| Halliburton, the oil services company formerly headed by US Vice-President Dick Cheney was awarded a $1.2bn (£660m) contract in Iraq three days after Pentagon auditors warned about "systemic" problems in its cost controls.
The warning was contained in a memo the Pentagon's defence contract audit agency sent on January 13 to the US Army Corps of Engineers, citing deficiencies in Halliburton's contracting proposals and questioning the company's ability to supply "fair and reasonable prices".
The company informed the Pentagon on January 15 that its Kellogg Brown & Root division had overcharged the US government by $6m on a separate contract to supply US troops. Despite the admission, the following day the Corps of Engineers gave KBR a $1.2bn contract to rebuild oilfields in southern Iraq.”
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