quote:
Rage erupts over profiteering clause
Iraq supplemental justified, says GOP
By Klaus Marre


A decision by the House Republicans to strip the Iraq supplemental bill of an anti-profiteering provision has outraged the Democrats.

Some Democrats have accused the White House of pulling the strings on the effort to nix the language.

“The White House and House GOP leadership didn’t want [the provision] in there,” charged Sen. Patrick Leahy (D-Vt.), an author of the language.

The provision — included during the Senate Appropriations Committee markup with unanimous support but removed in conference — would have subjected those who deliberately defrauded the United States or Iraq to jail terms of up to 20 years and costly fines............

http://www.hillnews.com/news/110503/profiteering.aspx

The Army Corps of Engineers is "likely" to cancel the no-bid contract extension granted a week ago to Halliburton for delivery of oil-related services amid allegations that Halliburton is overcharging the federal government to import oil into Iraq. The decision to revisit the contract extension comes in part due to the assertions from inside the Pentagon that Halliburton's price for imported gasoline was "at least double what it should be". [DOH!]

Jeffrey Jones, the Director of the Defense Energy Support Center (DESC), told minority staff of the House Government Reform Committee that it costs the DESC $1.08 to $1.19 to buy and import fuel via truck into Iraq - a price that's less than half the $2.65 Halliburton is charging the US government.2

Congress has been critical of the no-bid contract - valued at up to $7 billion, since it was awarded to VP Cheney's former employer, Halliburton. Questioned about the secretive no-bid process in April, then-White House spokesman Ari Fleischer said, "the criteria should be followed by the contracting agencies. The White House does not get involved or dictate to agencies on how to award contracts."3 But President Bush signed an executive order within a month of taking office setting terms for executive agency contracting processes, a process the White House said should strive for "the highest quality at the best price to ensure that government is a responsible steward of the American people's hard-earned tax dollars."4

Scrutiny of the Halliburton contract has become more intense since Congress passed the President's emergency request for $87 billion. Stripped from the final bill, at White House insistence, say Senate Democrats, was a provision to subject those who deliberately defrauded the United States or Iraq to jail terms of up to 20 years and costly fines.5

Sources:
Letter from Rep. Henry Waxman and Rep. John Dingell to Lt. Gen. Robert B. Flowers, U.S. Army Corps of Engineers, 11/5/03.
ibid.
White House Press Briefing, 4/11/03.
"The President's Small Business Agenda," Whitehouse.gov; http://www.whitehouse.gov/infocus/smallbusiness/taxpayer.html.
"Rage erupts over profiteering clause," The Hill, 11/5/03.

In related news..

U.S. Black Hawk Crashes in Iraq; at Least 4 Killed

The ambush brought to at least 140 the number of U.S. soldiers killed in action since Washington declared major combat over on May 1 -- more than the 114 killed during the invasion in March and April.

Bring them on.