Inner City Press
Global Inner Cities Report - January 31, 2006
Halliburton
Repays $9 Million, While Iraq’s Oil Remains Unmetered
Byline: Matthew
Russell Lee, Inner City Press U.N. Correspondent
January 31, NEW YORK – The U.S.
government has required Halliburton subsidiary Kellogg, Brown & Root to repay
only $9 million on a controversial contract, and promised information about the
metering of Iraq’s oil output has still not been provided, in the
stealth January 30 release by
the International Advisory and Monitoring Board for Iraq.
The IAMB last took
questions from the media, including Inner City Press, on December 28 at the
United Nations in New York. At that time, IAMB stated that an oil metering
contract had recently been let. It promised to provide more information shortly.
Inner City Press twice asked the IMF for this additional information, but none
was provided. Then on January 30 a summary of a January 23 meeting in Paris was
placed online. The release tersely
states that at the meeting, the IAMB
“reiterated its concern that key
actions, especially the installation of an oil metering system, were taking a
long time to implement. The IAMB urged the Government of Iraq to implement all
IAMB recommendations promptly."
Apparently, the December 28
statement that the oil metering contract was in place was incorrect. No one has
apologized, and the (unmetered) oil continues to flow. The Jan. 30 release also
states, in the nature of
disclosure:
“The U.S. Government informed
the IAMB that a global settlement of all six DFI funded task orders under the
KBR contract was reached between the U.S. Government and KBR on December 22,
2005. The settlement provided for a reduction of contract costs of US$9
million.”
This is much less than had
been contested, and previously reported. Given the costs, most importantly in
lives, of this Iraq war, what kind of transparency is this? It also raises
questions, on timing and other issues, in light of Halliburton's January 27
announcement that it intends to sell off a stake in Kellogg, Brown & Root in an
initial public offering of stock. Developing...
Inner City Press's
last report on this topic:
More Questions than Answers about
the Development Fund for Iraq: Representatives of Iraq Absent from UN Meeting
and Press Conference, Purportedly Due to Visa Problems
On
December 28, four of the five members of the oversight board of the Development
Fund for Iraq answered reporters’ questions for an hour at the United Nations in
New York. Missing was the representative of Iraq on the
International Advisory and Monitoring Board.
The explanation offered by the IAMB’s chairman Jean-Pierre Halbwachs was that
the Iraqi representatives had not been able to obtain U.S. visas in time. Their
absence proved convenient, as questions soon arose about a line in Mr. Halbwachs
prepared remarks, regarding the ongoing lack of metering on oil production in
Iraq. Mr. Halbwachs read out: “we understand that a recent agreement has been
reached between the Government of Iraq and a U.S. company to undertake the task”
of oil metering.
When
asked for the name of the U.S. company, the IAMB chairman’s response was that
only the Iraqi representatives would have that information. When a question
arose about the Iraqi representative’s written reference to the cost of metering
being covered by “donations,” no answer was forthcoming. When asked why it has
taken two years to make even this gesture toward metering, the representative of
the Arab Fund for Economic and Social Development
Khalifa Ali Dau shrugged and smiled. Finally,
the IMF’s deputy press secretary said he will be providing follow-up information
about the metering contract (presumably on the IAMB’s web site,
www.iamb.info).
There
were questions about KPMG’s partial audit, and
Halliburton’s subsidiary
Kellogg, Brown & Root. The IMF’s
representative Bert Keuppens confirmed reports
of oil smuggling out of, and in some cases back into, Iraq. (For another report,
which puts the Iraqi absence last, see
CNN.
The UN’s own write-up is
here).
-- Jean-Pierre Halbwachs
briefing reporters on Dec. 28
When
asked in conclusion to assign a grade to the transparency of the spending
process at the Development Fund for Iraq, the World Bank’s representative
Fayezul Choudhury declined to assign a grade, and
pointed out that even most European Union countries, and also the United States,
have only qualified opinions from their auditors. The press conference ended
with many questions unanswered. The IMF’s Bert Keuppens rushed out of the
briefing room. He returned a few minutes later and handed out two business
cards. It would have made sense, one wag said, to provide contact information
for the representatives to the IAMB from Iraq. And to have thought more deeply
about this question of their visas. The IAMB's online self-description:
"The IAMB shall consist of duly qualified representatives of
each of the Secretary-General of the United Nations, the Managing Director
of the International Monetary Fund, the Director-General of the Arab Fund
for Economic and Social Development and the President of the International
Bank for Reconstruction and Development and a duly qualified individual
designated by the Government of Iraq.
"B. The IAMB, after consulting with the Government of Iraq,
may appoint up to 5 observers to the IAMB from a list of independent,
qualified candidates, which should include Iraqi nationals nominated by the
Government of Iraq.
"C. At any meeting of the IAMB, each member may be
accompanied by an alternate, designated in a way identical to the
designation of each member, and up to two advisors."
Neither the Iraqi representative
nor his alternate / deputy nor even advisors were present, for the meeting
or to answer questions.
Again, the IAMB’s web site is
www.iamb.info...
Other Inner City Press
reports are archived on
www.InnerCityPress.org -
For reporting about banks, predatory
lending, consumer protection, money laundering, mergers or the Community Reinvestment Act (CRA), click
here for Inner
City Press's
weekly CRA Report.
Inner City Press also reports weekly concerning the
Federal Reserve,
environmental justice,
global inner cities, and
on the United
Nations. Follow those links
for more of Inner City Press's reporting, or, click
here
for five ways to
contact us,
with or for more information.
©opyright 2005-2006 Inner City Press, Inc. To request
reprint or other permission, e-contact Editors [at] innercitypress.com - phone: (718) 716-3540