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Halliburton admitted that two of its KBR employees accepted $6.3 million in kickbacks from a Kuwaiti-based subcontractor. Halliburton's internal audit revealed that employees accepted kickbacks in exchange for providing Army supply contracts to the subcontractor. The company repaid the $6.3 million to the Army Materiel Command in January 2004 and fired the employees involved. The kickbacks only involved KBR's Army supply business under its LOGCAP contract with the U.S. government and are unrelated to the company's other government contracts. The Bush administration subsequently ignored the kickbacks and gave Halliburton another contract worth $1.2 billion. Republican Congressman and Chairman of the House Committee on Government Reform, Tom Davis, said, "It's incomprehensible that the [Bush] Administration could give Halliburton another billion-dollar contract without fully investigating such serious criminal wrongdoing."

"All of Halliburton's contracts with the government need to be terminated," said Sen. Frank Lautenberg (D-N.J). "This is a fatal blow to the company's credibility and the administration's ability to defend these contracts."

"This is the tip of the iceberg," said Congressman James P. McGovern (D-MA). "It's a real example of corruption involving companies that have received billions of dollars in contracts financed by US taxpayers."

More Information

AP: Halliburton Fires Workers for Allegedly Taking Kickbacks for Iraq Contract
San Francisco Chronicle: Halliburton Acknowledges Kickbacks in Iraq Contract
BBC: Halliburton admits $6m kickbacks
Boston Globe: Halliburton says employees got kickbacks on Iraq work
Congressman Waxman's letter to Committee on Gov't Reform