Bush Scandals List

239. Auditor of no bid KBR Iraq contract demoted

Bunnatine Greenhouse was a chief contracting officer for the Army Corps of Engineers who criticized contracts given to Halliburton subsidiary KBR in the runup to the Iraq war, in particular an "emergency" (to avoid regular bidding procedures) $7 billion Restore Iraq Oil no bid contract to last up to 5 years. The obvious problem here is that an emergency contract should be used to address immediate needs. While the KBR contract could have been let on an emergency basis to cover those initial needs, there was no reason to continue it for any length of time and certainly not for 5 years on a no bid basis. In other words, it should have been allowed to run for no more than a year without opening it up for bidding, especially since other companies existed which could do the work. A Pentagon audit independent of Greenhouse but validating her concerns found that KBR had overcharged the government by $61 million for fuel deliveries under the contract. Greenhouse’s superiors, however, granted KBR a waiver and quashed the audit. In October 2004, Greenhouse was informed she would be demoted.

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