The FBI is looking into allegations by a whistleblower that the Army showed favoritism in awarding a $7 billion Iraq contract to Halliburton, reports the Los Angeles Times. The official, Bunnatine H. Greenhouse, chief of contracting with the Army Corps of Engineers, has alleged that the Army violated its own procurement rules in awarding the 2003 contract to Halliburton to repair Iraqi oil fields.
Greenhouse, in an Oct. 21 letter to the acting Army secretary, charged that officials had shown favoritism toward Halliburton, the Houston-based conglomerate formerly led by Vice President Dick Cheney, in the awarding and oversight of the oil contract. She also said officials at the Army Corps of Engineers had tried to remove her as chief contract monitor after she raised persistent questions about Halliburton contracts. After a public outcry, the Pentagon cut short the agreement after less than a year and $2.4 billion in expenditures and put the remaining work out for bid. The FBI is already investigating a reported $61 million overcharge by Halliburtion for importation of fuels into Iraq.