Halliburton paid $4 million to politicians for 600% gain on contracts since 2000
26 Sept., 2006
WASHINGTON, Sept. 26 (HalliburtonWatch.org) -- Halliburton spent $4.6 million since 2000 buying influence in Washington via campaign donations and lobbying, a HalliburtonWatch analysis reveals. ###
The board of directors and their spouses personally gave $828,701 to candidates for Congress and the presidency while Halliburton's political action committees gave $1.2 million, most of it donated to Republicans and political organizations with strong Republican ties.
The company spent an additional $2.6 million lobbying members of Congress, the White House and federal agencies.
Conclusion: Halliburton's $4.6 million in political arm-twisting since 2000 has paid-off magnificently as the company's government contracts ballooned by over 600 percent in value by the end of 2005, mostly because of the war in Iraq.
In 2000, Halliburton was the 20th largest federal contractor, receiving $763 million in federal contracts. By 2005, Halliburton had grown to become the 6th largest federal contractor, receiving nearly $6 billion in federal contracts during that year.
Between March 2003 and June 30, 2006, Halliburton received $18.5 billion in revenue from the federal government for the war in Iraq.
The company has seen its profits in government contracting almost quadruple to $330 million in 2005 compared to $84 million in 2004.
During one quarter in 2005, Halliburton's war profits skyrocketed by 284 percent.
War contracts, intensified violence in the Middle East and record oil prices helped quadruple the stock price between the March 2003 invasion of Iraq and March 2006. As a result, the board of directors together saw the value of their stock holdings in the company increase by over $100 million.
CEO David Lesar holds the largest number of shares of any Halliburton official, owning 844,928 common shares and share options as of March 1, 2006. The shares were worth $17.3 million as the troops first rolled into Baghdad in 2003. Three years later, on April 10, 2006, the shares were worth $66.8 million, for a $49.5 million gain. Lesar sold an additional 631,071 shares during the war at various stock prices for gross amounts totaling between $12.9 million on March 20, 2003, and $49.9 million on March 1, 2006.
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