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Government Should Consider Suspending Halliburton Contracts

August 18, 2004 


The government should consider suspending or debarring Halliburton from receiving future government contracts given their inability to account for $1.8 billion and numerous cases of corporate misconduct. (see Center for Public Integrity).

"By law, the federal government is prohibited from doing future business with risky companies. Halliburton's accounting fiasco is the clearest example we have seen in years that merits suspension or debarment by the government. Halliburton is treating our nation's taxpayer dollars like Monopoly money," said Danielle Brian, Executive Director of the Project On Government Oversight (POGO).

Many of the U.S. government's largest contractors were found to have repeatedly broken the law or engaged in misconduct, according to investigations by POGO in 2001 and 2002. However, they were never temporarily suspended or debarred from gaining additional government contracts, contrary to Reagan/Bush era laws.

Since POGO's investigation, federal officials have more closely followed laws that require the government to bar unethical companies from government contracts. As a result, for the first time in more than a decade, major contractors involved in misconduct were suspended including Enron, MCI/Worldcom, and defense contractor Boeing.

Halliburton has been one of the fastest-growing defense contractors, seeing increases of government revenues go from $483 million in FY 2002 to $3.92 billon in FY 2003, according to the Department of Defense. As a result their ranking went from 37th largest to 7th largest defense contractor.

For more background information, see:

Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO's investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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