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Charges Stack Up, Like KBR's Bankroll
There's waste, fraud and abuse of spending in every war, and the latest controversy in Iraq points once again at a politically well-connected Texas company, KBR Inc., based in Houston. Congress should press the Army hard for explanations.
A former Army civilian official, Charles M. Smith, has told The New York Times that in 2004 he refused to sign off on more than $1 billion in questionable charges from KBR. The charges had been questioned by the Defense Contract Audit Agency, which said they weren't credible.
But, Smith charged, KBR went over his head; he was suddenly replaced, and after a review by another outside contractor, the billings were approved.
Jeffrey Parsons, executive director of the Army Contracting Command, told the Times that Smith was not replaced because of pressure from KBR, but the issue was "discussed all the way up to the office of the secretary of defense."
Parsons said: "You have to understand the circumstances at the time (2003 and 2004). We could not let operational support suffer because of some other things."
That sounds like KBR had the Army over a barrel -- the Army needed the services KBR provided, such as feeding troops, providing them housing and other services, and if bogged down in a dispute over the $1 billion, KBR would start cutting back on its services. And apparently there was no other company that could take up the slack, at least not soon enough. The Army's solution appears to have been: "Just pay the bill and get on with it."
KBR denies doing anything wrong, and the controversy has not hurt its ability to keep contracting for the government -- it recently signed on for part of a $150 billion, 10-year contract with the Army for its services in Iraq.
KBR is no stranger to controversy, and it has friends in high places. The company used to be owned by Halliburton, another Texas company, whose chief executive from 1995 to 2000 was Dick Cheney, the vice president.
The unfamiliar letters in its name may give KBR a certain anonymity, but it is the direct corporate descendant of another Texas company that grew large and wealthy off political contacts and government contracts -- the old Brown & Root Inc.
Brown & Root prospered thanks, in part, to a close relationship with a young congressman representing Central Texas, Lyndon B. Johnson. It built highways, dams on the Colorado River, military bases in World War II and, later, took on major construction projects in Vietnam.
Brown & Root was eventually acquired by another large firm, Halliburton, and then merged with the engineering subsidiary of another acquisition to become Kellogg Brown & Root. Last year, Halliburton spun the company off and it became KBR -- still a huge company, with more than 50,000 employees and billions of dollars in contracts paid for by taxpayers.
According to U.S. Rep. Henry Waxman, D-Calif., chairman of the House Oversight and Government Reform Committee, KBR "has repeatedly gouged the taxpayer, and the Bush administration has looked the other way every time."
Smith's claims sound credible, and Congress -- more than a few members of whom ran on ringing promises to root out "waste, fraud and abuse" in government spending -- ought to get to the bottom of them.
Copyright 2008 The Austin American-Statesman
6 Comments so far
Show AllThe total amount of treasury compiled from taxpayers returns appears to simply go into the pot for every government official (elected or non elected) and every government contractor to help themselves to with approval all around. The tricky part seems to be who can skim the most. And, our duly elected officials just voted for more and more money to be given away. How thoughtful of them. How much money is switched back (under the table) to those who vote for the giant giveaways? Just curious, as obviously these elected officials are dumber than dirt or they know of the corruption and desire to maintain a bit for themselves.
Surely you don't mean to suggest that any of our "Representatives" in Washington are susceptible to bribes. Never a finer group of men/women was ever chosen to see to the People's requirements of government. Not a one
has ever taken a free cigar or kickbacks or pushed the federal bureaucracy to overlook shoddy workmanship or materials for body armor or cluster bomblets, ever, ask them! As for moral strength; it can be alleged that not one ever went near a toilet anywhere: that's why they behave so strangely sometimes(stopped up, you know).
Corruption everywhere is the single greatest cause of poverty everywhere.
Most members of Congress have taken so much money from so many different interests that those Congressmen have less than zero integrity. Their souls have been purchased lock, stock, and barrel. Hence they are completely empty inside and devoid of any higher principle of acting and thinking for the common good.
There really isn't any cause to expect any right action from Congress. They just gave more money for the wars.
They claim they're powerless. That may be right. And if it is right, it is simply because the US people do not demand from their government the very change they seek. Most people just scratch their heads and think, "Yes, we've got a problem, but what can we do—it's beyond my realm".
That it's "beyond my realm" is absolutely not true.
The disconnect between US people and their government is wider than the widest part of the Grand Canyon.
Any General contractor that's been in business for more than a year understands that a no bid contract awarded from state or federal government is the green light to charge as much as you possibly can until someone finally decides to say ---no no no, that seems a bit much. All with a nod and a wink as the contractor knows how it works. He'll be paying back those that got them there, either in the present or in the future or both. Remember it's the money, it's always the money and it really is not a surprise to many of us who have been in there.
Change the number of exemptions withdrawn from your pay to the maximum number (12, I believe). Time to start STARVING the beast. Quit filing taxes. Just refuse to cooperate with the system. Let's bring DOWN the whole gottdamned house of cards.
Graft, kick-backs and bonuses have always been a way of life. (Not that it's excusable) But nothing compares to this administration. The robber barons of the 1800's were pikers compared to these felons! Not only does the top brass take all, but underlings get their dirty, scummy hands in the muck. What Hypocracy, while we salute our flags, call our superiors, "sir", sing all kinds of Anthems, we are being raped, lied to and treated like farm fodder!
When are we going to wake up? When will the worm turn?