Return to Transcripts main page

CNN Saturday Morning News

New Halliburton Controversy on Iraq Contracts

Aired December 13, 2003 - 09:05   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: President Bush is at Camp David this weekend, as we mentioned. Before leaving, he signed a bill into law permitting sanctions against Syria. The president has also weighed in on the brewing controversy involving Vice President Dick Cheney's old firm, Halliburton.
CNN White House correspondent Suzanne Malveaux joining us now with the very latest on that. Good morning to you, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Heidi.

President Bush has been drawn into this Halliburton controversy. As you know, Vice President Dick Cheney used to be the CEO of that company before going on to the administration.

And really, Democratic presidential hopefuls are using this story to illustrate and say, Look, this is just another example of the administration putting big business and special interests over the interests of the American people. They say this is a contract, the Halliburton subsidiary that was won without competitive bidding process, that this is just not fair.

Now, from the very beginning, the president, the vice president have said that they are not guilty of any type of wrongdoing. And President Bush yesterday, what was significant, is that he went one step further to distance himself as well as the administration from this controversy from Halliburton by saying he was going to get to the bottom of it.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: They felt like there was an overcharge issue. They put the issue right out there on the table for everybody to see. They're doing good work. We're going to watch, we're going to make sure that as we spend the money in Iraq that it's spent well, it's spent wisely. And their investigation will lay the facts out for everybody to see. And if there's an overcharge, like we think there is, we expect that money to be repaid.

(END VIDEO CLIP)

MALVEAUX: So the president using strong words and distancing himself as well as the administration from this controversy, saying that if there is any discrepancy with the payment, that Halliburton will pay, if there's any type of overpayment here. Now, Democratic aides who I spoke with behind the scenes say that they don't think that this is really going to stick to the White House, that this is much far removed. And really, what they believe is going to happen is that at the very least it will push -- put some pressure on the White House to make this bidding process for contracts more open, more transparent.

This is something that White House officials say that they are committed to doing.

And as you know, Heidi, this comes at a very politically sensitive time. This is when former secretary of state James Baker on Monday is going to be traveling to France, Germany, as well as Russia, Italy, and the United Kingdom. He's going to be approaching leaders, asking for them to forgive Iraqi debt.

Some of those countries, as you know, were kept out of lucrative contracts for Iraq in the tune of $18 billion, Heidi.

COLLINS: Suzanne, now, how does this trap look now for James Baker? Are things going to be a little bit more complicated for him?

MALVEAUX: I'm sorry, I'm hearing someone else, Heidi. Did you ask a question?

COLLINS: I did. I was just wondering if you thought that this trip for James Baker starting on Monday is going to be a little bit more complicated now with these latest developments.

MALVEAUX: Well, you ask people at the State Department, and quite frankly, they say, We are glad this is James Baker's trip, because this only, the timing of this could not be worse.

This is something that White House aides, despite the fact that they had told leaders from the very beginning, France, Germany, Russia, and others, that they were not going to get at least these prime contracts, it was quite surprising, the outrage, the reaction from those leaders when this came out just a few days ago.

But he does take a carrot, and that is the potential that if they go ahead and forgive some of the Iraqi debt, if they contribute, perhaps they'll get on the list, perhaps they'll get those prime contracts. But it's not going to be an easy sell, Heidi.

COLLINS: All right. Suzanne Malveaux, thanks so very much for the very latest on all of that.

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 December 13, 2003 - 09:05   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: President Bush is at Camp David this weekend, as we mentioned. Before leaving, he signed a bill into law permitting sanctions against Syria. The president has also weighed in on the brewing controversy involving Vice President Dick Cheney's old firm, Halliburton.
CNN White House correspondent Suzanne Malveaux joining us now with the very latest on that. Good morning to you, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Heidi.

President Bush has been drawn into this Halliburton controversy. As you know, Vice President Dick Cheney used to be the CEO of that company before going on to the administration.

And really, Democratic presidential hopefuls are using this story to illustrate and say, Look, this is just another example of the administration putting big business and special interests over the interests of the American people. They say this is a contract, the Halliburton subsidiary that was won without competitive bidding process, that this is just not fair.

Now, from the very beginning, the president, the vice president have said that they are not guilty of any type of wrongdoing. And President Bush yesterday, what was significant, is that he went one step further to distance himself as well as the administration from this controversy from Halliburton by saying he was going to get to the bottom of it.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: They felt like there was an overcharge issue. They put the issue right out there on the table for everybody to see. They're doing good work. We're going to watch, we're going to make sure that as we spend the money in Iraq that it's spent well, it's spent wisely. And their investigation will lay the facts out for everybody to see. And if there's an overcharge, like we think there is, we expect that money to be repaid.

(END VIDEO CLIP)

MALVEAUX: So the president using strong words and distancing himself as well as the administration from this controversy, saying that if there is any discrepancy with the payment, that Halliburton will pay, if there's any type of overpayment here. Now, Democratic aides who I spoke with behind the scenes say that they don't think that this is really going to stick to the White House, that this is much far removed. And really, what they believe is going to happen is that at the very least it will push -- put some pressure on the White House to make this bidding process for contracts more open, more transparent.

This is something that White House officials say that they are committed to doing.

And as you know, Heidi, this comes at a very politically sensitive time. This is when former secretary of state James Baker on Monday is going to be traveling to France, Germany, as well as Russia, Italy, and the United Kingdom. He's going to be approaching leaders, asking for them to forgive Iraqi debt.

Some of those countries, as you know, were kept out of lucrative contracts for Iraq in the tune of $18 billion, Heidi.

COLLINS: Suzanne, now, how does this trap look now for James Baker? Are things going to be a little bit more complicated for him?

MALVEAUX: I'm sorry, I'm hearing someone else, Heidi. Did you ask a question?

COLLINS: I did. I was just wondering if you thought that this trip for James Baker starting on Monday is going to be a little bit more complicated now with these latest developments.

MALVEAUX: Well, you ask people at the State Department, and quite frankly, they say, We are glad this is James Baker's trip, because this only, the timing of this could not be worse.

This is something that White House aides, despite the fact that they had told leaders from the very beginning, France, Germany, Russia, and others, that they were not going to get at least these prime contracts, it was quite surprising, the outrage, the reaction from those leaders when this came out just a few days ago.

But he does take a carrot, and that is the potential that if they go ahead and forgive some of the Iraqi debt, if they contribute, perhaps they'll get on the list, perhaps they'll get those prime contracts. But it's not going to be an easy sell, Heidi.

COLLINS: All right. Suzanne Malveaux, thanks so very much for the very latest on all of that.

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