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CNN Live Saturday

Lautenberg Calls for Congressional Probe Into Halliburton

Aired May 10, 2003 - 18:41   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.


FREDRICKA WHITFIELD, CNN ANCHOR: As the Senate prepares attack of the president's proposed tax cut, one of its members is also focusing on the vice president, but for entirely different reasons. Senator Frank Lautenberg is asking a Senate panel to investigate a contract awarded to Dick Cheney's former company. Let's turn now to CNN's Chris Plante at the Pentagon for that story -- Chris.
CHRIS PLANTE, CNN CORRESPONDENT: Hi, Fredricka, that's right. It's Senator Lautenberg spearheading the effort, he is a Democrat from New Jersey, and the problem that they have with this contract is two- fold. First of all, the Pentagon awarded the contract, the Army Corps of Engineers awarded the contract to Halliburton, without going through the normal competitive bidding process. That in and of itself could be a significant problem. The Pentagon insists that they are the only company for the job and that's why they did it that way.

The second part of the problem is that Dick Cheney, who was secretary of defense during the first Bush administration, left government to go become the CEO at Halliburton, and then came back in as vice president. The White House and the Pentagon insist that Mr. Cheney had nothing to do with the awarding of the contract, that they went through a normal process, but certainly, they have at least a serious perception problem on their hands -- Fredricka.

WHITFIELD: Well, Chris, is it the feeling that even though this may have been the only company that bid to pick up the pieces and help complete this job, that, perhaps, because of that perception problem, there should have been a lobbying effort perhaps for the White House to try and recruit some other company?

PLANTE: Well, in fact, there were other companies that were interested in the contract. That the Pentagon -- the problem is that the Pentagon did not really open it up to bidding. And, yes, that's a serious issue, at least when it comes to a number of other companies that would have liked to have been able to compete for this contract, which was originally suggested to be valued of up to $7 billion had the damage to the oil fields been more severe that it was. Now estimated to be about $600 million, still a significant amount of money.

WHITFIELD: So this investigation, will that include any kind of public hearings on Capitol Hill, (UNINTELLIGIBLE) justice played out on television, or, you know, what are the potential scenarios?

PLANTE: It seems rather unlikely given that the Republicans are in control of the Senate and they control the committees that would have to call for these hearings, that there would be hearings. It's possible that Senator Lautenberg and other Democrats could raise enough of a stink where they would demand public hearings, but at this point it looks more like a police investigation with what is effectively a paper report.

WHITFIELD: All right, Chris Plante, thanks very much, from the Pentagon.

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 May 10, 2003 - 18:41   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: As the Senate prepares attack of the president's proposed tax cut, one of its members is also focusing on the vice president, but for entirely different reasons. Senator Frank Lautenberg is asking a Senate panel to investigate a contract awarded to Dick Cheney's former company. Let's turn now to CNN's Chris Plante at the Pentagon for that story -- Chris.
CHRIS PLANTE, CNN CORRESPONDENT: Hi, Fredricka, that's right. It's Senator Lautenberg spearheading the effort, he is a Democrat from New Jersey, and the problem that they have with this contract is two- fold. First of all, the Pentagon awarded the contract, the Army Corps of Engineers awarded the contract to Halliburton, without going through the normal competitive bidding process. That in and of itself could be a significant problem. The Pentagon insists that they are the only company for the job and that's why they did it that way.

The second part of the problem is that Dick Cheney, who was secretary of defense during the first Bush administration, left government to go become the CEO at Halliburton, and then came back in as vice president. The White House and the Pentagon insist that Mr. Cheney had nothing to do with the awarding of the contract, that they went through a normal process, but certainly, they have at least a serious perception problem on their hands -- Fredricka.

WHITFIELD: Well, Chris, is it the feeling that even though this may have been the only company that bid to pick up the pieces and help complete this job, that, perhaps, because of that perception problem, there should have been a lobbying effort perhaps for the White House to try and recruit some other company?

PLANTE: Well, in fact, there were other companies that were interested in the contract. That the Pentagon -- the problem is that the Pentagon did not really open it up to bidding. And, yes, that's a serious issue, at least when it comes to a number of other companies that would have liked to have been able to compete for this contract, which was originally suggested to be valued of up to $7 billion had the damage to the oil fields been more severe that it was. Now estimated to be about $600 million, still a significant amount of money.

WHITFIELD: So this investigation, will that include any kind of public hearings on Capitol Hill, (UNINTELLIGIBLE) justice played out on television, or, you know, what are the potential scenarios?

PLANTE: It seems rather unlikely given that the Republicans are in control of the Senate and they control the committees that would have to call for these hearings, that there would be hearings. It's possible that Senator Lautenberg and other Democrats could raise enough of a stink where they would demand public hearings, but at this point it looks more like a police investigation with what is effectively a paper report.

WHITFIELD: All right, Chris Plante, thanks very much, from the Pentagon.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com