ETHIC OF HALLIBURTON CONTRACTS

Ethic of Halliburton contracts in Iraq



Ethic of Halliburton contracts in Iraq

Introduction

Halliburton Energy Services is a multination corporation with operations in over 120 countries. This company started as Halliburton Oil Well Cementing Company in 1920, became incorporated in 1924, and became listed on the New York Stock Exchange in 1948. In 1960, the name was shortened to Halliburton Company, and acquisitions followed in 1962, 1988 and 1998 of various companies (Allen, 2002).

Today they offer two foremost business segments: The Energy Services Group provides mechanical goods and services for oil and gas investigation and output, and the KBR subsidiary is a foremost building business of refineries, oil areas, pipelines, and chemical plants. Halliburton is actually founded in Houston, Texas. They have lately broadcast that they will set up new head agency in Dubai in the United Arab Emirates. The head individual, leader, and CEO will agency from and be founded in Dubai to run the business from UAE (Donnelly, 2000).

 

The Corruption

 

It is hard to state where or when the business went incorrect, but we can decisively state that the share of scandal is immense and complicated.

At the end of the Gulf War, the Pentagon, directed by then Defense Secretary Dick Cheney, paid Halliburton subsidiary Brown & Root Service over $8.5 million to study the use of personal military forces with American Soldiers in battle zones (Mayer, 2004). Then in 1995 the CEO, Thomas H. Cruikshank was restored by Dick Cheney.

Halliburton quickly became the premier firm pocketing sole source contracts in Iraq. Halliburton received over $16 billion from the Pentagon for work in Iraq between the March 2003 attack and July 2006. The convention in Iraq should be no surprise. It is only a farthest case of how the Pentagon, the biggest source of waste, deception and misuse in the government government, does business.

The United States expended $270 billion in general protecting against acquisitions and contracts between September 11, 2001 and 2005 (Borosage et al).

? Fully 50% of the contracts were bestowed without comparable bidding.

? Only 41% of those contracts were subject to full and open competition.

? In 9% of the agreements, the entails of procurement is not even known.

Just as there are no clear numbers on how numerous contactors there are and what they are managing, there are no abstract numbers on the scope of the waste, deception and misuse in procurement. But anecdotal clues abounds, proposing a procurement method that pays cronies, and disregards prevalent misuse (Borosage et al).

In early 2004, the Wall Street Journal revealed that the business had overcharged the government by $16 million on an account for the cost of feeding armies at infantry groundwork in Kuwait. In January 2004, two Halliburton employees made a confession, that they had taken kickbacks producing in overcharges of $6.3 million. Yet, the next day the Pentagon bestowed another agreement to Halliburton worth $1.2 billion, to rebuild the oil commerce in south Iraq (Halliburton, 2007).

 

Cooking the Books

In 2002, the U.S. Securities and Exchange Commission (SEC) enquired accusations contrary ...