Ripped-off Army Won't Pay Corporate Thief Halliburton
By Sue Pleming
WASHINGTON (Reuters) - The U.S. Army will withhold payment on 15 percent of future invoices of Halliburton Co.'s (HAl.N: Quote, Profile, Research) logistics deal in Iraq due to an ongoing billing dispute, the company and the U.S. military said on Tuesday.
Linda Theis, a spokeswoman for the Army Field Support Command in Rock Island, Illinois, said the withholding could amount to about $60 million a month in payments to Halliburton unit Kellogg Brown and Root, the Army's biggest contractor in Iraq.
"We notified the company today. The withhold will not affect any past invoices but will be applied to future ones from tomorrow, August 18," said Theis.
Halliburton said the company would fight the Army's decision in court and would argue the 15 percent withholding should not apply to any of its Iraq work, which according to government estimates could top $18 billion.
"Halliburton is confident the government action is not justified and expects that its legal arguments will be upheld in litigation," said a company statement.
The announcement was at odds with information given by the Houston-based company on Monday that it believed the military had granted another extension on an earlier decision to suspend the withholding, which could potentially affect up to $8.2 billion in future work orders in Iraq. Halliburton argued on Tuesday its Monday statements "were accurate at the time based on clear oral assurances from senior Pentagon representatives."
Theis said it was unclear why Halliburton believed the Army had decided to grant another extension and said she was not aware of the final decision until early Tuesday.
SHARES HIT
The threat to dock payments has hung over the company for months because of a dispute over whether KBR properly documented bills for feeding and housing troops in Iraq and Kuwait. Two previous extensions were granted and another one had been expected by KBR when a deadline expired last Sunday. Halliburton shares slid more than 4 percent, or $1.14, to $26.65 in Tuesday morning trade on the New York Stock Exchange. The shares have tumbled 16 percent since the beginning of August.
WASHINGTON (Reuters) - The U.S. Army will withhold payment on 15 percent of future invoices of Halliburton Co.'s (HAl.N: Quote, Profile, Research) logistics deal in Iraq due to an ongoing billing dispute, the company and the U.S. military said on Tuesday.
Linda Theis, a spokeswoman for the Army Field Support Command in Rock Island, Illinois, said the withholding could amount to about $60 million a month in payments to Halliburton unit Kellogg Brown and Root, the Army's biggest contractor in Iraq.
"We notified the company today. The withhold will not affect any past invoices but will be applied to future ones from tomorrow, August 18," said Theis.
Halliburton said the company would fight the Army's decision in court and would argue the 15 percent withholding should not apply to any of its Iraq work, which according to government estimates could top $18 billion.
"Halliburton is confident the government action is not justified and expects that its legal arguments will be upheld in litigation," said a company statement.
The announcement was at odds with information given by the Houston-based company on Monday that it believed the military had granted another extension on an earlier decision to suspend the withholding, which could potentially affect up to $8.2 billion in future work orders in Iraq. Halliburton argued on Tuesday its Monday statements "were accurate at the time based on clear oral assurances from senior Pentagon representatives."
Theis said it was unclear why Halliburton believed the Army had decided to grant another extension and said she was not aware of the final decision until early Tuesday.
SHARES HIT
The threat to dock payments has hung over the company for months because of a dispute over whether KBR properly documented bills for feeding and housing troops in Iraq and Kuwait. Two previous extensions were granted and another one had been expected by KBR when a deadline expired last Sunday. Halliburton shares slid more than 4 percent, or $1.14, to $26.65 in Tuesday morning trade on the New York Stock Exchange. The shares have tumbled 16 percent since the beginning of August.
posted by BLONDIE at 11:12 AM
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