The Bonus Book of the Week is “Halliburton’s Army, How a Well-Connected Texas Oil Company Revolutionized the Way America Makes War” by Pratap Chatterjee, published in 2009.
This slightly sloppily proofread volume was also slightly redundant and very disorganized. Nevertheless, it was extremely well-documented and detailed. The author personally visited various sites and personally interviewed various people– in addition to sourcing information from documents– about which and whom he wrote.
In the late 1930’s, president Franklin Roosevelt, Congressman Lyndon Johnson and the company Brown & Root (BR) formed a public-private partnership to build the Marshall Ford Dam in Texas. In the early 1940’s, the company built the naval air station Corpus Christi. Taxpayers way overpaid for those projects. The reason was partly because the sweetheart terms of its contract guaranteed it a profit.
BR also built warships for World War II. It allegedly financed Lyndon Johnson’s run for the U.S. Senate in 1948. It built military bases during the Vietnam War. In August 1966, U.S. Congressman Donald Rumsfeld contended that, due to conflicts of interest, the federal government had signed contracts with BR that were “illegal by statute.” Of course, Rumsfeld hated President Johnson.
In October 1966, Rumsfeld and Bob Dole reported that BR had refused to let any government officials see documents associated with a BR construction site. The company and its subcontractors had lost track of $120 million and had thefts of millions of dollars of equipment by the end of its ($1.9-billion-in-costs) ten-year contract.
After the First Gulf War, a company named Halliburton pioneered the user-friendly assembly of cheap, prefab structures on military bases that were comfortable for soldiers in global hotspots. In early 1998, Dick Cheney assisted with the creation of Kellogg, Brown & Root when M.W. Kellogg was added to BR. Then Halliburton took over the whole kit and caboodle.
Through the 1990’s, Halliburton finagled $167.7 million worth of contracts from the U.S. government in Rwanda, Haiti, Saudi Arabia, Kuwait and Italy. “But it’s hard to convince people that the company had no influence when your entire upper management once worked for the very agencies that awarded the contracts.”
Halliburton’s tentacles also reached into Somalian and Nigerian territory through bribery. It had fun in the Balkans with “… double-billing, inflating prices and providing of unsuitable products.” By the late 1990’s, thanks to Halliburton and Chevron, the previously unspoiled, tourist-filled beaches in Angola’s Cabinda province had turned black.
Donald Rumsfeld was named Secretary of Defense in the United States beginning in 2001. Just prior to 9/11, “Rumsfeld said that the Pentagon was wasting at least $3 billion a year.” In the next eight years, he proceeded to eliminate most of the military’s in-house operations, including payroll, warehousing and sanitation.
Rumsfeld was adding one more area of American life– the military– to the privatization trend of recent decades. It has already gained traction in education, prisons, government entitlements, student loans, spying and courier services. Curiously, healthcare is going in the opposite direction. Why is that?
Well, medicine has undergone a major cultural change in the last fifty years. The family doctor who made house calls used to be a trusted family friend who charged a reasonable rate for his services. Now depersonalized medicine whose costs are sky-high due to technology and specialization is the norm. Healthcare is a mature industry.
Some aspects of healthcare have become capitalism gone hog-wild, especially those that are a matter of life and death. They have become as out of control as Halliburton.
That is why Americans are welcoming the intervention of government regulation to stem the incompetence, fraud, abuse and waste that have inevitably resulted from too much capitalism. Yes, capitalism is good– up to a point.
Anyway, the George H.W. Bush administration initially signed a military-services contract of a few million dollars with Halliburton. Dick Cheney served as CEO of Halliburton from late summer 1995 through 2000.
In those years and beyond, Cheney successfully spurred specific American foreign policy initiatives to win more lucrative contracts for Halliburton. By January 2002, in one of several nefarious policy changes, he got President George W. Bush to lift economic sanctions against the Muslim country of Azerbaijan, human rights and environmentalism be damned. On Halliburton’s behalf, Cheney engaged in friendly dealings with such oil producers as Iran, Libya, Russia, Saudi Arabia, and prior to the war, Iraq.
Azerbaijan’s president, Azeri Aliyev came to the United States for prostate cancer surgery in February 2002. A year later, he ran for reelection and won. As a quid pro quo, in November 2003, President George W. Bush got him a World Bank loan for an oil pipeline.
Of course, in February 2003, the fix was in and Halliburton was automatically awarded the contract that spelled out the terms of the fait accompli restoration of Iraq’s oil fields after the fait accompli war, ethics be damned. To top it off, the contract guaranteed a hefty profit for Halliburton. The company argued that there was no time for a fair, sealed-bid process before the war.
The “… contract would effectively make Halliburton the biggest recipient of Iraq’s oil money, with no input from the Iraqi people.” More than half of the billings for Halliburton’s oil-related services that the U.S. government would presumably pay for, were actually paid with Iraq cash. In other words, the proceeds of Iraq oil sales were used to pay Halliburton.
An organization that studied the quality of Halliburton’s work in Iraq calculated that “… the potential revenue lost from reduced oil production and exports” was $14.8 billion. Gross incompetence, fraud, abuse and waste were not isolated incidents. The holding company’s entities had a few contracts whose epic failures were hushed up until their projects’ entire budgets were spent, at which time those contracts were cancelled.
For example, there were many inexcusable episodes of oil smuggling by corrupt Iraqi officials, right under the noses of U.S. contractors. Halliburton was supposed to be the party responsible for preventing those episodes until it was fired in mid-2005.
In early 2004, due to public outcry over the no-bid, rigged Halliburton contract, there was new bidding, which was still rigged. The military, politicians and top employees of Halliburton were all co-conspirators in the illegality.
Workers of Halliburton’s subsidiaries and its subcontractors have hailed from a range of nations, including but not limited to: Fiji, Uganda, Egypt, Sri Lanka, Saudi Arabia, the Philippines, Pakistan, Afghanistan, Kyrgyzstan, Bosnia, India and America. Both non-American and American hirees are lured by the promise of high pay.
But often that promise comes with a price; the workers are subjected to mean living quarters, do hard manual labor for long hours, such as twelve hours a day, seven days a week in dangerous conditions, get no health insurance and no paid time off, and might go for months with no pay.
If they’re non-American, workers can’t complain because they’ll likely be threatened with dismissal. They likely borrowed money to travel to their expatriate work in the first place. If they quit their jobs, they would be greatly indebted, and their families back home would be made even more impoverished.
Just a few of the kinds of functions the worldwide network of cheap labor fulfills include: food delivery, preparation and catering, lodging, golf course maintenance, civil engineering, motor vehicle transport of the United States Air Force, United States customs inspection and security.
Read the book to learn the details of numerous Halliburton-related outrages in addition to the aforementioned, and how in 2003 and later, the voices of the handful of people who might have had the power to stop the corruption were eventually drowned out by political actions imposed by the powers that were.