Does anyone have any information on these two rumors?
1) Halliburton was given a no-bid contract for their services in Iraq and the Middle East. Does anyone know whether this information is true or not?
2) Dick Cheney has a nice little golden parachute that allows him to return to Halliburton two years after leaving his governmental roles?
Any truth to either of these rumors?
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1) My understanding is that Haliburton was awarded a contract under a new streamlined procedure which allows for expedited decisions, in the event of war, etc. So there was not the typical bidding procedure.
I also understand that Haliburton was NOT the low bidder on a contract during the Clinton era, but it was awarded to them anyway. Oftentimes one has to look at everything about a bid - competence, not just price.
John Edwards, Kerry's running mate, was asked during the 2004 election whether a Kerry administration would stop using Haliburton. He refused to say they would cease doing so.
I would be interested in seeing Haliburton's stock performance over the past six years. that may indicete best whether war has been "good for business" for them.
2) I believe that like many executives (rightly or wrongly), Cheney received a huge retirement package when he left the company. for tax reasons, it is being paid over time, but there is no possible variation in the payment amount. He receives the same amount no matter how the company does. He's resigned his job and they are not currently paying him. Whatever he is owed is just being deferred. I suppose if the compay goes bankrupt he would not get the remaining money, unless they have set up some kind of annuity.
I suppose they could hire Cheney back any time if they wanted to. There may be laws preventing people from going right from the government to business. If not, maybe there should be.
1 - Essentially, yes.
2 - Dunno (and, if true, I don't find it particularly significant).
As a point of interest, Halliburton's first no-bid contract was awarded during Bill Clinton's administration in response to requests by the military services that they not have to deal with thousands (yes, thousands!) of contractors.
It was one of the military's answers to the requirement that they reduce costs. The idea was that fewer contractors to manage meant fewer military buildings filled with military contract managers pushing paper.
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1) True, Bechtel was excluded at the last minute
2) Don't know but Halliburton can hire any one they want.
1) true
2) He still owns stock. Will he return? If he wants to. He won't need the money.
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