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U.S. Red-Faced Over Halliburton's Overcharges 

"If there is an overcharge, like we think there is, we expect that money to be repaid," Bush said

WASHINGTON, December 13 (IslamOnline.net & News Agencies) - A giant U.S. oil company, awarded a multi-billion no-bid contract  to rebuild Iraq's oil industry, embarrassed the Bush administration after overcharging U.S. forces in Iraq for fuel by up to $61 million, when the U.S. bluntly barred war opponents from competing for contracts to rebuild the oil-rich occupied country.

U.S. President George W. Bush said the company, which was once run by his Vice President Dick Cheney, should refund the money.

"If there is an overcharge, like we think there is, we expect that money to be repaid," Bush said.

A Pentagon audit confirmed that a Halliburton subsidiary - Kellogg, Brown and Root (KBR) - had charged U.S. forces more than the real prices of fuel for some of its deliveries, the BBC News Online reported Saturday, December 13.

Pentagon officials further revealed that the firm, which was awarded a multi-billion no-bid contract to rebuild Iraq's damaged oil industry, had been planning to charge $67 million too much for another contract to supply cafeteria services, the British broadcast added.

The audit found Halliburton was charging $1.09 more per gallon for gasoline it trucked into Iraq from Kuwait than for the same fuel imported from Turkey, according to the Associated Press (AP).

The Houston-based Halliburton, which gave generously to the Bush presidential campaign, retorted that the dangers of transporting oil to Iraq make it necessary to charge high prices.

The AP also revealed that the U.S. army is now reviewing bids to decide this month who will replace Halliburton and get the oil reconstruction deals worth up to $800 million in northern Iraq and $1.2 billion in the south.

Favoritism

Iraq contracts ban allows Bush’s campaign contributors to over bill U.S. taxpayers, said Howard 

Democrats, for their part, accused the Bush administration of favoring companies, which had close ties to the Republican Party.

"Bush is preventing entire nations from bidding on contracts in Iraq so his campaign contributors can continue to overcharge the American taxpayers," the BBC quoted as saying presidential hopeful Howard Dean.

Last May, in a CBS-New York Times poll, about half the respondents said they thought the administration gave contracts to companies because they had close Republican ties.

Halliburton has so far received $2bn in work since it was given the contract in March, the BBC said.

Other biggest U.S. contractors in Iraq is Bechtel, the construction firm that has an estimated one-billion-dollar contract to rebuild Iraq's infrastructure.

The Pentagon announced last week that firms from countries that opposed the U.S.-led invasion of Iraq, notably Canada, France, Germany and Russia, would not get  any of Iraq's prime reconstruction contracts.

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