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The Daily Cardinal Est. 1892
Thursday, May 02, 2024

U.S. firms take over post-war contracts

As assignments are being given in the rebuilding of post-war Iraq, members of the international community have yet to be offered the opportunity to be major players in the reconstruction. 

 

 

 

Bidding for the contracts to rebuild Iraq has been intentionally limited to American companies. Although there is potential for international involvement through subcontracts, there has not been a substantial international presence in these contracts either.  

 

 

 

According to the U.S. Agency for International Development, competition has been limited in the need to offer assistance quickly. 

 

 

 

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The U.S. Army Corps of Engineers awarded one exclusive contract for restructuring Iraqi oil fields to Kellogg Brown & Root, a unit of Halliburton. Vice President Dick Cheney is the former chief executive office of Halliburton.  

 

 

 

U.S. Rep. Henry Waxman, D-Calif., has suggested that the company's political ties have made it the only choice for the contract. Waxman aid Karen Lightfoot said \the [Halliburton] contract will be up for rebid, but the company will continue to get hundreds of millions of dollars until the rebidding process takes place.""  

 

 

 

""Halliburton has a reputation for overcharging, and eliminating competition from international companies has eliminated more competitive bids, which could end up costing the tax payer much less,"" she continued. 

 

 

 

Lightfoot said this contract needs to be reviewed to determine if the entire bidding process needs to be restructured. A Halliburton spokesperson was unavailable to comment. 

 

 

 

Another company, the Research Triangle Institute of North Carolina, has been contracted to assist in the rebuilding of Iraqi local governments. Reid Maness, a spokesperson for RTI, said they will be sending five representatives to Umm Qasr next week ""to begin discussion with professionals there to eventually engage Iraqi citizens and civic groups in rebuilding its government.""  

 

 

 

RTI and its subcontractors will be working with the people of Iraq, but all the subcontractors for RTI are currently American.  

 

 

 

President Bush has recently said that the role of the United Nations in rebuilding Iraq will be vital. The United Nations is discussing its position on this issue but has focused on its humanitarian assistance, which is the product of the Oil for Food program. The Oil for Food program uses revenue from sales of Iraqi oil to pay for humanitarian supplies in Iraq. 

 

 

 

""The Oil for Food program is essential for getting humanitarian supplies into Iraq and able to move anywhere throughout the country,"" one U.S. official said, who asked not to be named, told The Daily Cardinal.  

 

 

 

The contract for the Oil for Food program will be up for renewal on May 12, which will then determine how the United Nations continues its involvement in post-war Iraq. The U.S. official said any further involvement in Iraq will be up to the U.N. Security Council.

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