Monday, Nov 01, 2004
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By David Leigh, Rob Evans,
LONDON/NEW YORK, OCT. 31. British authorities have opened a new front in the widening investigation into allegations of bribery at Halliburton, the American oil services business, while it was being run by the U.S. Vice-President, Dick Cheney. The London-based Guardian newspaper has learned that the U.K.'s Serious Fraud Office (SFO) has joined the international effort at the request of the U.S. Department of Justice in Washington. French and Nigerian officials are already involved in the inquiry. Halliburton has become a political liability for the Bush administration as the U.S. prepares to vote in presidential elections next week.
Dogged by controversy
The company, one of the chief government contractors in Iraq and Afghanistan, has been dogged by controversy, which includes claims of White House favouritism in awarding the firm billions of dollars of contracts without being forced to bid and Pentagon allegations that the firm has massively overcharged for its work. It emerged late on Thursday that the FBI had launched an inquiry into how Halliburton secured contracts in Iraq, so far worth almost $9billion. The Nigerian investigation centres on $180million in payments allegedly made by a consortium led by Halliburton to secure the contract to build a natural gas plant in Nigeria. The cash was allegedly channelled through a U.S.-owned oil engineering firm in London called MW Kellogg and was handled by a company executive based in Berkshire, west of London. The funds were said to have been paid into a Swiss bank by a British lawyer. The Democratic challenger for the U.S. presidency, John Kerry, has made repeated jibes at Halliburton during his campaign for the White House, suggesting that the Vice-President is using his position to look after his friends. Referring to the shortage of flu vaccine in the U.S., Mr Kerry told a rally in Orlando last week: ``If Halliburton made flu shots, you would have more flu shots here than there are oranges in the State of Florida.'' Mr. Cheney ran Dallas-based Halliburton for five years before quitting to run for office in 2000. He banked $36million when he left and continues to receive deferred income from the company.
Scandal gathers pace
When Mr. Kerry's running mate, John Edwards, referred to the Nigerian scandal during a televised debate earlier this month, Mr. Cheney said there was ``no substance'' to the charges. But Halliburton admitted last month that it had found evidence that bribery was at least discussed. — © Guardian Newspapers Limited 2004
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