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Halliburton
paid bribes to get favorable tax treatment in Nigeria
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WASHINGTON,
May 9 (IslamOnline.net & News Agencies) - Oil services giant
Halliburton, already under fire over accusations that its White House
ties helped win a major Iraqi oil contract, has admitted Friday, May
9, that a subsidiary paid a multi-million dollar bribe to a Nigerian
tax official.
Halliburton,
once run by U.S. Vice-President Dick Cheney, paid 2.4 million dollars
in bribes to get favorable tax treatment in Nigeria.
"The
payments were made to obtain favorable tax treatment and clearly
violated our code of business conduct and our internal control
procedures," Halliburton said in a regulatory filing.
Cheney
led the company from 1995 until August 2000, when he became President
George W Bush's running mate.
Halliburton
subsidiary Kellogg Brown and Root (KBR), which paid the bribe, has
been under scrutiny since it was awarded a government contract to run
Iraqi oil services without any bidding process.
KBR
is building a liquefied natural gas plant and an offshore oil and gas
terminal in Nigeria, reported Agence France-Presse (AFP).
Halliburton
told the Securities and Exchange Commission the bribe was discovered
during an audit of KBR's Nigerian office.
The
company, which claimed none of its senior officers were involved,
conducted an investigation into the situation and fired 'several'
employees based on the investigation's findings.
Fat
Contracts
Halliburton
came under fire Wednesday, May 7, for revelations it had been awarded
fat contracts for reconstruction of Iraq's oil industry.
Democrats
say the contracts, awarded behind closed doors, run counter to the
Bush administration's public pledges that the Iraqi oil industry will
be run for and by the Iraqi people.
Previously,
the U.S. Army said it had awarded KBR a contract for oil
well firefighting.
However
Democratic lawmaker Henry Waxman has revealed that the contract, which
was awarded without the standard public tender procedure, also
includes oil production and distribution.
"It
now appears however, that the contract with Halliburton -- a company
with close ties to the (Bush) administration -- can now include
'operation' of Iraqi oil fields and 'distribution' of Iraqi oil,"
wrote Waxman to Lt. Gen. Robert Flowers of the U.S. Army Corps of
Engineers.
Lee
Drutman of Citizen Works, a consumers association led by former Green
Party presidential candidate Ralph Nader, agreed that the nature of
the contract would raise questions, particularly given the Cheney
connection.
"It's
troubling that this contract was done behind closed doors... whenever
there is secrecy it invites skepticism," Drutman said.
"Certainly
when it is the vice-president's former firm, that invites a lot of
people to question the nature of this deal and raises a lot of
questions about the administration's policy," he added.
Asked
about Halliburton's role in Iraq, White House spokesman Ari Fleischer
said: "It's not a White House issue ... the White House does not
get involved in who gets contracts."
The
United States -- which fought a war in Iraq to rid the country of its
alleged weapons of mass destruction, none of which have so far been
found -- has always said that Iraq's oil industry belongs to that
country's people and not to America.
Halliburton
has also come under fire from lawmaker Waxman for its dealings with
countries such as Iran, Iraq and Libya despite U.S. embargoes, via
subsidiaries in foreign countries and territories such as the Cayman
Islands.
The
company did not deny Waxman's charges, but stressed it had always
acted in complete legality in the countries where its clients were
based.