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APKBR tax loophole raises new questions By ANNE FLAHERTY, Associated Press Writer
37 minutes ago
WASHINGTON - When it comes to paying federal taxes on its workers in Iraq, KBR says it was exempt because they were foreign hands hired through subsidiaries in the Cayman Islands.
But when it comes to job-related injuries, including those at an Iraqi water plant, the Houston-based defense contractor says those same workers are Americans who must file their grievances with the U.S. government.
Under federal compensation laws, U.S. companies working for the government in Iraq and elsewhere overseas are mostly shielded from employee lawsuits. The 1941 Defense Base Act entitles injured workers instead to government-funded medical care and other benefits.
"It's an unbelievable hypocrisy," Sen. Byron Dorgan, D-N.D., chairman of the Senate Democratic Policy Committee, said of KBR's position.
When asked to respond, KBR, which split from Halliburton last year, said it established its overseas subsidiaries in accordance with the law.
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http://news.yahoo.com/s/ap/20080620/ap_on_go_co/kbr_deadly_chemical;_ylt=AoPM7yAIo0eIQ_WMcDqEAYI8KbIF
Democrats accuse KBR of knowingly exposing workers to deadly chemical at Iraqi water plantWASHINGTON: Senate Democrats are accusing defense contractor KBR of knowingly exposing its employees and U.S. troops to a potentially deadly chemical in Iraq in its rush to get the country's oil infrastructure up and running.
Two former KBR employees are expected to testify Friday that company officials told workers in late July 2003 that an orange dust-like substance covering the grounds of a water pumping plant was a minor irritant and that exposure did not pose a health risk.
Ten days later, company officials acknowledged in a private meeting that the substance, sodium dichromate, had caused serious health problems, with nearly 60 percent of workers exhibiting symptoms.
"People are potentially exposed to something that may be very dangerous," says a memo detailing minutes from an Aug. 8, 2003, meeting of KBR project managers.
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http://www.iht.com/articles/ap/2008/06/20/america/NA-GEN-US-KBR-Deadly-Chemical.php