Giving Halliburton control over Iraqi oil "seems at odds with the administration's repeated assurances that the Iraqi oil belongs to the Iraqi people," said Waxman

WASHINGTON, May 7 (IslamOnline.net & News Agencies) - The U.S. Army has admitted for the first time that the contract granted to a subsidiary of Halliburton Co. -- run by U.S. Vice President Dick Cheney from 1995 to 2000 – encompasses the operation of Iraqi oil fields.

In a letter replying to questions from a senior Democratic lawmaker, Henry Waxman, the army said the contract included "operation of facilities and distribution of products," Agence France-Presse (AFP) reported Wednesday, May 7.

"Your May 2 letter indicates that the contract is considerably broader in scope than previously known," Waxman, the top-ranking Democrat in the House of Representatives' committee on government reform, told Army Corps of Engineers military programs chief Lieutenant General Robert Flowers.

"Prior descriptions of the Halliburton contract had indicated that the contract was for extinguishing fires at oil wells and for related repair activities," the lawmaker said, according to a copy of the letter.

"These new disclosures are significant and they seem at odds with the administration's repeated assurances that the Iraqi oil belongs to the Iraqi people."

The Army Corps of Engineers claimed the Halliburton contract was designed as a temporary bridge to a contract that would be out to competitive tender.

It expected the replacement contract to be advertised by early summer and awarded at the end of August.

Previously, the U.S. Army Corps of Engineers had described the contract given to Halliburton as only involving oil well firefighting.

The Center for Responsive Politics recalled that Halliburton had poured 17, 6 million dollars into Bush's 2000 presidential campaign.

Links To "Axis of Evil"

In another letter sent by Waxman to U.S. Defense Secretary Donald Rumsfeld on April 30, the lawmaker accused Halliburton of having done business in Iran, Iraq and Libya for years despite U.S. embargoes.

Waxman's letter said Halliburton's dealings with countries cited by Washington as state sponsors of terrorism or members of the so-called "axis of evil" dates back to the 1980s.

He wrote to Rumsfeld, "I would like to know what the Defense Department knows about these ties and whether you think this should be a matter of concern to the Congress and the American taxpayer.

"Rather than being criticized, the company is rewarded with valuable government contracts."

"There is also evidence from press accounts and other sources that indicates that Halliburton has profited from numerous business dealings with state sponsors of terrorism, including two of the three members of President Bush's 'axis of evil,'" Waxman said.

The dealings "appear to have continued during the period between 1995 and 2000, when Cheney headed the company; and they are apparently ongoing even today," said Waxman.

The "axis of evil" first cited by Bush in early 2002 – in the wake of the hijackings attacks on Washington and New York, included Iraq, prior to the U.S.-led war, Iran and North Korea.

Waxman, however, stopped short of saying Halliburton's actions violated U.S. laws that prohibited business dealings in certain countries, but maintained that Halliburton "appears to have sought to circumvent these restrictions by setting up subsidiaries in foreign countries and territories such as the Cayman Islands."

Some of the involvement of Halliburton is detailed in company documents including its annual reports.

Halliburton spokesman Wendy Hall, for his part, did not dispute the Waxman charges, but said the company operated within the law while trying to remain competitive with U.S. and foreign rivals.

"Putting politics aside, we and our affiliates operate in countries, to the extent it is legally permissible, where our customers are active as they expect us to provide oilfield services support to their international operations," Hall said in a written statement.

"Where the United States government has mandated that United States companies refrain from commerce, we comply, often to the advantage of our international competitors. We do not always agree with policies or actions of governments in every place that we do business and make no excuses for their behaviors."

As for the actions of Halliburton offshore subsidiaries, Hall said, "The company believes that the operations of its subsidiaries are in compliance with U.S. laws. These entities and activities are staffed and managed by non-U.S. personnel."

But Citizen Works, a consumer advocacy group founded by onetime presidential candidate Ralph Nader, said Halliburton's treatment by the government was questionable.

"It's extremely troubling that our government is using taxpayer money to deliver lucrative contracts to companies like Halliburton that have used offshore subsidiaries to maneuver around restrictions on doing business with state sponsors of terrorism," said Nader's spokesman Charlie Cray.