Halliburton Admits Cost Controls are Weak
Halliburton admitted in an internal memo that its cost controls for government contracts are "antiquated" and "weak" and its procurement "disorganized" and marked by "weak internal controls." The memo, which was leaked to the Wall Street Journal, contradicts the company's public statements which claim it has a "rigorous system of internal controls" for contracts in Iraq. The memo reportedly reveals the results of a study by 80 Halliburton managers the company calls "Tiger Team." Tiger Team examined whether the company fairly charges the government for its contracting work. According to the Journal, the study is "a frank admission that [Halliburton's] critics are voicing valid concerns about the possibility of overcharges under the company's massive contract to supply U.S. troops." Halliburton said it initiated the study because of the "unprecedented barrage of inquiries, accusations and political innuendos."