Army says it will withhold $19.6 million from Halliburton over hiring of mercenaries

A Blackwater 'private security' team on patrol

WASHINGTON, Feb. 7 — The Army announced during a House oversight committee hearing on Wednesday that it would withhold $19.6 million from the Halliburton Company after recently discovering that the contractor had hired the company Blackwater USA to provide armed security guards in Iraq, a potential breach of its government contract.

The Army has said that its contracts with Halliburton, which has a five-year, $16 billion deal to support American military operations in Iraq, generally barred the company and its subcontractors from using private armed guards. But in a statement, Halliburton disagreed with the Army’s interpretation and suggested that there was nothing to prohibit Halliburton’s subcontractors from hiring such guards.

Read the rest at the NY Times

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