Halliburton sales to 'terrorist' nations might be illegal
12 Aug. 2004
WASHINGTON, Aug. 12 (HalliburtonWatch.org) -- A former subsidiary of Halliburton admitted that its sales to Iran, Iraq and Sudan "appeared to have" violated the U.S. ban on selling products to nations that sponsor terrorism. In a report filed with the Securities and Exchange Commission, Dresser, Inc., which was a subsidiary of Halliburton from 1998 to 2001, admitted that it may have violated the law by selling oil field control valves to the three terror-sponsoring nations. Dresser, which was spun off from Halliburton in 2001, did not specify whether the sales occurred when the company was a subsidiary of Halliburton. But it did say the sales "may result in civil or criminal penalties."###
Halliburton recently reported that it received a subpoena from a federal grand jury in Houston requesting documents related to its dealings in Iran. Federal law disallows American companies from transacting business with nations that sponsor terrorism, but foreign subsidiaries of U.S. companies are not banned from such transactions. So, Halliburton uses an offshore subsidiary incorporated in the Cayman Islands (where the company has no oil and gas construction or engineering operations) to trade with Iran, a country that the Bush administration has described as part of an "axis of evil, arming to threaten the peace of the world."
In May 2004, the U.S. Senate voted against legislation that would have stopped companies like Halliburton from using offshore subsidiaries to invest in Iran. The legislation was defeated in a 50-49 vote, mostly along party lines.
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HalliburtonWatch.org: Senate refuses to prohibit Halliburton subsidiaries from investing in terror-sponsoring nations
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