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CNN Live Today
Postwar Questions and Political Dividends
Aired April 15, 2003 - 10:31 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Oil fires in Iraq were a top concern of the Bush administration. So much so that last month, the government tapped a subsidiary of Halliburton, the company Vice President Cheney used to run, to put out those fires, raising questions now of favoritism in Washington.
CNN's White House correspondent Dana Bash joins us now with more. What can you tell you about this, Dana?
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Heidi, some Democrats are calling for an investigation. But the question is, is there really any connection?
(BEGIN VIDEOTAPE)
BASH (voice-over): That is the perception in some corners: the war in Iraq is about oil. Protesters make much of the fact that the vice president was see CEO of Halliburton from 1995 to 2000.
Adding fuel is this: last month the Army Corps of Engineers awarded to Halliburton subsidiary, Kellog Bran and Root a contract worth as much as $7 billion to put out oil well fires in Iraq.
A prominent Democrat wants an investigation into why other companies were not invited to compete.
REP. HENRY WAXMAN (D), CALIFORNIA: This is particularly troubling because Vice President Cheney came from Halliburton, received many, many millions of dollars from the, is still receiving some deferred compensation from Halliburton.
BASH: But the Army Corps of Engineers says KBR did win a 2001 contract positioning them to put out the oil fires and they were only company capable of handling the -- quote -- "complex classified job."
The vice president's office maintains he severed all corporate ties with Halliburton. Quote -- "He has nothing at all to do with awarding these contracts, the bidding process or the current work orders."
Mr. Cheney still receives compensation from Halliburton, about $150,000 annually until 2005. But that is salary from 1999, which he chose to defer before running for vice president, and sources close to him say he gets the money no matter Halliburton fares financially.
Despite the perception problems for the vice president, a leading expert says the reality is quite different.
STEVEN SCHOONER, GWU LAW SCHOOL: There's really no chance that the vice president is actually exerting influence on this. One thing that's difficult to keep in mind is that a war decision for contracts are made by career civil servants. The politically appointed leaders are not going to get to choose the contractors.
BASH: Industry insiders concede there is no question Halliburton hired Mr. Cheney for his contacts in Washington and the Middle East. Halliburton's government work doubled during his tenure there. but analysts say the relationship is different today.
JIM WICKLAND, BANK OF AMERICA ANALYST: No public company, I don't think, would be foolish enough to try and call in favors on such an obvious basis.
BASH: Halliburton says accusations of preferential treatment are off base, that company's government work dates back 60 years.
Still, there are signs they're aware of suggestions of favoritism.
Halliburton was invited to bid for a $600 million U.S. AID contract as primary rebuilder of Iraq's infrastructure. The company declined to compete for the high profile job, planning instead to bid for subcontracting work less likely to make headlines.
(END VIDEOTAPE)
BASH: But the big contracts are yet to come. Iraq hasn't had its oil fields upgraded in about a dozen years and Halliburton is likely to get at least some of the work to modernize those. That could be some lucrative work. So, as one analyst put it, "some of the partisan rocks have still yet to be thrown" -- Heidi.
COLLINS: All right. Dana Bash from the White House this morning, thanks so much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired April 15, 2003 - 10:31 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Oil fires in Iraq were a top concern of the Bush administration. So much so that last month, the government tapped a subsidiary of Halliburton, the company Vice President Cheney used to run, to put out those fires, raising questions now of favoritism in Washington.
CNN's White House correspondent Dana Bash joins us now with more. What can you tell you about this, Dana?
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Heidi, some Democrats are calling for an investigation. But the question is, is there really any connection?
(BEGIN VIDEOTAPE)
BASH (voice-over): That is the perception in some corners: the war in Iraq is about oil. Protesters make much of the fact that the vice president was see CEO of Halliburton from 1995 to 2000.
Adding fuel is this: last month the Army Corps of Engineers awarded to Halliburton subsidiary, Kellog Bran and Root a contract worth as much as $7 billion to put out oil well fires in Iraq.
A prominent Democrat wants an investigation into why other companies were not invited to compete.
REP. HENRY WAXMAN (D), CALIFORNIA: This is particularly troubling because Vice President Cheney came from Halliburton, received many, many millions of dollars from the, is still receiving some deferred compensation from Halliburton.
BASH: But the Army Corps of Engineers says KBR did win a 2001 contract positioning them to put out the oil fires and they were only company capable of handling the -- quote -- "complex classified job."
The vice president's office maintains he severed all corporate ties with Halliburton. Quote -- "He has nothing at all to do with awarding these contracts, the bidding process or the current work orders."
Mr. Cheney still receives compensation from Halliburton, about $150,000 annually until 2005. But that is salary from 1999, which he chose to defer before running for vice president, and sources close to him say he gets the money no matter Halliburton fares financially.
Despite the perception problems for the vice president, a leading expert says the reality is quite different.
STEVEN SCHOONER, GWU LAW SCHOOL: There's really no chance that the vice president is actually exerting influence on this. One thing that's difficult to keep in mind is that a war decision for contracts are made by career civil servants. The politically appointed leaders are not going to get to choose the contractors.
BASH: Industry insiders concede there is no question Halliburton hired Mr. Cheney for his contacts in Washington and the Middle East. Halliburton's government work doubled during his tenure there. but analysts say the relationship is different today.
JIM WICKLAND, BANK OF AMERICA ANALYST: No public company, I don't think, would be foolish enough to try and call in favors on such an obvious basis.
BASH: Halliburton says accusations of preferential treatment are off base, that company's government work dates back 60 years.
Still, there are signs they're aware of suggestions of favoritism.
Halliburton was invited to bid for a $600 million U.S. AID contract as primary rebuilder of Iraq's infrastructure. The company declined to compete for the high profile job, planning instead to bid for subcontracting work less likely to make headlines.
(END VIDEOTAPE)
BASH: But the big contracts are yet to come. Iraq hasn't had its oil fields upgraded in about a dozen years and Halliburton is likely to get at least some of the work to modernize those. That could be some lucrative work. So, as one analyst put it, "some of the partisan rocks have still yet to be thrown" -- Heidi.
COLLINS: All right. Dana Bash from the White House this morning, thanks so much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
