Friday, September 21, 2007

Pentagon criminal probe expands to $6 billion in supply contracts; $88 billion being audited for financial irregularities

Above: Thanksgiving at a KBR facility in Kirkuk. Among the contracts to be reviewed are awards to former Halliburton subsidiary KBR, which has received billions of dollars since 2001 to be a major provider of food and shelter services to U.S. forces in Iraq and Afghanistan.

Military officials said Thursday that contracts worth $6 billion to provide essential supplies to American troops in Kuwait, Iraq and Afghanistan — including food, water and shelter — were under review by criminal investigators, double the amount the Pentagon had previously disclosed.

In addition, $88 billion in contracts and programs, including those for body armor for American soldiers and matériel for Iraqi and Afghan security forces, are being audited for financial irregularities, the officials said.

Taken together, the figures, provided by the Pentagon in a hearing before the House Armed Services Committee, represent the fullest public accounting of the magnitude of a widening government investigation into bid-rigging, bribery and kickbacks by members of the military and civilians linked to the Pentagon’s purchasing system.

Read the rest at the NY Times

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