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Halliburton, a company headed by future Vice President Dick Cheney, announces a new agreement to provide technical services and drilling for Turkmenistan. The press release mentions, “Halliburton has been providing a variety of services in Turkmenistan for the past five years.” On the same day, a consortium to build a pipeline through Afghanistan is formed. It is called CentGas, and the two main partners are Unocal and Delta Oil of Saudi Arabia. (Halliburton 10/27/1997; CentGas 10/27/1997)
During the single vice-presidential debate of the campaign, between Republican Dick Cheney and Democrat Joseph Lieberman, Cheney makes a number of assertions about his business experience that Lieberman does not challenge. No specific question is asked about Cheney’s tenure as CEO of Halliburton, but one is asked by the moderator, PBS newscaster Jim Lehrer, about “partisanship.” In the words of authors Lou Dubose and Jake Bernstein: “Cheney used his answer to burnish a myth that largely exists to this day. In it, he stars as the triumphant CEO, a self-reliant insider-turned-outsider who competently and ethically grew his company while increasing shareholder value. While politically useful, it happens to be a lie.” In the debate, Cheney says: “I’ve been out of Washington for the last eight years and spent the last five years running a company [sic] global concern. And been out in the private sector building a business, hiring people, creating jobs. I have a different perspective on Washington than I had when I was there in the past.” Dubose and Bernstein will note that Lieberman, a pro-corporate politician himself, fails to challenge Cheney’s self-assessment. Lieberman does make one wry observation: when Cheney challenges the common wisdom that most Americans are financially better off now than at the beginning of President Clinton’s tenure, Lieberman retorts: “I think if you asked most people in America today that famous question that Ronald Reagan asked, ‘Are you better off today than you were eight years ago?’ Most people would say yes. I’m pleased to see, Dick, from the newspapers that you’re better off than you were eight years ago, too.” Cheney replies, “I can tell you, Joe, the government had absolutely nothing to do with it.” Dubose and Bernstein call Cheney’s retort “a whopper of a falsehood—and one more that Lieberman failed to dispute.” Cheney has become a multi-millionaire during his tenure at Halliburton, and will continue to receive compensation from the firm years after he becomes vice president. During Cheney’s five-year term as Halliburton CEO, the company had suffered due to what Fortune magazine will call his “poor leadership.” However, the large profits Halliburton made under Cheney came largely from government contracts. (Commission on Presidential Debates 10/5/2000; Dubose and Bernstein 2006, pp. 104-106)
Defense Secretary Donald Rumsfeld begins his vaunted transformation of the functions of the Defense Department by issuing the first in the “Anchor Chain” series of “snowflakes,” or unsigned memos from Rumsfeld. The memos are written by Rumsfeld and annotated and edited by, among others, Rumsfeld’s personal assistant Stephen Cambone, and Deputy Defense Secretary Paul Wolfowitz. The first memo is a sprawling, overarching combination of mission statement, fix-it lists, and complaints, reflective both of Rumsfeld’s sincere ambitions to cut through the bloated and unresponsive military bureaucracy, and his more personal desire to run the US military from his office. Rumsfeld fells that congressional oversight cripples the ability of the military to spend what it needs to on getting buildings built and weapons systems constructed. He complains that talented officers skip from one assignment to another every two years or so, too fast to “learn from their own mistakes.” He complains that the military “mindlessly use[s] the failed Soviet model: centralized government systems for housing, commissaries, healthcare and education, rather than using the private sector competitive models that are the envy of the world.” This apparently is the origin of the “privitization” of the military’s logistical systems that will come to fruition with Halliburton, Bechtel, and other private corporations providing everything from meals to housing for military personnel both in Iraq and in the US. Forgetting, or ignoring, the fact that the Defense Department has repeatedly demonstrated that it will squander billions if left to its own devices, he complains that Congressional oversight so hampers the department’s functions that the Defense Department “no longer has the authority to conduct the business of the Department. The maze of constraints on the Department force it to operate in a manner that is so slow, so ponderous, and so inefficient that whatever it ultimately does will inevitably be a decade or so late.” Without transforming the relationship between the Defense Department and Congress, he writes, “the transformation of our armed forces is not possible.”[O]ur job, therefore, is to work together to sharpen the sword that the next president will wield. (Woodward 2006, pp. 26-27)
Vice President Cheney’s National Energy Policy Development Group releases its energy plan. The plan, titled Reliable, Affordable, and Environmentally Sound Energy for America’s Future, warns that the quantity of oil imported per day will need to rise more than fifty percent to 16.7 million barrels by 2020. “A significant disruption in world oil supplies could adversely affect our economy and our ability to promote key foreign and economic policy objectives, regardless of the level of US dependence on oil imports,” the report explains. To meet the US’s rising demand for oil, the plan calls for expanded oil and gas drilling on public land and the easing of regulatory barriers to building nuclear power plants. (US President 5/16/2001, pp. 8.5 ; Associated Press 12/9/2002; Macalister et al. 1/23/2003)
Emphasis on Foreign Oil - The report places substantial emphasis on oil from the Persian Gulf region. Its chapter on “strengthening global alliances” states: “By any estimation, Middle East oil producers will remain central to world oil security. The Gulf will be a primary focus of US international energy policy.” (US President 5/16/2001, pp. 8.5 ) But it also suggests that the US cannot depend exclusively on traditional sources of supply to provide the growing amount of oil that it needs and will have to obtain substantial supplies from new sources, such as the Caspian states, Russia, Africa, and the Atlantic Basin. Additionally, it notes that the US cannot rely on market forces alone to gain access to these added supplies, but will also require a significant effort on the part of government officials to overcome foreign resistance to the outward reach of American energy companies. (Klare 4/30/2002)
Revamping of Clean Air Act - The plan also calls for a clarification of the New Source Review section of the Clean Air Act, which requires energy companies to install state-of-the-art emission control technology whenever it makes major modifications to its plants. The administration’s energy plan gives the Environmental Protection Agency 90 days to review NSR and determine whether it is discouraging companies from constructing or expanding power plants and refineries. It also instructs the attorney general to review current NSR litigation efforts against utility companies to determine whether those efforts are contributing to the country’s energy problems. “The outcome could determine whether the government drops some cases, approaches others more leniently, or even renegotiates settlements already reached,” the New York Times reports. (US President 5/16/2001, pp. 8.5 ; Jehl 5/18/2001)
Dodging the EPA - The representative of the Environmental Protection Agency (EPA) on the task force had blocked the recommendation of a technique called “hydraulic fracturing.” Sometimes called “fracking,” the technique, used to extract natural gas from the earth, often contaminates aquifers used for drinking water and irrigation. The recommendation was removed to placate the EPA official, then quietly reinserted into the final draft. Halliburton, Cheney’s former firm, is the US leader in the use of hydraulic fracturing. (Dubose and Bernstein 2006, pp. 18)
Cheney Stayed Largely behind the Scenes - Much of the task force’s work was done by a six-member staff, led by executive director Andrew Lundquist, a former aide to senators Ted Stevens (R-AK) and Frank Murkowski (R-AK). Lundquist served as the Bush-Cheney campaign’s energy expert, earning the nickname “Light Bulb” from the president. Lundquist will leave the Bush administration and become a lobbyist for such firms as British Petroleum, Duke Energy, and the American Petroleum Institute. Much of the report is shaped by Lundquist and his colleagues, who in turn relied heavily on energy company executives and their lobbyists. For himself, Cheney did not meet openly with most of the participants, remaining largely behind the scenes. He did meet with Enron executive Kenneth Lay (see April 17, 2001 and After), with officials from Sandia National Laboratories to discuss their economic models of the energy industry, with energy industry consultants, and with selected Congressmen. Cheney also held meetings with oil executives such as British Petroleum’s John Browne that are not listed on the task force’s calendar. (Abramowitz and Mufson 7/18/2007)
Controversial Meetings with Energy Executives - Both prior to and after the publication of this report, Cheney and other Task Force officials meet with executives from Enron and other energy companies, including one meeting a month and a half before Enron declares bankruptcy in December 2001 (see After January 20, 2001), Mid-February, 2001, March 21, 2001, March 22, 2001, April 12, 2001, and April 17, 2001). Two separate lawsuits are later filed to reveal details of how the government’s energy policy was formed and whether Enron or other players may have influenced it, but the courts will eventually allow the Bush administration to keep the documents secret (see May 10, 2005). (Associated Press 12/9/2002)
The Bush administration blocks the Environmental Protection Agency (EPA) from making any announcement about vermiculite and related problems in towns where it was mined. Vermiculite is dangerous because one of the substances it contains, tremolite, itself contains lethal levels of asbestos fiber and has killed or seriously sickened thousands of inhabitants of Libby, Montana, one of the towns where it was mined. EPA chief Christine Todd Whitman visits Libby at this time, although the vermiculite mine there was shut down in 1990. However, the problem is not confined to Libby; according to EPA records, over 16 billion tons of vermiculite have been shipped to 750 fertilizer and insulation manufacturers throughout the US, and the EPA estimates that between 15 million and 35 million US homes have been insulated with this toxic material. The EPA is thus confronted with an enormously grave problem. After the St. Louis Post-Dispatch breaks the story in late 2002 based on a leak from an unnamed whistleblower, former EPA chief William Ruckelshaus calls the actions of the White House “wrong, unconscionable.” The story becomes even more important when the reason for the White House block becomes known. Vice President Dick Cheney, the former CEO of Halliburton, is pressuring Congress to pass legislation that would absolve companies of any legal liability for claims arising from asbestos exposure. Halliburton itself is facing a tremendous number of asbestos liability claims. (Dean 2004, pp. 162-163)
Kellogg Brown & Root, a subsidiary of Halliburton, wins a 10-year no-bid contract to provide the Pentagon with support services in Iraq—everything from fighting oil-well fires to building military bases to feeding and housing soldiers. Vice President Dick Cheney is the former CEO of Halliburton. When he was defense secretary under George H. W. Bush, Cheney had pushed to outsource many of the military’s logistical and support functions to private contractors, part of what Vanity Fair will later term “a broader effort to transfer government functions of all kinds to the private sector.” (Murphy and Purdum 2/2009)
US Representative Cynthia McKinney (D-GA) calls for a thorough investigation into whether President Bush and other government officials may have been warned of the 9/11 attacks but did nothing to prevent them. She is the first national-level politician to do so. She states: “News reports from Der Spiegel to the London Observer, from the Los Angeles Times to MSNBC to CNN, indicate that many different warnings were received by the administration.… I am not aware of any evidence showing that President Bush or members of his administration have personally profited from the attacks of 9/11.… On the other hand, what is undeniable is that corporations close to the administration have directly benefited from the increased defense spending arising from the aftermath of September 11. The Carlyle Group, Dyn-Corp, and Halliburton certainly stand out as companies close to this administration.” (McKinney 4/12/2002) McKinney’s comments are criticized and ridiculed by other politicians and the media. For instance, Representative Mark Foley (R-FL) states, “She has said some outrageous things but this has gone too far.… Maybe there should be an investigation as she suggests—but one focused on her.” Senator Zell Miller (D-GA) says her comments were dangerous and irresponsible. (Eilperin 4/12/2002) An editorial in her home state calls her the “most prominent nut” promoting 9/11 “conspiracy theories.” (Atlanta Journal-Constitution 4/15/2002) One columnist says she is possibly “a delusional paranoiac” or “a socialist rabble-rouser who despises her own country.” (Parker 4/21/2002) White House Press Secretary Ari Fleischer says McKinney “must be running for the hall of fame of the Grassy Knoll Society.” (Eilperin 4/12/2002) One month after McKinney’s comments, the Bush administration comes under fire after reports reveal it had been warned five weeks before 9/11 about possible al-Qaeda plane hijackings, and McKinney claims vindication. She will lose reelection later in the year, but win her seat back in 2004. (Office of Congresswoman Cynthia McKinney 5/16/2002)
In Guantanamo, the 300 detainees (see April 28, 2002) being held in at Camp X-Ray are transferred to Camp Delta. Although cells at Camp Delta are even smaller than at Camp X-Ray (8 ft x 6 ft, 8 inches compared to 8 ft x 8 ft), (Williams 1/14/2003) the cells are now equipped with a flush toilet, a sink with running water and a metal bed frame. “There is indoor plumbing, exercise areas are better controlled, and detainees are out of the sun more,” Brig. Gen. Rick Baccus, the commander of Military Police at Guantanamo says. (Williams 1/14/2003) The new facility also has the advantage of being more secure. “We’ve a much more secure facility to house them in Camp Delta. For instance, the guards don’t have to escort them to the bathroom all the time and those types of things. That’s a great improvement in terms of how the guards have to deal with them on a daily basis.” (Williams 1/14/2003) Recreation time goes up from 5 minutes a day at Camp X-Ray to 15 minutes at Camp Delta. (Prince and Jones 3/12/2004) Use of Camp X-ray does not end. An undated Pentagon memo shows the camp is still used for isolation purposes between December 2002 and January 15, 2003. (US Department of Defense 1/2003 ) Still, according to a Pentagon adviser, around the middle of 2002, some high-security prisoners will enjoy their recreation time strapped into heavy, straitjacket-like clothing, with their arms tied behind them, goggles over their eyes and their heads hooded. Describing what he was told by a Pentagon official, investigative reporter Seymour Hersh writes in the Guardian of London: “The restraints forced [these prisoners] to move, if he chose to move, on his knees, bent over at a 45-degree angle. Most prisoners just sat and suffered in the heat.” (Hersh 9/13/2004) The Camp Delta facility was built by Brown & Root, a Halliburton subsidiary, which was awarded the contract even though it was estimated military engineers could do the job for about half the price. (Gerth and van Natta 7/13/2002)
After nearly two years of legal wrangling, the Bush administration releases financial and other records from the November-December 2000 campaign to the Internal Revenue Service. Those records include hundreds of pages of documents regarding the Bush campaign’s efforts to win the Florida recounts (see 9:00 a.m. and after, November 22, 2000). The George W. Bush recount committee spent $13.8 million on its efforts to influence the recount, while long-available documents from the Al Gore recount operation show that Gore spent about a quarter of that amount, $3.2 million. The Bush campaign spent more than that on lawyers—$4.4 million. The Bush records document some 250 paid staffers, payouts of $1.2 million to fly operatives to and from Florida, and about $1 million in hotel bills. Additionally, a fleet of corporate jets was provided to the recount operation, many of them paid for by Enron Corporation and its CEO Kenneth Lay, a prominent Bush backer. Other jets were provided by Halliburton, where Vice President Dick Cheney had served as chairman and CEO. (Parry 8/5/2002)
The US Army Corps of Engineers awards Halliburton subsidiary, Kellogg, Brown & Root (KBR), a sole-source monopoly contract to repair and operate Iraq’s oil infrastructure. The contract is awarded in secrecy without any competing bids from other qualified companies. Halliburton will eventually charge the government $2.4 billion for its work. The Defense Contract Audit Agency will find that about $263 million of these costs are either questionable or unsupported. Despite this, the US Army will pay Halliburton all but $10.1 million, or 3.8 percent, of the disputed costs. (Glanz 2/27/2006; US Congress 3/28/2006, pp. 3-4 )
Halliburton issues a press release declaring that it has won a contract from the US Army Corps of Engineers to extinguish oil well fires and do emergency repairs to Iraq’s oil infrastructure in post-invasion Iraq. The firefighting work will be subcontracted to Houston-based companies Boots & Coots International Well Control, Inc. and Wild Well Control, Inc. (Halliburton 3/24/2003)
Halliburton is paid $304,486,577 to import 191,965,150 gallons of gasoline into Iraq at an average price of $1.59 per gallon. This does not include the two to seven percent bonus the company will receive as part of its cost-plus contract, which will bring the total cost to between $1.62 and $1.70 per gallon. The Congressional Research Center will later report that during this time the wholesale cost of gas in the Middle East was only 71 cents per gallon, meaning that Halliburton was charging the government 91 to 99 cents for transporting a single gallon of gas to Iraq. Later, an expert interviewed by the staff of Congressman Henry A. Waxman will claim that the gas could have easily been transported into Iraq for 20 to 25 cents per gallon. Another will claim that it could have been done for as little as 10 cents per gallon. (US Congress 10/15/2003, pp. 3-4 )
In a letter to US Congressman Henry A. Waxman, the Commanding Lieutenant General of the US Army, Robert B. Flowers, says that the contract awarded to Halliburton subsidiary Kellogg, Brown & Root (KBR) also includes work concerning the “operation” of Iraqi oil facilities and “distribution” of Iraqi oil products. (Flowers 5/2/2003 )
CNN reports that despite US government prohibitions (see March 15, 1995 and May 6, 1995) banning US citizens and business from doing business with Iran, dozens of US companies are actively conducting business there, including Halliburton, ConocoPhillips and General Electric. The companies are using a complicated array of corporate loop-holes and off-shore accounts to maneuver around US laws. Michael Ledeen, interviewed by CNN, says these companies are aiding terrorism. “The oil companies are a wholly owned subsidiary of the government… the government is the primary sponsor of terrorism,” he says, additionally claiming that “they have separate organizations that are used to funnel oil profits and other profits into the terror network.” (CNN 2/10/2003; CNN 5/29/2003)
The Bush administration installs L. Jean Lewis as the Defense Department’s inspector general. Her office investigates fraud and audits Pentagon contracts, including the billion-dollar arrangements with companies like Halliburton and Bechtel. While the post is traditionally non-partisan, Lewis is a strongly partisan Republican. Lewis is best remembered as the driving force behind the Resolution Trust Corporation (RTC)‘s relentless investigation of then-President Bill Clinton over a parcel of land called Whitewater. FBI investigators refused to pursue Lewis’s work, calling it sloppy, biased, and incompetent. Lewis repeatedly lied under oath during the Whitewater investigation before bringing the questioning to a halt by suddenly “fainting.” Her partisanship was on display throughout her career with the RTC, having once proposed selling coffee cups and T-shirts with the slogan “Presidential B_TCH” emblazoned under a photo of Hillary Clinton out of the RTC offices, and calling President Clinton a “lying b_stard.” (Lewis claimed under oath that neither instance indicated any bias she might have towards the Clintons or towards Democrats.) She now has the prime responsibility for ensuring that billions of tax dollars are spent wisely by the government and its private contractors. Lewis says that, although her employers are well aware of her background, “I would prefer to think it was my ability and skills they were interested in.” (Newsweek 9/14/2003; Carter 2004, pp. 71; Conason 3/18/2007)
The Pentagon’s Defense Contract Audit Agency sends a draft audit report to Halliburton subsidiary Kellogg, Brown, & Root (KBR) claiming that the firm overcharged the US military as much as $61 million for fuel deliveries into Iraq. The report says that KBR charged an average of $2.64 per gallon, more than twice the price others were paying. The DCAA also says the company has been slow to provide cost estimates for its projects in Iraq. KBR has given the US government estimates for only 12 orders. As of this date, 69 are overdue. (Jehl and van Natta 12/12/2003)
The US Army Corps of Engineers (US ACE) issues a waiver relieving Halliburton of the obligation to provide the government with “cost and pricing data” for the fuel it sells to the US military. The company was recently accused of overcharging the military as much as $61 million for fuel deliveries into Iraq (see December 5, 2003). The waiver will make it difficult for auditors to determine whether Halliburton or its Kuwaiti subcontractor overcharged the US government. (US Congress 1/6/2004 )
Despite the fact that the Logistics Civil Augmentation Program (LOGCAP) contract explicitly prohibits Halliburton and its subcontractors from subcontracting security services, Halliburton subcontractor ESS hires the firm Blackwater USA to provide security through Regency Hotel, another subcontractor. Each of the subcontractors involved in this arrangement will charge a substantial mark-up for the security personnel. Blackwater pays its security guards $600 per day and charges Regency $815 per day plus overhead costs, while Regency charges ESS between $1200 and $1500 per day for each security guard. It is not known what ESS charges Halliburton or what the final bill is for the taxpayer. Halliburton refuses to disclose this information to Congress. Congressman Henry Waxman, in a letter to Secretary of Defense Donald Rumsfeld, will suggest that Halliburton’s invoice to the US government for these services was not legal and should not have been paid. (Regency Hotel & Hospital Company 3/12/2004 ; Neff and Price 10/24/2004; Neff and Price 10/28/2006; US Congress 12/7/2006 )
The head of the International Advisory and Monitoring Board, Jean-Pierre Halbwachs, says the Bush administration is withholding information regarding the more than $1 billion in contracts awarded to Halliburton and other companies in Iraq. This information is believed by UN-sanctioned auditors to confirm that these contracts were won without competitive bidding. The White House has rejected requests for this information since March, and will not produce a list of other companies that have obtained such contracts. (The Moscow Times 7/19/2004) The IAMB, a multi-agency organization in place to oversee the Coalition Provisional Authority’s disbursements from the Development Fund for Iraq, later discovers that over a hundred contracts involving billions of dollars were in need of investigation and possible criminal prosecution. They also discover that $8.8 billion that passed through the new Iraqi government ministries under CPA control is unaccounted for, while an additional $3.4 billion appropriated by Congress for development eventually became earmarked to fund “security.” The IAMB, once established, was forced to spend months finding auditors acceptable to US authorities. These auditors, appointed in April 2004, are then stonewalled. It is believed that the Bush administration wished to stall until the end of June 2004, at which time the CPA would no longer be extant and Paul Bremer, the pro consul and head of the CPA, would not be answerable to the press. The auditors’ report reveals that the CPA hadn’t kept accounts of the hundreds of millions of dollars of cash in its vault, had awarded contracts worth billions of dollars to American firms without tender, and had no idea what was happening to the money from the Development Fund for Iraq (DFI), which was being spent by the interim Iraqi government ministries. (Guardian 7/7/2005)
Ben Carter, an employee for Halliburton subsidiary Kellogg, Brown, & Root (KBR), serves as the foreman of the water purification unit at Camp Ar Ramadi, a US military base also known as “Junction City.” At the base, both potable and non-potable water is supplied for different purposes. Non-potable water, despite not being used for drinking, is expected to meet certain safety standards so that US troops can use it for bathing, showering, shaving, laundry, and cleaning. After another KBR employee discovers larvae swimming in a toilet bowl, Carter does a test and discovers that there is no chlorine present in the non-potable water. When he tests the non-potable water tank, he is shocked to find out that “the water in the tank tested negative for chlorine; that the access lid of the tank was not in place, let alone secure, and the air vents to the tank were turned upward and left unscreened; leaving the water supply vulnerable to contamination from dust, insects, rodents or even enemy attack.” He reports his findings and urges the military to chlorinate their water tanks. But he is told by the KBR site commander that the water is not his concern. Carter is frequently hindered by higher-ups in his attempts to make sure that the water is properly purified and eventually leaves Iraq in frustration. (Democratic Policy Committee 1/23/2006, pp. 6-8 )
General Electric (GE) follows Halliburton and ConocoPhillips, announcing that the company will no longer accept business from Iran (see May 29, 2003). “Because of uncertain conditions related to Iran, including concerns about meeting future customer commitments, we will not accept any new orders for business in Iran effective Feb. 1,” explains Gary Sheffer, a GE spokesman. “This moratorium on new orders will be re-evaluated as conditions relating to Iran change.” (Christoffersen 2/2/2005; Citrano 2/2/2005) Under current US law, companies are barred from doing business with nations that the US State Department has said are sponsors of terrorism. However the law does not prohibit a company’s foreign subsidiaries from engaging in such business. (BBC 7/20/2004; Christoffersen 2/2/2005)
Bunnatine H. Greenhouse, the highest ranking contracting official at the US Army Corps of Engineers (USACE), testifies before the Democratic Policy Committee. She criticizes how the Restore Iraqi Oil (RIO) contract was awarded to Halliburton subsidiary Kellogg, Browning, & Root (KBR). “I can unequivocally state that the abuse related to contracts awarded to KBR represents the most blatant and improper contract abuse I have witnessed during the course of my professional career.” She notes that there were several irregularities in the USACE’s contract with KBR to restore Iraqi oil:
The independence of the USACE contracting process was severely compromised. The Office of the Secretary of Defense (OSD) controlled “every aspect of the RIO contract,” even after responsibility for the contract was delegated to the US Army.
She questioned why the Defense Department had delegated executive agency authority for the RIO contract to the Corps when it has no competencies related to oil production. Such work was outside the scope of its congressionally-mandated mission.
The Defense Department paid KBR to prepare for oil production restoration work before the RIO contract was even awarded. The payments were made under the already operational Logistics Civil Augmentation Program (LOGCAP), the scope of which did not include such work. Greenhouse said that the US government should have signed a new contract with KBR for this work. When she questioned the legality of these payments, she was incorrectly told that a new contract was being issued. (Democratic Policy Committee 6/27/2005 )
Bunnatine H. Greenhouse, who earlier criticized the US Army Corps of Engineers’ sole-source contract with Halliburton at a public hearing (see June 27, 2005), is demoted from her position as Principal Assistant Responsible for Contracting (PARC). Greenhouse, who was known for her steadfast adherence to regulations enforcing fair competition, received high performance ratings at the beginning of her tenure, which began in 1997. But after she began objecting to the contracts being awarded to Halliburton subsidiary Kellogg, Brown, & Root (KBR), her reviews became negative. (Eckholm 8/29/2005; Democratic Policy Committee 9/16/2005, pp. 8-9 )
The Chicago Tribune publishes a multi-part series titled, “Pipeline to Peril,” summarizing its investigation of the human trafficking network that is supplying US military bases and private contractors in Iraq with cheap labor. The articles detail how Halliburton subsidiaries such as KBR are making use of over 200 illicit international human trafficking brokers for supplying cheap labor for the Iraq war effort, mainly from impoverished Asians. The brokers are often deceitful in their recruiting practices. For instance, they are reported to have promised jobs in luxury hotels in Jordan for the potential workers. The workers are required to pay hefty broker fees up front, and once trapped at halfway points in Jordan by those initial fees, they are informed that that they will be working in Iraq and their passports are confiscated. The article gives an example of twelve Nepalese workers who were kidnapped by Iraqi insurgents at gunpoint and later killed while traveling in an unprotected caravan across Iraq. (Simpson 10/9/2005)
The Department of Homeland Security awards a contract to Halliburton subsidiary Kellogg, Brown & Root to establish what the $385 million contract describes as “temporary detention and processing capabilities.” Journalist Christopher Ketcham will comment: “The contract is short on details, stating only that the facilities would be used for ‘an emergency influx of immigrants, or to support the rapid development of new programs.’ Just what those ‘new programs’ might be is not specified.” (Ketcham 5/2008)
President Bush signs the 2007 Defense Authorization Act into law. The bill contains a provision that allows the president to more easily declare “martial law” in the US. If Bush or a successor does so, the bill gives the administration the ability to strip much of state governors’ powers over their National Guards and relegate that authority to the federal government. Congress is likely to challenge that provision in the future. The bill makes significant changes to the Insurrection Act that allows the president to invoke the Act during events such as natural disasters, and thereby suspend the 1878 Posse Comitatus Act that prevents the US military from acting in a law enforcement capacity. Senator Patrick Leahy (D-VT) says, “[W]e certainly do not need to make it easier for Presidents to declare martial law. Invoking the Insurrection Act and using the military for law enforcement activities goes against some of the central tenets of our democracy.” (US Senate 9/19/2006) The relevant section of the bill is entitled “Use of the Armed Forces in Major Public Emergencies.” This section states that “the President may employ the armed forces, including the National Guard in Federal service, to restore public order and enforce the laws of the United States when, as a result of a natural disaster, epidemic, or other serious public health emergency, terrorist attack or incident, or other condition in any State or possession of the United States, the President determines that domestic violence has occurred to such an extent that the constituted authorities of the State or possession are incapable of… maintaining public order, in order to suppress, in any State, any insurrection, domestic violence, unlawful combination, or conspiracy.” (US Congress 9/19/2006) GlobalResearch’s Frank Morales will write that the new law allows the federal government to, if it chooses, “commandeer guardsmen from any state, over the objections of local governmental, military, and local police entities; ship them off to another state; conscript them in a law enforcement mode; and set them loose against ‘disorderly’ citizenry….” Under the new law, the federal government may more easily order National Guard troops to round up and detain protesters, illegal aliens, “potential terrorists,” and just about anyone else, and ship them off to detention facilities. Those facilities were contracted out for construction to KBR, a subsidiary of Halliburton, in January 2006, according to the Journal of Counterterrorism and Homeland Security International, at a cost of $385 million over five years. The Journal noted that “the contract is to be executed by the US Army Corps of Engineers… for establishing temporary detention and processing capabilities to augment existing [immigration] Detention and Removal Operations (DRO)—in the event of an emergency influx of immigrants into the US, or to support the rapid development of new programs.” (Morales 10/29/2006) Virtually no Congressional lawmakers seriously objected to the bill’s provision during debate. One of the few exceptions is Leahy, who will, six weeks later, sharply criticize the provision during debate over a separate piece of legislation. Leahy will say, “Using the military for law enforcement goes against one of the founding tenets of our democracy, and it is for that reason that the Insurrection Act has only been invoked on three—three—[occasions] in recent history. The implications of changing the Act are enormous, but this change was just slipped in the defense bill as a rider with little study. Other congressional committees with jurisdiction over these matters had no chance to comment, let alone hold hearings on, these proposals.… This is a terrible blow against rational defense policy-making and against the fabric of our democracy. Since hearing word a couple of weeks ago that this outcome was likely, I have wondered how Congress could have gotten to this point.… [I]t seems the changes to the Insurrection Act have survived… because the Pentagon and the White House want it.… Because of this rubberstamp Congress,… [w]e fail the National Guard, which expects great things from us as much as we expect great things from them. And we fail our Constitution, neglecting the rights of the States, when we make it easier for the president to declare martial law and trample on local and state sovereignty.” (US Senate 10/29/2006)
After reviewing $57 billion worth of Iraq reconstruction and troop support contracts through September 2006, auditors from the Defense Contract Audit Agency (DCAA) inform the House Committee on Oversight and Government Reform that contractors in Iraq submitted about $5.1 billion in unsupported costs (“unreasonably high”) and $4.9 billion in questionable costs (for which contractors lack proper documentation). About $2.7 billion of these unsupported or questionable billings are from Halliburton alone. (US Congress 2/15/2007 )
Private contractors paid by US firms outnumber US troops in Iraq, according to newly released figures from the State and Defense departments. Over 180,000 civilians, including Americans, foreign citizens, and Iraqis, are working under US contracts in Iraq, compared to about 160,000 soldiers and several thousand civilian government employees stationed in Iraq. The Los Angeles Times reports, “The total number of private contractors, far higher than previously reported, shows how heavily the Bush administration has relied on corporations to carry out the occupation of Iraq—a mission criticized as being undermanned.” The Brookings Institute’s Peter Singer says, “These numbers are big. They illustrate better than anything that we went in without enough troops. This is not the coalition of the willing. It’s the coalition of the billing.” The numbers of contractors include:
43,000 foreign contractors;
about 118,000 Iraqis.
These numbers are not complete; private security contractors, hired to protect government officials and buildings, were not fully counted in the survey. According to some firms’ figures, about 30,000 security personnel work in Iraq, sometimes fighting alongside—or independent of—military forces. All these employees working for private contractors are paid with US tax dollars. Military officials say contractors cut costs while allowing troops to focus on fighting rather than on other tasks. “The only reason we have contractors is to support the war fighter,” says Gary Motsek, the assistant deputy undersecretary of defense who oversees contractors. “Fundamentally, they’re supporting the mission as required.” But some are critical, noting that the US government has relied far more heavily on contractors in the Iraq war than in any other conflict in American history. Critics note that troops and their missions can be jeopardized if contractors, functioning outside the military’s command and control, refuse to make deliveries of vital supplies under fire. Just such an occurrence happened in 2004, when US forces were forced to endure food rationing after delivery drivers refused to ferry supplies into a combat zone. And the government does not keep centralized track of the number or location of contractors operating in Iraq, though the US Central Command (CENTCOM) has recently bowed to pressure from Congress and begun a census of the number of contractors working on US and Iraqi bases to determine how much food, water, and shelter is needed. The corporation with the single largest presence in Iraq is KBR, which was the Halliburton Co. subsidiary Kellogg, Brown, and Root until early 2007. KBR provides logistical support to US and Iraqi troops, and holds the single biggest contract in Iraq, employing nearly 14,000 US workers. Other large employers of Americans in Iraq include L-3 Corporation, which provides translators to troops, and engineering firm ITT. The companies that have drawn the most attention are the private security firms such as Blackwater, Triple Canopy, and Erinys. Military policy experts say these contractors’ jobs should be done by servicemen, and point out the number of times security forces have engaged in firefights with Iraqi insurgents. “We don’t have control of all the coalition guns in Iraq. That’s dangerous for our country,” says William Nash, a retired Army general and reconstruction expert. The Pentagon “is hiring guns. You can rationalize it all you want, but that’s obscene.” Others point to the almost-complete lack of governmental accountability; the Times notes that “[a]lthough scores of troops have been prosecuted for serious crimes, only a handful of private security contractors have faced legal charges.” (Miller 4/7/2004) (See July 3, 2007 and July 5, 2007.)
Halliburton Co agrees to pay a $559 million fine to end an investigation of its former KBR subsidiary if the US government approves the settlement. KBR, formerly Kellogg Brown & Root, has long been accused of violating anti-bribery laws by paying kickbacks to Nigerian officials in return for “sweetheart deals” involving Nigeria’s oil and natural gas fields. The fine, if paid, will be the largest penalty in history against a US company for violations of the Foreign Corrupt Practices Act (FCPA); the settlement would allow Halliburton to avoid having a government monitor put in place, but would require the company to hire an independent consultant to assess its compliance with anti-bribery laws. Halliburton would pay $382 million to the Department of Justice and $177 million to the Securities and Exchange Commission in “disgorgement.” KBR, which has become independent of Halliburton since the incidents in question, refuses to comment on the settlement. The government’s probe of Halliburton/KBR goes back over 20 years, to the construction and expansion of a gas liquefaction facility at Bonny Island, Nigeria. Halliburton has admitted that its agents probably bribed Nigerian officials, and former KBR CEO Albert Stanley has already pled guilty to charges stemming from the Bonny Island bribery scheme. Former Vice President Dick Cheney was Stanley’s immediate supervisor when Cheney was CEO of Halliburton. (Reuters 1/26/2009)
Journalist John Hamilton publishes the results of a series of interviews with Byron Williams, who is charged with multiple counts of attempting to murder police officers from a shootout with Oakland, California, Highway Patrol officers (see July 18, 2010 and After). Williams has said that he targeted a progressive charitable foundation in San Francisco, the Tides Foundation, because of its liberal policies, and has said he intended to “start a revolution by traveling to San Francisco and killing people of importance at the Tides Foundation and the ACLU.” Since his arrest, Williams has retained Hamilton to be his “media advocate.”
Williams and Fox's Beck - Williams told Hamilton that his primary political influence and informational source is Fox News talk show host Glenn Beck. Williams had Hamilton watch specific broadcasts of Beck’s shows to glean information about what Williams describes as an intricate conspiracy between President Obama, liberal philanthropist George Soros (see August 8, 2006 and February 2007), Brazilian oil company Petrobras, and BP, the corporation responsible for triggering the Gulf oil disaster. Williams also cites right-wing pundit David Horowitz (see August 5, 2003 and November 30, 2004) and right-wing conspiracist Alex Jones (see July 24, 2009) as other influences. The progressive media watchdog organization Media Matters notes that Beck spoke 29 times about the Tides Foundation in the 18 months leading up to Williams’s shooting spree, sometimes at length; other pundits rarely mentioned the organization, if at all, during that same time period. Williams defends Beck, saying that the talk show host advocates non-violence and merely “confirm[ed]” his belief in the conspiracy. “Beck would never say anything about a conspiracy, would never advocate violence,” Williams told Hamilton. “He’ll never do anything… of this nature. But he’ll give you every ounce of evidence that you could possibly need.” Beck, he says, is “like a schoolteacher on TV. You need to go back to June—June of this year, 2010—and look at all his programs from June, and you’ll see he’s been breaking open some of the most hideous corruption.” In that month, Beck advised his viewers to stop a Democratic-orchestrated “march towards Communism” by “shoot[ing]” Democrats such as Speaker of the House Nancy Pelosi (D-CA) “in the head (see June 9, 2010).
Genesis of a Shootout - Williams moved to his childhood home in Groveland, California, in 2007 after serving a prison sentence for a 2001 bank robbery. Williams has an extensive criminal record, and has been convicted of assault, property destruction, hit-and-run, and drunken driving. He lived with his mother during that time, unable to find steady work, and growing increasingly depressed and fascinated with right-wing radio and television. His neighbor, Tom Funk, told Hamilton of Williams’s profanity-laden tirade on the night of November 4, 2008, after Obama won the presidency. He remembered Williams shouting what he calls racist, drunken threats after the news of Obama’s victory was announced, saying: “He was up there cussing and saying that America is not going right by having a black president. He was using words he shouldn’t be saying after 9/11, because it would have put him in jail. Threatening words towards the president.” In the days before and after the election, Funk said, Williams liked to listen to radio talk show host Michael Savage (see January 10, 2008, March 13, 2008, and November 10, 2008). Hamilton found transcripts of Savage’s radio broadcasts during that time; Savage held forth about the “bloodbath coming to America” should Obama be elected, and predicted that the nation was on “the verge of a Marxist revolution in the United States of America. You have a naked Marxist, America-hating, white-hating [Democratic] party—wing of the party—about to seize power. And you don’t even know it.” Hamilton then interviewed Williams’s mother Janice, who drives an SUV with “Palin 2012” bumperstickers on it. Williams’s mother told Hamilton that in phone calls and a letter to her, her son “basically said: ‘I’m sorry, I never intended to hurt anyone. I got really angry and lost my head.’” She said she did not believe her son would actually have attacked either the ACLU or the Tides Foundation. She also denied that her son shouted racial imprecations after Obama’s election, saying: “I read one account that he used the n-word. I don’t believe that. The neighbors told that to the media, but they just wove that out of whole cloth. I don’t care how loud anyone here gets, there’s no way anyone over there could have heard anything that far away. It’s just someone seeking publicity.” She said her son does not tolerate alcohol well, because he is partly “American Indian… [t]hat’s why he can’t drink.” The day of the shooting, she “found 18 or 20 beer bottles by the sink.” Her son is angry, she told Hamilton, because of “the federal government. And the shadow government that operates behind the scenes, manipulating things.” She said she agreed with many of her son’s concerns about government intrusion: “I believe in limited government. The government should be there solely for the purpose of protecting our borders. All the other stuff is add-ons. This whole Obamacare thing has everything to do with consolidating government. There’s no concern about the little people. Having said that, my hope was to retake the country peacefully, through the ballot box.” She denied that her son was influenced by Beck, Savage, or any other right-wing commentator, saying: “All the reporters who came out here last month were blaming what he did on Rush [Limbaugh], Glenn Beck, and the tea party. Why would you blame the messenger? If Glenn Beck tells us something, and everyone gets upset about it, why blame him?” She called the Tides Foundation “a money laundering scheme for the radical left that didn’t want their names attributed to what they were doing,” a charge first leveled by Beck. She did confirm that her son was a Beck fan: “Yes, he liked Glenn Beck, but he didn’t feel he went far enough. He’d take it only so far, but stopped short.” She added that almost everyone she had heard from after the shooting supported her son’s position: “I had only one hate call out of all the thousands of people who heard about this case. Most people have expressed support—not for the act, but for the frustration behind it.”
Jailhouse Meetings - Hamilton talked to Williams in the visiting area of the Santa Rita Jail in Dublin, California, twice over a period of two weeks. Williams told Hamilton that he worried about being portrayed as an “extremist,” and said he should probably not discuss “that incident”—the shooting—because of his pending criminal trial. Williams was loquacious about his political views; he said, “My big thing was the oil rig, the Deepwater Horizon,” referring to the immense BP oil spill in the Gulf of Mexico. “I’ve uncovered enough evidence to—I think in a court of law it could bring [BP CEO] Tony Hayward, Barack Obama, George Soros, and members of Halliburton indicted for treason.” Williams believes that the oil spill was deliberate, plotted by Soros. “It was a sabotage,” Williams explained. “Hayward and [Wall Street financial firm] Goldman Sachs sold their stock, which was depreciating, two weeks before the spill. Soros invested $1 billion of his own money into Petrobras. Soros has the Tides Foundation and the Tides fund. He funnels billions of donated dollars into the fund, which he uses for all kinds of nefarious activities.… Obama sent 2 billion of taxpayer dollars to Petrobras for deep water oil exploration, while holding a moratorium on deepwater exploration in the US. Once you see this pattern—it’s fishy stuff.… Halliburton, whose job was to seal the well—two days before the explosion, they bought an oil spill clean-up company.… When I saw the news was dropping the issue like a hot potato, I became infuriated.” He concluded: “The bottom line is that George Soros is the financier of Obama. And Obama has a clear agenda: First he did the health care reform. After that, it was all about energy. He wants to impose the worst tax ever conceived: a cap-and-trade system on carbon emissions. Think of it. Even your breathing could be taxed, because you give off greenhouse gases. That’s why I did what I did. There are not a lot of people fighting back. I don’t see a response.” Williams evoked the Civil War by asking why Gulf Coast residents did not rise up in arms about what he says was a conspiracy to destroy their shoreline for Soros’s profit. “What ever happened to the spirit of the South, of the Confederacy in the Civil War?” Williams summed up the plot as he sees it: “What I see here is a plan to bring the country down.”
Sources of Information - Asked where he gets his information, Williams responded: “Alex Jones. PrisonPlanet.com is his Web site. Also, DiscoverTheNetworks.” Hamilton identifies Williams’s sources: “Jones is a conspiracist and repeat Fox News guest who mingles dire warnings of the ‘New World Order’ (see September 11, 1990) with stories of government complicity in the 9/11 attacks. DiscoverTheNetworks is a Web site claiming to track ‘the individuals and organizations that make up the left.’ It’s run by David Horowitz, a former leftist who has reinvented himself as a right-wing propagandist.” Williams then named Beck as another major source of his information and said Beck is “like a schoolteacher” who uses his chalkboard to great effect. “I collect information on corruption,” Williams said. “I’ve been at it for some time.… Our media accepts the false reports and downplays the conspiracy theories.… A public that is aware of corruption can oppose the corruption. A public kept in the dark simply passes it by.” Fox News, Williams said, is the only television news outlet that is not “censored,” he said. “So perhaps Fox has broken away from the mold.” Aside from its presumably independent status, Williams added: “There’s only one conservative channel. That’s Fox. All the other ones are all liberal channels.” Williams stated that he watched Fox because of Beck, and not vice versa: “I would have never started watching Fox News if it wasn’t for the fact that Beck was on there. And it was the things that he did, it was the things he exposed that blew my mind. I said, well, nobody does this.” Williams told Hamilton to “go back to June—June of this year, 2010—and look at all his programs from June. And you’ll see he’s been breaking open some of the most hideous corruption. A year ago, I was watching him, and it was OK, he was all right, you know?… But now he’s getting it.” Williams said that he believes Beck knows more than he is willing to tell. Referring to the Gulf Oil spill, Williams said: “This is what he won’t do, Beck will not say it was a contracted hit. But he’ll give you every ounce of evidence you can possibly need to make that assumption yourself.… You see what I mean?… That’s why he downplays the 9/11 truthers. He talks bad about them.” Williams then retold some conspiracy theories that he apparently believes that Beck seems to dismiss, including the Alex Jones-propagated idea that the US government was responsible for the 9/11 attacks. Of his various conspiratorial beliefs, he advised Hamilton: “Think like a conspiracy theorist. Except don’t use the word ‘theory.’ Because the conspiracies are not theories. The official report is the lie; the conspiracy is the truth.” Beck’s mission, Williams said, is to “expose” progressives and “leftists” who are endangering American democracy.
Ties to Tides - Beck is the source from which Williams first learned about the Tides Foundation, which he believes is at the heart of the Soros/Obama plan to destroy America. Beck himself has said of the Tides: “The chalkboard was brought up… for the Tides Foundation. I think that might have been the first time we used it.” His efforts to “expose” Tides “was the first time that I really realized its success—Tides Foundation and ACORN (Association of Community Organizations for Reform Now). Because you can map it all out. And I know that they make fun of me for it, but that’s—that’s the difference.… Tides was one of the hardest things that we ever tried to explain. And everyone told us that we couldn’t. It is the reason why the blackboard really became what the blackboard is. It is because I was trying to explain Tides and how all of this worked.” Beck has repeatedly, and falsely, labeled the organization as “George Soros’ Tides Foundation,” which he has suggested is part of a liberal plot to “create mass organizations to seize power.” Tides, he said, is a “shady organization” that funnels money to “some of the most extreme groups on the left.” Beck has asserted that Tides is “involved in some of the nastiest of the nasty.” In the 18 months preceding Williams’s shooting spree, Beck attacked Tides 29 times on his Fox show. (Hamilton 10/11/2010)
The Republican National Committee (RNC) files a court brief calling the federal ban on direct corporate donations to candidates unconstitutional, and demanding it be overturned. Such direct donations are one of the few restrictions remaining on wealthy candidates wishing to influence elections after the 2010 Citizens United decision (see January 21, 2010). The brief is in essence an appeal of a 2011 decision refusing to allow such direct donations (see May 26, 2011 and After). The RNC case echoes a request from Senator Mike Lee (R-UT) that he be allowed to form and direct his own super PAC (see November 23, 2011), and recent remarks by Republican presidential frontrunner Mitt Romney (R-MA) calling for donors to be allowed to contribute unlimited amounts to candidates (see December 21, 2011). The RNC brief claims: “Most corporations are not large entities waiting to flood the political system with contributions to curry influence. Most corporations are small businesses. As the Court noted in Citizens United, ‘more than 75 percent of corporations whose income is taxed under federal law have less than $1 million in receipts per year,’ while ‘96 percent of the 3 million businesses that belong to the US Chamber of Commerce have fewer than 100 employees.’ While the concept of corporate contributions evokes images of organizations like Exxon or Halliburton, with large numbers of shareholders and large corporate treasuries, the reality is that most corporations in the United States are small businesses more akin to a neighborhood store. Yet § 441b does not distinguish between these different types of entities; under § 441b, a corporation is a corporation. As such, it is over-inclusive.” Think Progress legal analyst Ian Millhiser says the RNC is attempting to refocus the discussion about corporate contributions onto “mom and pop stores” and away from large, wealthy corporations willing to donate millions to candidates’ campaigns. If the court finds in favor of the RNC, Millhiser writes: “it will effectively destroy any limits on the amount of money wealthy individuals or corporation[s] can give to candidates. In most states, all that is necessary to form a new corporation is to file the right paperwork in the appropriate government office. Moreover, nothing prevents one corporation from owning another corporation. For this reason, a Wall Street tycoon who wanted to give as much as a billion dollars to fund a campaign could do so simply by creating a series of shell corporations that exist for the sole purpose of evading the ban on massive dollar donations to candidates” (see October 30, 2011). (United States of America v. Danielcytk and Biagi 1/10/2012 ; Millhiser 1/11/2012) The RNC made a similar attempt in 2010, in the aftermath of Citizens United; the Supreme Court refused to hear an appeal of its rejection. (Liptak 5/3/2010; Tom Goldstein 5/14/2012) Over 100 years of US jurisprudence and legislation has consistently barred corporations from making such unlimited donations (see 1883, 1896, December 5, 1905, 1907, June 25, 1910, 1925, 1935, 1940, March 11, 1957, February 7, 1972, 1974, May 11, 1976, January 30, 1976, January 8, 1980, March 27, 1990, March 27, 2002, and December 10, 2003). Shortly after the Citizens United ruling, RNC lawyer James Bopp Jr. confirmed that this case, like the Citizens United case and others (see Mid-2004 and After), was part of a long-term strategy to completely dismantle campaign finance law (see January 25, 2010).