IN THE NEWS
The Halliburton subsidiary Kellog Brown Root admitted recently that it can't account for $18.6 million worth of equipment used in Iraq. Perhaps in light of the $87 billion Iraqi appropriations bill, that may not sound like a lot. Sure, there's always shrinkage of anyone's inventory, and Iraq's regular descent into kleptocracy increases the rate of theft. Of course, a lot of equipment may have unofficially gone missing, but officially, it may have "fallen off the back of the truck" as part of deals KBR struck with local leaders.
However, it's the willful waste described in this newswire article that really raises eyebrows--and hackles. Five star hotels in Kuwait? Trucks abandoned because of flat tires? That sounds a lot more like the careless, even contemptuous, behavior of a company doing business on cost-plus contracts with little oversight. No one reading this news is shocked, given Halliburton's history of "gravy train" projects since the occupation started.
Perhaps one of this blog's occasional visitors, someone who worked in the CPA, particularly on economic issues, can shed some light on this question. Simone, are you out there?
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