburton did not comply with the Army's request to move Halliburton employees from a five star hotel in Kuwait, where it cost taxpayers approximately $10,000 per day to house the employees, into air-conditioned tent facilities, which would have cost taxpayers under $600 per day.
- Michael West, a Halliburton labor foreman, describe how he and other Halliburton employees spent weeks in Iraq with virtually nothing to do, but were instructed to bill 12-hour days for 7 days a week on their timesheets. In addition, his superior directed him to buy unnecessary equipment, telling him, "Don't worry about it. It's a cost-plus-plus contract."
- Henry Bunting, a Halliburton procurement officer, described an almost complete disregard for costs among Halliburton officials. He described how he and other buyers were instructed to split large purchases into multiple purchase orders belong $2,500 in order to avoid the requirement to solicit multiple bids. When he raised questions, he was also told, "Don't worry about the price. It's cost-plus."
Absolutely appalling. Shall we write Chairman Davis and ask him why he's failing to investigate the fraudulent waste of taxpayer resources?
Waxman's Letter to Tom Davis
June 15 Full Committee Hearing, Rep. Waxman's Opening Statement
Statement of David Wilson
Statement of James Warren
Statement of Marie deYoung
Statement of Mike West
Statement of Henry S. Bunting