Halliburton to be reimbursed for most disputed Iraq contract costs

Forbes.com ^ | 2/27/2006

[syriacus]

WASHINGTON (AFX) - The US Army has decided to reimburse Halliburton most costs incurred in a 2.4 bln usd no-bid contract in Iraq despite challenges by auditors of more than 200 mln usd of the costs, officials confirmed.

The controversial contract to deliver fuel and repair oil facilities after the 2003 US invasion of Iraq has been at the center of a long-running controversy over allegations of inflated fuel costs and other problems.

Auditors from the Defense Contract Audit Agency questioned more than 206 mln usd in costs submitted by Kellogg Brown and Root (KBR), the Halliburton subsidiary awarded the no-bid contract, according to a summary provided by the Army Corps of Engineers.

'Ultimately the contracting officer found most questioned costs, which KBR actually had incurred in executing the mission, should be reimbursed,' the corps said in a statement.

KBR was not reimbursed for 3.8 mln usd of disputed costs incurred in importing and distributing fuel, according to corps.

[neodad]

'Ultimately the contracting officer found most questioned costs, which KBR actually had incurred in executing the mission, should be reimbursed,' the corps said in a statement

Translation: We were wrong, KBR was right. I'm sure this will be a page 1 NYT story.

[syriacus]

I'm sure this will be a page 1 NYT story.

LOL. Here's the Reuters headline UPDATE 1-US Army pays Halliburton despite audit concerns