Evolution of Dispossession

Evolution of Dispossession
How to Steal a Country?

Monday, March 12, 2007

Rats are first to bail ship ...

So Halliburton gets the nod on government contracts, which US tax dollars fund by the way, and then Halliburton decides its going to take their money and run.

If this company is allowed to take US tax dollars and move its headquarters overseas, where it won't pay US taxes, that is fundamentally wrong.

Cheney was Defense Secretary under George HW Bush. After the first Gulf War, as CEO of Halliburton Cheney defied his own country's sanctions and did business in Iraq (through a French subsidiary). And now the VP's former company is moving out of country !

It is an outrage. Halliburton should be required to give back every cent of its government contracts in the past 15 years to bail ship like this.

4 comments:

ann said...

Hi,

Yes, rats! Firstly, "cost-plus" contracts are illegal in the U.S. and Halliburton had "cost-plus" contracts in Iraq. This means that as many costs as they could run up, the government would reimburse them for the costs, and, in addition, they would get a profit based on a percentage of the costs. It doesn't take a genius to figure out that U.S. taxpayers have been had.


Ann

ann said...

Hi,

I keep trying to post a comment...

Cost-plus contracts are not allowed in the U.S. Cost-plus means that as many costs as a company can run up, they will be reimbursed (of course, there are supposed to be contracting officers who verify the validity of these costs...but with a receipt...) and then the company will get a profit based on a percentage of the costs. The result is just the opposite of good contracting principles, i.e., "lowest acceptable bid contracts" because the contractor will, of course, accept the highest cost from his suppliers because his profit is based on cost and he will get a higher profit because of the higher cost. It's ridiculous, even in war-time, and, of course, the war was supposed to have been over in 2003.

Ann

ann said...

Hi,

After thinking about this article for a day, I think there is some good news for the citizens of the U.S. If Halliburton is now a foreign owned company, it shouldn't be able to do U.S. government contracts anymore. There is a stipulation in government contract regulations/law that states foreign owned businesses cannot have government contracts unless there is no other domestic provider of supplies or services. This should also apply to contracts for reconstruction of New Orleans since FEMA is a government entity!

Ann

ann said...

Hi,

It's me again.

I read that requirements for cost and pricing data from Halliburton were suspended for Iraqi contracts by Congress. This means that contracting officers don't have the right to request documentation for costs submitted for payment. One of the unpardonable sins of contracting is having a sole-source (no-bid) cost contract and then not have any controls over the costs submitted.

I also read that Mr. Cheney has stock options in Halliburton and that since he has agreed to donate all of the profit from these options to charity, he is not considered as having a financial interest in Halliburton. Something to consider: his agreement to donate the profit from his options can be cancelled at any time. Something else to consider is that if the options were given to him as part of his salary package as CEO of Halliburton, the portion of the stock option not exercised, the market value at the time the options were given to him (the basis from which one subtracts from the overall price to arrive at a profit figure), actually is a finacial interest in the company, and, if he hasn't exercised his options, he hasn't paid taxes on the market value of the stocks at the time they were given to him. Is the market value deferred salary?

It's all sickening.


Ann