Insurance, Security Eat Iraq Contractors' Profit

http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=4814651

LONDON (Reuters) - Spiralling violence in Iraq has driven costs sky high for foreign firms working on the billions of dollars in reconstruction contracts, with the price of insuring some workers doubling in the past week.

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"High risk workers saw insurance rates nearly double toward the end of last week," Claire Heneghan of London-based insurance broker Heath Lambert said.

For example, the annual premium to insure around 100 staff doubled to $16,000 per worker last week for an individual policy worth $200,000, Heneghan said.

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Foreign firms employ tens of thousands of staff in Iraq working on reconstruction, funded mostly by $18.6 billion in U.S. contracts being overseen by the Coalition Provisional Authority.

Texas firm Halliburton, the U.S. military's biggest contractor in Iraq, says about 30 of its staff and sub- contractors for subsidiary Kellogg Brown and Root have been killed in Iraq and seven workers are missing.

...more...

the contracts are on a "cost-plus" basis. The taxpayers are underwriting their profit margin.

that are raking it in now? This just adds to their overhead to be paid by you and me!

discuss here

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=483717