Obama Questions Halliburton's Move to Dubai
Monday, March 12, 2007
Printable FormatFOR IMMEDIATE RELEASE
Contact: Ben LaBolt
HQ Moves Offshore After Receiving Billions from Taxpayer Funded Govt. Contracts
WASHINGTON, DC -- Today, Sen. Obama sent a letter to President Bush condemning Halliburton’s decision to move its top corporate officers from the United States to Dubai after receiving billions in business from taxpayer funded government contracts:
March 12, 2007
President George W. Bush
The White House
Washington, DC
Dear Mr. President:
It is troubling that an American company that has been awarded $25.7 billion in United States government contracts for Iraq reconstruction now plans to move its corporate headquarters from the United States to the United Arab Emirates. The announcement by Halliburton that its Chairman, President and CEO will move from Houston to Dubai to open a new corporate headquarters raises important tax, oversight, and national security questions that must be answered.
Halliburton is already embroiled in controversy over its mismanagement of government property including weapons in Iraq, its inadequate recordkeeping that prevents effective government oversight, and $2.7 billion worth of unsupported billing. These recent problems compound existing concerns about a Halliburton Dubai affiliate, which was registered in a tax haven and reportedly has conducted business with Iran, possibly in contravention of the Iran Libya Sanctions Act. Given the prominent role Halliburton continues to play in the reconstruction of Iraq and the growing use of private security contractors alongside American service members overseas, the American people have a right to answers.
Halliburton is, of course, free to set up its headquarters wherever it chooses, and the United Arab Emirates is free to attract United States firms. But the American people expect their elected representatives to make sure that government contractors are working in the best interests of Americans. They don’t want our tax dollars wasted, our laws broken, or our security interests outsourced to unaccountable firms that won’t prioritize their allegiance to the United States.
Americans have a right to know and Congress has an obligation to ask:
- Will any new national security measures or contracting procedures be required to ensure no additional risk to U.S. operations or American service members?
- Will the change of corporate headquarters affect Halliburton’s eligibility for U.S. government contracts that have amounted to $6-8 billion annually for the past several years?
- How many American jobs will be lost as a result of moving Halliburton’s corporate headquarters from Houston to Dubai?
- What is the short-term and long-term projected loss of U.S. tax revenues due to Halliburton’s move?
- Will the move further weaken government oversight of Halliburton’s activities or jeopardize any ongoing investigation related to improper billing or unacceptable contracting practices?
I urge you and the Vice President to consider all the implications of Halliburton’s announcement and move quickly to reassure the American people that the national interest – not the interests of Halliburton’s executives, its shareholders, or the people of Dubai – will drive United States policy at home and abroad.
Sincerely,
Barack Obama