Tuesday, March 15, 2005
Iraq Reconstruction

Administration Withheld Halliburton Overcharges from International Auditors

Rep. Waxman revealed today that Administration officials, acting at the request of Halliburton, redacted a Pentagon report to conceal more than $100 million in fuel overcharges from international auditors. In letters to government auditors, Halliburton subsidiary KBR explains that it redacted statements that it considered "factually inaccurate or misleading" and gives consent for the release of the audits to international auditors "in redacted form." The Administration then sent the heavily redacted report to the International Advisory and Monitoring Board overseeing the Development Fund for Iraq, the fund established by the U.N. for the management of Iraq’s oil sales and foreign donations.

An interactive feature reveals the extent of the redactions in the first ten pages of the Pentagon report.

Rep. Waxman has released the original Defense Department audit report with Halliburton's edits highlighted. In light of this new information, Rep. Waxman has asked National Security Subcommittee Chairman Shays to hold immediate hearings on U.S. management of the Development Fund for Iraq.