Secret email reveals multi-billion dollar no bid contract coordinated through Cheney

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http://www.time.com/time/magazine/article/0,9171,1101040607-644111,00.html

The Paper Trail
Did Cheney Okay a Deal?
By TIMOTHY J. BURGER AND ADAM ZAGORIN



Sunday, May. 30, 2004
Vice President Dick Cheney was a guest on NBC's Meet the Press last September when host Tim Russert brought up Halliburton. Citing the company's role in rebuilding Iraq as well as Cheney's prior service as Halliburton's CEO, Russert asked, "Were you involved in any way in the awarding of those contracts?" Cheney's reply: "Of course not, Tim ... And as Vice President, I have absolutely no influence of, involvement of, knowledge of in any way, shape or form of contracts led by the [Army] Corps of Engineers or anybody else in the Federal Government."

Cheney's relationship with Halliburton has been nothing but trouble since he left the company in 2000. Both he and the company say they have no ongoing connections. But TIME has obtained an internal Pentagon e-mail sent by an Army Corps of Engineers official—whose name was blacked out by the Pentagon—that raises questions about Cheney's arm's-length policy toward his old employer. Dated March 5, 2003, the e-mail says "action" on a multibillion-dollar Halliburton contract was "coordinated" with Cheney's office. The e-mail says Douglas Feith, a high-ranking Pentagon hawk, got the "authority to execute RIO," or Restore Iraqi Oil, from his boss, who is Deputy Defense Secretary Paul Wolfowitz. RIO is one of several large contracts the U.S. awarded to Halliburton last year.

The e-mail says Feith approved arrangements for the contract "contingent on informing WH [White House] tomorrow. We anticipate no issues since action has been coordinated w VP's [Vice President's] office." Three days later, the Army Corps of Engineers gave Halliburton the contract, without seeking other bids. TIME located the e-mail among documents provided by Judicial Watch, a conservative watchdog group.

Cheney spokesman Kevin Kellems says the Vice President "has played no role whatsoever in government-contract decisions involving Halliburton" since 2000. A Pentagon spokesman says the e-mail means merely that "in anticipation of controversy over the award of a sole-source contract to Halliburton, we wanted to give the Vice President's staff a heads-up."

Cheney is linked to his old firm in at least one other way. His recently filed 2003 financial-disclosure form reveals that Halliburton last year invoked an insurance policy to indemnify Cheney for what could be steep legal bills "arising from his service" at the company. Past and present Halliburton execs face an array of potentially costly litigation, including multibillion-dollar asbestos claims.


From the Jun. 07, 2004 issue of TIME magazine


You can't make this stuff up folks! :D :o
 

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http://www.guardian.co.uk/usa/story/0,12271,1228622,00.html

Email shows Cheney 'link' to oil contract

Suzanne Goldenberg in Washington
Tuesday June 1, 2004
The Guardian

The US vice-president, Dick Cheney, helped to steer through a huge contract for the reconstruction of Iraq's oil industry on behalf of his old firm, Halliburton, Time magazine reported yesterday.
The report, based on an internal Pentagon email, joins a steady stream of allegations of cronyism involving Halliburton. Since the fall of Saddam Hussein, the Houston company has won $17bn (£9bn) in contracts to rebuild Iraq, far outstripping its competitors.

Mr Cheney, who ran Halliburton for five years before he became George Bush's vice-president in 2000, has maintained that he severed all links to the company when he entered public life.

However, Time said it had obtained an internal email from a Pentagon official indicating that Mr Cheney's office had been intimately involved in awarding a multibillion-dollar contract for the restoration of Iraqi oil.

The email, dated March 5 last year, said that Douglas Feith, the undersecretary of defence for policy and an avid promoter of the war, had approved a contract with Halliburton "contingent on informing WH [the White House] tomorrow".

The email says that Mr Feith received authorisation for the Rio (Restore Iraqi Oil) contract from the deputy defence secretary, Paul Wolfowitz. The email, from an unidentified official with the Army Corps of Engineers, says: "We anticipate no issues, since action has been coordinated with the VP's office."

No other bids were sought, and Halliburton was awarded the contract.

A spokesman for Mr Cheney's office denied any connection to the contract. "The vice-president and his office have played no role in government contracting since he left private business to campaign for vice-president," in 1999, Kevin Kellems said.

But Mr Cheney has not severed his links with Halliburton. Last year, he received $178,437 in deferred compensation from the company.

Reports suggest that the process of awarding contracts has changed under the Bush administration. A report to the House of Representatives committee on government reform last week noted that $107bn in contracts had been awarded without open competition. Nearly three-quarters of those exclusive arrangements - worth about $88bn - involved work in Iraq, the report said. Halliburton has won a sizeable share of them
 
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