KBR contract overseer replaced for ... oversight
A BUZZFLASH NEWS ALERT
by Amy Weiss
Charles M. Smith, the man responsible for managing the military contract with KBR in Iraq during the first two years of the war, told The New York Times Tuesday he was removed from his position because he held off paying KBR over $1 billion in non-specific charges pending further information, calling into question yet again the Bush Administration's connection to defense contractors.
KBR, formerly known as Kellogg, Brown and Root, is a subsidiary of Halliburton with contracts totaling $20 billion so far for providing food, shelter, and more for U.S. troops in Iraq. Despite an investigation into the charges Smith found suspicious, KBR was included in a recently signed 10-year contract.
After Smith was replaced in his position, the Army hired the RCI Holding Company to conduct an internal review of KBR's charges, ultimately agreeing to pay most of what Smith withheld. Though Pentagon and Army officials have alleged RCI did not use information obtained from the Army's internal Defense Contract Audit Agency, their parent corporation, Serco, has been hired to supervise KBR under the new 10-year contract.
In the Times article, Chairman of the House Committee on Oversight and Government Reform, Rep. Henry Waxman (D-CA), was quoted as saying the report Smith gives "is startling, and it confirms the committee's worst fears. KBR has repeatedly gouged the taxpayer, and the Bush administration has looked the other way every time."
A BUZZFLASH NEWS ALERT
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