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Army paid millions in bonuses to corrupt contractor

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May 20, 2009

The U.S. Army paid "tens of millions of dollars in bonuses" to KBR Inc, its biggest contractor in Iraq, even after it concluded the firm’s electrical work had put U.S. soldiers at risk, according to a source close to a U.S. congressional investigation.

The Senate Democratic Policy Committee plans to hold a hearing on Wednesday to examine KBR’s operations in Iraq, and question why the Army rewarded the Houston-based company.

The panel says KBR has been linked to at least two, and as many as five, electrocution deaths of U.S. soldiers and contractors in Iraq due to "shoddy work."

Investigators believe hundreds of other soldiers may have received electrical shocks, the source added. The Army is investigating.

The company denies responsibility for any of the electrocutions, saying it is proud of its work and that its employees make great sacrifices to get the job done.

KBR was part of Halliburton Co until two years ago. Former Vice President Dick Cheney served as Halliburton’s chief executive from 1995 to 2000, when he became George Bush’s running mate.

During the Bush administration, some critics claimed Cheney’s deferred compensation from the company represented a conflict of interest and questioned Halliburton’s winning of lucrative government contracts in Iraq.

Military reports have criticized KBR’s work in Iraq in recent years. Yet afterward, the company received "tens of millions of dollars in bonuses," said the source, who declined to be identified.

"We want to know why," the source said.

The military was invited to send a witness to testify at Wednesday’s hearing, but the committee agreed to let it submit a written statement instead, the source said. Witnesses who are expected to attend include a former KBR electrician.

On Tuesday, the Army had no immediate comment when asked about the bonuses.

A September 30, 2008, letter to KBR from an officer in the Defense Department’s Defense Contract Management Agency had harsh words for the company.

"We cannot overemphasize the significance of the lack of sustained electrical support services being provided by KBR in Iraq to maintain the minimum life, health and safety standards in support of our warfighters," wrote Captain David Graff, an agency commander.

A February 2007 report by the agency also raised concerns about KBR and its subcontractors in Iraq — while acknowledging the difficulty of working in a war environment.

"Primary safety threat, theater wide, is fire due to the inferior 220 electrical fixtures found throughout Iraq," it said. "Improper installation, substandard equipment purchases (such as light fixtures) and heavy usage appears to be the three primary causes of these fires."

U.S. lawmakers have raised concerns about the U.S. military’s increased use of private contractors in Iraq and Afghanistan and have said KBR and other companies should be held accountable.

KBR spokeswoman Heather Browne said, "KBR remains proud of the work it performs in Iraq."

"We remain committed to engaging in a transparent and more importantly, a fact-based dialogue on this issue while pledging continued full cooperation and support to the military."

The Senate Democratic Policy Committee is the research arm of the Senate Democratic leadership and often conducts investigations of its own.

Posted by on May 20, 2009. Filed under FUBAR. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

7 Responses to Army paid millions in bonuses to corrupt contractor

  1. barak

    May 20, 2009 at 8:57 am

    Isn’t that the company owned or operated by Dick Cheney?

  2. AustinRanter

    May 20, 2009 at 10:09 am

    And the list goes on and on and on and on….

    The unraveling of the Modern Day American Government is going to take decades, perhaps a century or two to figure out all of the corrupt, wildly lavished lives and events that were enjoyed by all who ran our government and the executives in Corporations who ran them.

  3. Elmo

    May 20, 2009 at 1:34 pm

    Did you say that people are gambling at Rick’s place in Casablanca?

  4. hologram5

    May 20, 2009 at 5:28 pm

    To the first poster: Yes this is the rat outfit run by Darth Cheney. He and all the crooks that are taking advantage of the system and ripping us (the taxpayers) off should be sent out into the desert in Iraq/Afganistan without water or any protection. Better than that, just let us poor people have them, we’ll take care of them… hmm, right.

    To Boldly Go…
    Anywhere there is sanity…

  5. Carl Nemo

    May 20, 2009 at 8:44 pm

    What’s tragic about this story is that this ongoing criminal enterprise on behalf of the major MIC players and the hundreds of camp-following minor contractors has been going on since 2003.

    Obviously we couldn’t expect the Bushistas to step in and put a summary halt to this shakedown of the taxpayers, but now with our new “dear leader” in place, nothing is happening to curtail this activity and he’s the so-called “Commander in Chief”…no?!

    My wife and I voted for this “jive turkey” and were fooled too like millions of other voters by his “silver-tongued” oratory and “yes we can” bullsh*t!

    He’s already fallen asleep at the helm and is simply enjoying the largesse and undeserved aplomb provided by this lofty office.

    Folks, we’ve been had for the umpty-umpth time by electioneering cycle bullsh*t. Obama is nothing but a facilitator for our summary destruction as a nation…period!

    The more things change, the more they remain the same…no?!

    Don’t assume that this is simply the fault of Congress. The President has the “privilege” of having a “bully pulpit” and if he so desired could order Congress to enact legislation for summary purse string tightening concerning their continual dispensation of mind-boggling amounts of cash to these contracting sob’s with a criminally disposed bent…!

    Is he doing so?!. Nah, he seems to be enjoying more so being a stand up comedian at press club gatherings.

    I’m pissed off…! X-(

    Carl Nemo **==

  6. AustinRanter

    May 20, 2009 at 10:55 pm

    It just keeps going and going and going…

    We must have the most corrupt government on the F****** planet.

    My mind is just shutting down. I don’t know if I can even sort out who did what to who and when, or how.

  7. lmw

    May 21, 2009 at 1:24 pm

    I thought you might be interested in this letter written by Army Corps of Engineers whistleblower Bunny Greenhouse, who was retaliated against after she testified to Congress last week. Ms. Greenhouse is calling on all Americans to support whistleblower protection for federal employees. To read her letter go to http://capwiz.com/whistleblowers/issues/alert/?alertid=13371836