More Money, More Problems
With an estimated $16
billion in defense contracts, KBR
is
by far the largest contractor in Iraq,
"with eight
times the work of its nearest competitor." The firm has 54,000
people working on its projects in Iraq. Until last year, KBR
operated as a subsidiary
of Halliburton, the oil services conglomerate over which Vice President
Cheney once presided. Prior to the Iraq war, KBR
received no-bid contracts from the Bush administration to "rebuild
Iraq's oil
infrastructure" and to "provide
support
services to troops." The company has profited handsomely from its
sweetheart deals, racking up a $71
million profit in the fourth-quarter of 2007 alone. Yet for
all the financial success it has attained, KBR has repeatedly engaged
in abusive corporate practices and has shirked its duty to preserve and
protect those men and women who are serving on the front lines of war.
DON'T DRINK THE WATER:
According to a new report from the Pentagon Inspector General, dozens
of American troops in Iraq fell sick at bases using
"unmonitored
and potentially unsafe" water supplied by KBR. The Associated Press
writes that the medical
records for troops at one KBR-run site indicated "38 cases of illnesses
commonly attributed to problem water. These include skin abscesses,
cellulitis, skin infections and diarrhea. Doctors diagnosed 24 of the
cases in January and February 2006, the same period when medical
officials warned of a rise in bacterial infections at the base." In
January 2006, former Halliburton employees accused the company of "supplying
contaminated water to American troops and Iraqi civilians at a
marine base in Ramadi." In an internal e-mail, a Halliburton employee
warned, "The level of contamination was roughly 2x the normal
contamination of untreated water from the Euphrates river." Halliburton
denied the allegations, and more soldiers continued to fall sick
because of the water. Sen. Byron Dorgan (D-ND), who has led
investigations in contract abuses, said, "I
think it's outrageous that KBR tried
to deny that there was a problem,
especially when it turned out that there were dozens of U.S. troops
reporting water-related illnesses."
DODGING SOCIAL SECURITY AND MEDICARE
TAXES: Despite the massive profits KBR has been earning, it has
worked hard to shelter
those revenues from the U.S. government and its own employees.
According a detailed investigation by the Boston Globe, KBR has
"avoided paying hundreds of
millions of dollars in federal
Medicare and Social Security taxes by
hiring workers through shell companies" based in the Cayman Islands --
a scheme established by Halliburton under
Cheney's tenure. In doing so, the firm deprived KBR
employees of guaranteed future retirement benefits and unemployment
insurance should they lose their jobs. Since at least 2004, the
Pentagon has known about KBR's practices, but has chosen to ignore the
issue. The use of the shell companies to divert millions from Social
Security
and Medicare gives KBR an
unfair advantage over its rivals, almost all of whom pay the
federal taxes. "It
is both shocking and disappointing that some American companies
continue to exploit our system in wartime by setting up shell
corporations via a tax haven mailbox," said Rep. Richard Neal (D-MA).
"You have to wonder why
the
Pentagon continues to do business with these contractors who skirt
the
rules."
COVERING UP RAPE: There
is one circumstance in which KBR does
claim its employees as its own: "when it comes to receiving
the legal
immunity extended to employers working in Iraq." When former KBR
employee Jamie Leigh Jones revealed late last year that she
was gang-raped by her co-workers while serving in Baghdad, the company
pushed hard for the case to be heard in private arbitration,
without a public record or transcript. "Legal experts say Jones' alleged assailants will likely
never face a judge and jury, due to an
enormous loophole that has effectively left contractors in Iraq
beyond the reach of United States law." Last week, lawyers for Jones
argued that her case should be
"tried in court, not settled in private arbitration," but
KBR
insists her contract binds her to settle all claims
through arbitration. Rep. Ted Poe (R-TX) has said his office has been
contacted by other KBR employees who say they were sexually
assaulted in Iraq. The Pentagon has refused
to investigate these cases, and thus far, the Bush administration "has
not offered
to develop
a coordinated response to the problem."
|
|
|
|
The research team that brings you The Progress Report and ThinkProgress.org needs summer interns! Click here for more information.
Forty-four Southern Baptist leaders, including its current president, "have decided to back a declaration calling for more action on climate change, saying its previous position on the issue was 'too timid.'"
VIRGINIA:
Lawmakers approve legislation cracking down on undocumented
immigrants.
MICHIGAN:
"Michigan's gasoline prices are up 19 cents during the past week."
OREGON:
Oregon's health care lottery has drawn over 91,000 applications in just
30 days.
THINK PROGRESS: Sen. John McCain (R-AZ) compares himself to progressive icon Teddy Roosevelt.
TV NEWSER: Conservative commentator Tucker Carlson's MSNBC show is set to be canceled.
JULIAN SANCHEZ: The Weekly Standard's Matthew Continetti gets his FISA facts wrong.
DEMOCRACY ARSENAL: The Brookings Institution's Michael O'Hanlon offers no evidence to back up his claims of political progress in Iraq.







