USA overpaying Dick Cheney's company for gasoline - Tilted Forum Project Discussion Community

HarmlessRabbit · 10-30-2003, 02:23 PM

Once again, the Bush Administration is taking good care of the company that still pays Dick Cheney $1 million per year. Paying $2.65 a gallon for gas that should cost $1 to import into Iraq, according to experts.

Remember Whitewater? Clinton got roasted for supposely trying to make a few tens of thousands of dollars on some real estate. Seems rather quaint now, doesn't it? Where is the outrage from the republican side of the aisle? Bring back the independent counsels!

http://biz.yahoo.com/rb/031029/iraq_..._cheney_3.html

Quote:

Reps: U.S. Overpaying Halliburton for Gas
Wednesday October 29, 7:23 pm ET
By Susan Cornwell

WASHINGTON (Reuters) - The U.S. government is paying Vice President Dick Cheney's former firm Halliburton (NYSE:HAL - News) "enormous sums" -- $2.65 a gallon -- for gasoline imported into Iraq from Kuwait, two lawmakers charged on Wednesday.

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Democrats Rep. Henry Waxman of California and Rep. John Dingell of Michigan said this gross overpayment was made worse by the fact that the U.S. government was turning around and reselling the gasoline in Iraq for four to 15 cents a gallon.

In a letter of complaint sent to President Bush's national security adviser Condoleezza Rice, the two lawmakers said experts they consulted think the cost of buying and transporting gasoline from Kuwait into Iraq should cost less than $1 a gallon.

The Iraqi oil company SOMO is paying only 97 cents a gallon to import gasoline from Kuwait to Iraq, they said.

Waxman added in a statement: "We know that someone is getting rich importing gasoline into Iraq. What we don't know is who is making the money, Halliburton or the Kuwaitis?"

Halliburton subsidiary Kellogg Brown & Root, which defends its pricing as fair, has a contract with the U.S. Army Corps of Engineers to rebuild Iraq's oil sector. This has included importing oil products in short supply as the oil-rich nation's refineries are brought back into production.

As of Oct. 19, Halliburton had imported 61.3 million gallons of gasoline from Kuwait into Iraq, and the company was paid $162.5 million for an average price of $2.65 a gallon, Waxman and Dingell wrote.

"The $2.65 per gallon is grossly excessive," they said. "Experts we consulted stated that the total price for buying and transporting gasoline into Iraq should be less than $1.00 per gallon."

The U.S. government was then selling this gasoline inside Iraq for just four to 15 cents a gallon, subsidizing over 95 percent of the cost of gasoline consumed by Iraqis, they said.

"The U.S. government is paying nearly three times more for gasoline from Kuwait than it should, and then is reselling this gasoline at a huge loss inside Iraq," the lawmakers wrote.

Halliburton spokeswoman Wendy Hall defended the company against what she said were "false statements" about its efforts in Iraq, adding that wartime work was expensive and Halliburton only recovered "a few cents on the dollar" for fuel costs.

"Four types of fuel are being purchased: gasoline, kerosene, LPG and diesel," Hall said in a statement. These fuels had different prices, she said, but gave no details.

"It is expensive to purchase, ship and deliver fuel into a wartime situation, especially when you are limited by short duration contracting," she said.

"The costs for the fuel are 'pass-through' costs because Halliburton only recovers a few cents on the dollar for this expense," Hall said.

Cheney was Halliburton's CEO for five years before running for vice-president in 2000.

Waxman wrote earlier this month to the White House Office of Management and Budget to complain that Halliburton's subsidiary was overcharging for petroleum products, saying it was billing an average price of $1.59 a gallon.

A Waxman spokeswoman said new information the lawmaker has received since then was broken down into gasoline from Turkey and gasoline from Kuwait, revealing the price for gasoline imported from Kuwait to be much higher.

Halliburton was charging only $1.22 per gallon to import gasoline from Turkey into Iraq, Waxman and Dingell said.

The_Dude · 10-30-2003, 03:18 PM

it looks like halliburton is getting pretty high returns for their investments in the bush/cheney campaign.

filtherton · 10-30-2003, 03:19 PM

The system is working!!!!

eple · 10-30-2003, 03:20 PM

*I was edited because I can't tell the difference between a civil argument and name calling.*

filtherton · 10-30-2003, 05:07 PM

*I too had to have my comments edited.*

Ustwo · 10-30-2003, 05:56 PM

Selling for a loss in Iraq makes sense. Iraq has always had very low gas prices (go figure) and charging full price would be both bad for their reconstruction and bad for PR.

As for this ....

Quote:

"The $2.65 per gallon is grossly excessive," they said. "Experts we consulted stated that the total price for buying and transporting gasoline into Iraq should be less than $1.00 per gallon."

Did those experts take into account the fact that there was a war not to long ago, that infrastructure has been damaged, that attacks are still going on in the country? I can't say I trust these 'experts' of Waxman’s.

Waxman is about as far left as you can get, Dingell is somewhat better. I don’t know much about Dingell but everyone knows Waxman has been bashing Bush since day one about any detail on any thing no matter how spurious the evidence. It will take more then his word to make me take notice.

debaser · 10-30-2003, 06:20 PM

Quote:

Originally posted by Ustwo

Did those experts take into account the fact that there was a war not to long ago, that infrastructure has been damaged, that attacks are still going on in the country? I can't say I trust these 'experts' of Waxman’s.

Quote:

Originally posted by HarmlessRabbit
The Iraqi oil company SOMO is paying only 97 cents a gallon to import gasoline from Kuwait to Iraq, they said.

Ustwo · 10-30-2003, 06:38 PM

I'm still waiting for facts, but lets chew on this a while

Quote:

The Clinton administration nonetheless awarded a no-bid contract to Halliburton to continue its work in the Balkans supporting the U.S. peacekeeping mission there because it made little sense to change midstream. According to Byron York, Al Gore's reinventing-government panel even singled out Halliburton for praise for its military logistics work.

Interesting eh?

onetime2 · 10-30-2003, 07:02 PM

The military overpays for stuff? I'm sure that this too is a unique situation to the Bush administration.

HarmlessRabbit · 10-30-2003, 08:38 PM

Quote:

Originally posted by onetime2
The military overpays for stuff? I'm sure that this too is a unique situation to the Bush administration.

So we should ignore corruption and potential lawbreaking? I'm merely asking for Cheney to be investigated the same as Clinton was investigated.

I'll tell you what, let's start an independent counsel and we'll only spend HALF of what what spent investigating Clinton and Whitewater. I'll cut you a deal! Fair?

onetime2 · 10-31-2003, 05:00 AM

Quote:

Originally posted by HarmlessRabbit
So we should ignore corruption and potential lawbreaking? I'm merely asking for Cheney to be investigated the same as Clinton was investigated.

I'll tell you what, let's start an independent counsel and we'll only spend HALF of what what spent investigating Clinton and Whitewater. I'll cut you a deal! Fair?

As you know, the independent counsel no longer exists. Both sides are happy about that.

Funny how when it was an independent counsel going after Clinton your side whined and complained about the expense and how unfair it was, but when it's a Republican it's all ok.

Perhaps if you consistently applied your morality across the political spectrum you'd be taken more seriously.

Liquor Dealer · 10-31-2003, 05:31 AM

Quote:

Originally posted by HarmlessRabbit
So we should ignore corruption and potential lawbreaking? I'm merely asking for Cheney to be investigated the same as Clinton was investigated.

I'll tell you what, let's start an independent counsel and we'll only spend HALF of what what spent investigating Clinton and Whitewater. I'll cut you a deal! Fair?

Cheney's ex-company! I think EX is the thing that should jump out in this - I think there needs to be an independent counsel to look into the expenses of the past independent counsel investigations - Makes even $ 5 a gallon gas look like a damn bargain.

HarmlessRabbit · 10-31-2003, 07:46 AM

Quote:

Originally posted by Liquor Dealer
Cheney's ex-company!

Really? Strange that he's being paid a million dollars a year by them, eh? I'm sure that check for $1,000,000.00 coming to his house once a year doesn't sway his opinions at all. Had it been Clinton, I'm sure the republicans would have had no problem with Clinton getting a million bucks here or there from some business contacts.

onetime2 · 10-31-2003, 08:02 AM

Quote:

Originally posted by HarmlessRabbit
Really? Strange that he's being paid a million dollars a year by them, eh? I'm sure that check for $1,000,000.00 coming to his house once a year doesn't sway his opinions at all. Had it been Clinton, I'm sure the republicans would have had no problem with Clinton getting a million bucks here or there from some business contacts.

Funny I thought it was in the neighborhood of $150k a year and it was compensation he was owed from his employment agreement that took place before becoming VP.

Check out how other CEOs get paid, it's not uncommon.

BTW, here's the source for the $ amount.

http://www.rense.com/general41/profit.htm

Ustwo · 10-31-2003, 08:02 AM

Quote:

Originally posted by HarmlessRabbit
Really? Strange that he's being paid a million dollars a year by them, eh? I'm sure that check for $1,000,000.00 coming to his house once a year doesn't sway his opinions at all. Had it been Clinton, I'm sure the republicans would have had no problem with Clinton getting a million bucks here or there from some business contacts.

Ummm again, why would CLINTON give no-bid contracts to Haliburton? Maybe they just do a good job?

MSD · 11-01-2003, 11:57 PM

Quote:

Originally posted by Ustwo
Ummm again, why would CLINTON give no-bid contracts to Haliburton? Maybe they just do a good job?

The same reason that everyone else did. Haliburton built Iraq's oil infrastructure, and therefore are the most qualified company to rebuild and maintain it. As much as I'd like to see Cheney hung for corruption, I don't think that a Democrat or any other president would be doing anything differently (assuming that the war had happened*)

I think that the people at Haliburton should get a nice memo mentioning that another company is doing what they're doing at less than 20% of the price, and that maybe they should try cutting costs.

* - Do not, I repeat, do not aruge about this statement. My intent is to say that this decision is logical.

2wolves · 11-02-2003, 09:34 AM

Newsmax weighs in: http://www.newsmax.com/archives/arti...0/113116.shtml

" NewsMax.com Wires
Thursday, Oct. 30, 2003

WASHINGTON – Companies awarded $8 billion in contracts to rebuild Iraq and Afghanistan have been major campaign donors to President Bush, and their executives have had important political and military connections, according to a study released Thursday.

The study of more than 70 U.S. companies and individual contractors turned up more than $500,000 in donations to the president's 2000 campaign, more than they gave collectively to any other politician over the past dozen years."

Stupid liberal media.......... /sarcasm

2Wolves

10-30-2003, 03:18 PM	#2 (permalink)
The_Dude The GrandDaddy of them all! Location: Austin, TX	it looks like halliburton is getting pretty high returns for their investments in the bush/cheney campaign. __________________ "Luck is what happens when preparation meets opportunity." - Darrel K Royal

10-30-2003, 03:20 PM	#4 (permalink)
eple Banned Location: norway	I was edited because I can't tell the difference between a civil argument and name calling. Last edited by Peetster; 11-02-2003 at 04:01 AM..

10-30-2003, 05:07 PM	#5 (permalink)
filtherton Junkie Location: In the land of ice and snow.	I too had to have my comments edited. Last edited by Peetster; 11-02-2003 at 04:02 AM..

10-30-2003, 07:02 PM	#9 (permalink)
onetime2 Junkie Location: NJ	The military overpays for stuff? I'm sure that this too is a unique situation to the Bush administration. __________________ Strive to be more curious than ignorant.

10-30-2003, 03:19 PM	#3 (permalink)
filtherton Junkie Location: In the land of ice and snow.	The system is working!!!!

11-02-2003, 09:34 AM	#17 (permalink)
2wolves Psycho Location: Just outside the D.C. belt	Newsmax weighs in: http://www.newsmax.com/archives/arti...0/113116.shtml " NewsMax.com Wires Thursday, Oct. 30, 2003 WASHINGTON – Companies awarded $8 billion in contracts to rebuild Iraq and Afghanistan have been major campaign donors to President Bush, and their executives have had important political and military connections, according to a study released Thursday. The study of more than 70 U.S. companies and individual contractors turned up more than $500,000 in donations to the president's 2000 campaign, more than they gave collectively to any other politician over the past dozen years." Stupid liberal media.......... /sarcasm 2Wolves