BUSINESS: US army to split up Halliburton's no-bid contract in Iraq, page 1

The US Army today announced plans that it was breaking up the multi-billion no bid contract of Halliburton to provide services in Iraq. It indicated that about 13 Billion dollars woth of contracts would be opened for bidding. They described the move as being more efficient.

news.yahoo.com
PARIS (AFP) - The US army plans to break up a multi-billion-dollar contract awarded to services group Halliburton to feed, house and look after troops in Iraq (news - web sites), the Wall Street Journal Europe reported.
The move, which the report said had been announced in an internal memorandum, includes putting contracts worth up to 13 billion dollars (11 billion euros) out for competitive bidding.

It comes more than a year after Halliburton won the controversial no-bid deal, which has been the target of accounting problems and allegations of overcharging.

Vice President Dick Cheny was the group's chief executive until he took office in 2001, but has denied any lingering ties to the company.

US defense department officials were quoted by the newspaper as saying that the decision to rebid the work was not meant to penalize Kellogg Brown and Root (KBR), the Halliburton division that handles work in Iraq.

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Cheney used to be the CEO and the award of the no-bid contract was fishy to say the least. While it will be more efficient, there is consistent evidence that the company was charging the government too much for alot of services. ITs much better to spread the wealth around to other countries. However, countries that were part of the coalition should recieve these contracts and not others.

[edit on 7-9-2004 by John bull 1]