Reconstruction of Iraq contractors

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Expect also a flourishing business in war profiteering consultancies to grease the way for obtaining business opportunities in Iraq, for instance, (Bush's) New Bridge Strategies and (Ahmad Chalabi's) Iraqi International Law Group.

A team of investigative reporters in Iraq have found a pattern of waste, fraud and abuse among U.S. companies receiving multi-million-dollar reconstruction contracts in the country, including massive over-charges for projects; shoddy work or a failure to complete tasks; and ignoring local experts who contend they could do the job better and cheaper. The in-depth report by CorpWatch's Pratap Chatterjee and Focus on the Global South's Herbert Docena, published in the latest issue of Southern Exposure magazine, is an on-the-ground account of how U.S. taxpayer money given to Bechtel, Halliburton and other companies is being spent. [1]

The Web of Reconstruction

See the "Web of Reconstruction" Diagram posted online by GovExec.com.

Reconstruction of Iraq contractors and subcontractors

Contractors and subcontractors include the following:

  • Also see:

According to the September 30, 2003, New York Times:

"As part of the administration's postwar work in Iraq, the government has awarded hundreds of millions of dollars in contracts to American businesses. Those contracts, some without competitive bidding, have included more than $500 million to support troops and extinguish oil field fires for Kellogg, Brown & Root, a subsidiary of Halliburton, which Vice President Dick Cheney led from 1995 until 2000.

"Of the $3.9 billion a month that the administration is spending on military operations in Iraq, up to one-third may go to contractors who provide food, housing and other services, some military budget experts said. A spokesman for the Pentagon said today that the military could not provide an estimate of the breakdown.

"Administration officials, including L. Paul Bremer III, the top American official in Iraq, have said all future contracts will be issued only as a result of competitive bidding. Already, the Web site for the Coalition Provisional Authority, http:// cpa-iraq.org/, lists 36 recent solicitations, including those for contractors who might sell new AK-47 assault rifles, nine-millimeter ammunition and other goods for new army and security forces."

As of September 12, 2003, according to the government's web site at www.export.gov/iraq/contracts, "The United States Agency for International Development (USAID) and U.S. Department of Defense (DOD) are the primary agencies granting contracts. In addition, the Department of State has awarded a contract in law enforcement support. To date, USAID has awarded nine ten contracts [sic] and four grants. The U.S. Army Corps of Engineers has awarded one contract for Iraqi oil infrastructure planning and three contracts in anticipation of potential contingency contract requirements in U.S. Central Command's area of operations.

"Each of the awarded contracts may require subcontract work or the hiring of additional employees. Prime contractors select their own subcontractors or employees."

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