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The Pentagon has asked the Justice Department to join in an investigation of alleged overcharging by US energy and services group Halliburton, The Wall Street Journal said Thursday. The move, which one justice department official deemed "significant," could lead to criminal fraud charges and penalties agianst the Texas-based company once headed by Vice President Dick Cheney. The Pentagon, which launched a probe in January into allegations Halliburton subsidiary Kellogg Brown and Root (KBR) had overcharged the military for oil delivered to Iraq, lacks the power to indict and press criminal charges. The US Congress was notified Wednesday of the Pentagon's decision to widen the Halliburton investigation, the daily said. The Pentagon said last month its auditors had been inclined to conclude that a subcontractor employed by Halliburton, which has secured an exclusive oil supply contract in Iraq, may have tricked the US government into paying 61 million dollars more than the fair market price. Halliburton responded by repeating its denials of any wrongdoing, but welcoming the Pentagon probe as "a step toward resolution of the issue." "The facts show KBR delivered fuel to Iraq at the best value, the best price and the best terms," Wendy Hall, director of public relations for the conglomerate, said last month. An unnamed justice official told The Wall Street Journal that the department might inquire whether Halliburton violated the federal Claims Act, by which a company found guilty of defrauding the government can be made to repay as much as three times the amount of the fraud. The embattled oil services firm on Tuesday issued a statement claiming that its liquidity could be hurt if US government agencies require a further review of its work in Iraq. During 2003, Iraq-related work provided 3.6 billion dollars in revenues for Halliburton and 85 million in operating profits, the statement said. But the company said it could face a crunch if its billing practices face more review. "As a result of an increase in the level of work performed in Iraq or the Defense Contract Audit Agency's review of additional aspects of our services performed in Iraq, it is possible that we may, or may be required to, withhold additional invoicing or make refunds to our customer, some of which could be substantial, until these matters are resolved," it said. "This could materially and adversely affect our liquidity." All rights reserved. Copyright 2003 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse. Quick Links
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