The U.S. Army agreed to pay Halliburtons KBR subsidiary nearly $2 billion for work that nobody can prove ever took place. The work was allegedly performed in Iraq and Kuwait under the Armys LOGCAP contract, awarded to KBR in 2001 via competitive bidding.
Under LOGCAP, KBR is responsible for military logistics, which includes feeding the troops, transporting military supplies, constructing military housing and offices, and maintaining laundry facilities. KBR is reimbursed by the Pentagon for its costs, then paid a fee of one to three percent of those costs. So far, KBR has received $6.4 billion for work under LOGCAP.
Army auditors determined last year that 43 percent of the $4.5 billion requested by Halliburton under LOGCAP could not be verified under normal accounting procedures.
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