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Sunday, October 24, 2004


RUNNING GOVERNMENT LIKE A BANANA REPUBLIC

They certainly are consistent, n'cest pas? Punishing public servants who try to stop Halliburton pillaging, I mean:
Greenhouse's objections, which had not been made public until now, will probably fuel criticism of the government's allegedly cozy relationship with Halliburton and could be greeted with calls for further investigation. Halliburton's Kellogg, Brown and Root (KBR) subsidiary has been mired in allegations of overcharging and mismanagement in Iraq, and the government in January replaced the noncompetitive oil-field contract that Greenhouse had objected to and made two competitively bid awards instead. (Halliburton won the larger contract, worth up to $1.2 billion, for repairing oil installations in southern Iraq, while Parsons Corp. got one for the north, worth up to $800 million.) Halliburton's Iraq business, which includes another government contract as well, has been under particular scrutiny because Vice President Dick Cheney was once its CEO. The Pentagon, concerned about potential controversy when it signed the original oil-work contract, gave Cheney's staff a heads-up beforehand. (TIME disclosed that alert in June.)

Greenhouse seems to have got nothing but trouble for questioning the deal. Warned to stop interfering and threatened with a demotion, the career Corps employee decided to act on her conscience, according to her lawyer, Michael Kohn. Kohn, who has represented other federal whistle-blowers, last week sent a letter—obtained by TIME from congressional sources—on her behalf to the acting Secretary of the Army. In it Kohn recounts Greenhouse's Pentagon meeting and demands an investigation of alleged violations of Army regulations in the contract's awarding. (The Pentagon justified the contract procedures as necessary in a time of war, saying KBR was the only choice because of security clearances that it had received earlier.) Kohn charges that Greenhouse's superiors have tried to silence her; he says she has agreed to be interviewed, pending approval from her employer, but the Army failed to make her available despite repeated requests from TIME.
Via Will Bunch.

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