No Comment — February 15, 2009, 12:49 pm

Halliburton Settlement Leaves Unsettling Questions

The Justice Department’s long-standing probe of corruption in connection with Halliburton’s Nigerian contracts—a matter of obvious and acute concern to Vice President Dick Cheney—was rushed to a final settlement just before the arrival of the new Obama team at Justice. Under the settlement Halliburton and its former subsidiary KBR are paying $579 million in fines. The New York Times opines today:

…there are a lot of unanswered questions about Halliburton’s practices in Iraq, with numerous complaints of overpricing and ineptitude. Its corporate conduct in the Nigerian scheme is hardly encouraging and should compel tighter scrutiny of its Iraq failures. Across a decade, KBR and Halliburton paid $180 million in bribes to Nigerian officials to secure $6 billion in contracts for building natural gas processing equipment. Under the settlement with federal authorities, Halliburton will pay most of the penalties, with KBR, its subsidiary during the bribery scheme, pleading guilty to hiring international bagmen to regularly grease Nigerian officials with million-dollar satchels of cash. A former KBR executive who deemed bribery a worthwhile cost of doing business now faces prison time.

That’s true. But put aside Iraq for a moment—there are no shortage of “unanswered questions” about the circumstances of this settlement. Consider the timing and circumstances. We start with a Justice Department which is now itself under strong suspicion of having been politically directed from the White House, with a special prosecutor already appointed and indictments now anticipated. In violation of normal procedures, Alberto Gonzales authorized Vice President Cheney and his staff to deal directly with Justice Department officials on matters of interest to them. We have every reason to ask whether this included the very Halliburton deal that the Bush team pushed through Justice before the new tenants arrived.

Why would Cheney care? For one thing, the corrupt dealings that are the focus of the deal occurred almost entirely between 1995–2000, while Dick Cheney was the CEO of Halliburton. For another, Halliburton tapped Cheney, who had no corporate managerial expertise, principally because of his expertise in government relations and because of his established track record in dealing not only with the U.S. government, but with governments around the world. The thought was that Cheney’s black book would help the company develop its rapidly expanding government contracts business. In other words, the multi-billion dollar Nigerian LNG deals were exactly the sort of thing that Cheney was expected to harvest for Halliburton. For a third, as my colleague Ken Silverstein notes, the man at the heart of the $160 million in corrupt payments, Jack Stanley, was hand-picked by Dick Cheney and had a direct report to him. Moreover, can you imagine a CEO under any circumstances simply not knowing about $160 million in grease payments made in connection with sensitive contract negotiations in Nigeria, a country long ranked at the bottom of Transparency International’s corruption lists?

Dick Cheney has long had very good reason to fear a prosecutor’s knock at the door. It might be his clear role in the outing of CIA agent Valerie Plame. It might be his authorship of the Bush Administration’s torture policy and his advocacy of warrantless surveillance of tens of millions of Americans. Or it might just be something quite mundane, namely, his role in securing a $2.2 billion contract to build a liquefied natural gas plant in Nigeria by making $160 million in corrupt payments to or for the benefit of government officials.

In any event, the Obama Administration are chumps if they sit back and accept the deal the Bush Justice Department concluded for the benefit of Dick Cheney. The whole matter needs to be reopened and examined independently. Let’s hope they consider Patrick Fitzgerald for the job.

Share
Single Page

More from Scott Horton:

From the April 2015 issue

Company Men

Torture, treachery, and the CIA

Six Questions October 18, 2014, 8:00 pm

The APA Grapples with Its Torture Demons: Six Questions for Nathaniel Raymond

Nathaniel Raymond on CIA interrogation techniques.

No Comment, Six Questions June 4, 2014, 8:00 am

Uncovering the Cover Ups: Death Camp in Delta

Mark Denbeaux on the NCIS cover-up of three “suicides” at Guantánamo Bay Detention Camp

Get access to 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

August 2015

In the Shadow of the Storm

= Subscribers only.
Sign in here.
Subscribe here.

Measure for Measure

= Subscribers only.
Sign in here.
Subscribe here.

The Trouble with Israel

= Subscribers only.
Sign in here.
Subscribe here.

A Camera on Every Cop

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Post
“The campaign music stopped. Hundreds of people, their faces now warped by the dread of a third bomb, began running for cover.”
Photograph © Guy Martin/Panos.
Article
Part Neither, Part Both·

= Subscribers only.
Sign in here.
Subscribe here.

“Eight months pregnant I told an old woman sitting beside me on the bus that the egg that hatched my baby came from my wife’s ovaries. I didn’t know how the old woman would take it; one can never know. She was delighted: That’s like a fairy tale!”
Mother with Children, by Gustav Klimt © akg-images
Article
What Recovery?·

= Subscribers only.
Sign in here.
Subscribe here.

“Between 2007 and 2010, Albany’s poverty rate jumped 12 points, to a record high of 39.9 percent. More than two thirds of Albany’s 76,000 residents are black, and since 2010, their poverty rate has climbed even higher, to nearly 42 percent.”
Photograph by Will Steacy
Article
Rag Time·

= Subscribers only.
Sign in here.
Subscribe here.

From a May 23 commencement address delivered at Hofstra University. Doctorow died on Tuesday. He was 84.
“We are a deeply divided nation in danger of undergoing a profound change for the worse.”
Photograph by Giuseppe Giglia
Article
The Trouble with Israel·

= Subscribers only.
Sign in here.
Subscribe here.

“We think we are the only people in the world who live with threat, but we have to work with regional leaders who will work with us. Bibi is taking the country into unprecedented international isolation.”
Photograph by Adam Golfer

Ratio of money spent by Britons on prostitution to that spent on hairdressing:

1:1

A German scientist was testing an anti-stupidity pill.

A Twitter spokesperson conceded that a “Frat House”–themed office party “was in poor taste at best.”

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Subways Are for Sleeping

By

“Shelby is waiting for something. He himself does not know what it is. When it comes he will either go back into the world from which he came, or sink out of sight in the morass of alcoholism or despair that has engulfed other vagrants.”

Subscribe Today