In shocking testimony made by the Pentagon’s top auditor on Monday, the Defense Department revealed that a former unit of the company where Vice President Cheney was CEO is under investigation for allegedly billing for unallowable costs, accepting bribes, falsifying time cards and overbilling.
The onetime unit of Halliburton, KBR, is now an independent company. Halliburton formally broke off ties with KBR in April 2007.
April Stephenson, head of the Pentagon’s contract audit agency, said she didn’t know of any contractor probed that had ever been cited for so many abuses. Of the 32 cases under criminal investigation, KBR constituted the “vast majority.”
“I don’t think we are aware of a program, a contract or a contractor that’s had this number,” Stephenson said.
The allegations of potential fraud began in February 2004, with the most recent one being in March of this year. Cheney was CEO of KBR’s then-parent company, Halliburton, from 1995-2000, in the years leading up to his election to the office of vice president.