Salon: Bush is gone, but Halliburton keeps cashing checks

Bush is gone, but Halliburton keeps cashing checks

The U.S. government continues to pay the company huge sums, despite allegations of overbilling and faulty work.

By Pratap Chatterjee



http://www.salon.com/opinion/feature/2009/06/03/chatterjee/index.html

June 3, 2009 | The Houstonian Hotel is an elegant, secluded resort set on an 18-acre wooded oasis in the heart of downtown Houston. Two weeks ago, David Lesar, CEO of the once notorious energy services corporation Halliburton, spoke to some 100 shareholders and members of senior management gathered there at the company's annual meeting. All was remarkably staid as they celebrated Halliburton's $4 billion in operating profits in 2008, a striking 22 percent return at a time when many companies are announcing record losses. Analysts remain bullish on Halliburton's stock, reflecting a more general view that any company in the oil business is likely to have a profitable future in store.

There were no protesters outside the meeting this year, nor the kind of national media stakeouts commonplace when Lesar addressed the same crew at the posh Four Seasons Hotel in downtown Houston in May 2004. Then, dozens of mounted police faced off against 300 protesters in the streets outside, while a San Francisco group that dubbed itself the Ronald Reagan Home for the Criminally Insane fielded activists in Bush and Cheney masks, offering fake $100 bills to passersby in a mock protest against war profiteering. And don't forget the 25-foot inflatable pig there to mock shareholders. Local TV crews swarmed, a national crew from NBC flew in from New York, and reporters from the Financial Times and the Wall Street Journal eagerly scribbled notes.

Now the 25-foot pigs are gone and all is quiet on the western front. How did Halliburton, once branded the ugly stepchild of Dick Cheney -- the company's former CEO -- and a poster child of war profiteering, receive such absolution from antiwar activists and the media? Of course, the defeat of the Republicans in the 2008 election, the departure of the Bush administration, and a general apathy toward the ongoing, but lower-level war in Iraq are part of the answer, but don't ignore a potentially brilliant financial sleight of hand by Halliburton either. That move played a crucial role in the cleansing of the company.

Halliburton has been doing work in war zones since the early 1960s, when it acquired the construction company Brown & Root and was tasked by the Pentagon with building the infrastructure for the Vietnam War. Back in those days, it was vilified as "Burn & Loot." After more than three decades in news obscurity, in March 2003, with the invasion of Iraq, it suddenly returned to national attention. After all, not only had its former CEO been beating the public drums for an invasion, but its subsidiary KBR (the old Brown & Root) had been given a vast, open-ended, multi-billion dollar contract to build and maintain the new infrastructure of bases that the U.S. military was rushing to construct in that country.