Color Me Shocked


WASHINGTON (Reuters) – Military auditors still have “major” unresolved issues with Halliburton, the Pentagon said on Tuesday, a day after Democratic congressmen released an audit questioning $108 million in costs by the contractor.

A Pentagon spokeswoman said the audit, which found $108 million in questionable fuel delivery costs in Iraq by Halliburton unit Kellogg Brown and Root, was conducted to determine whether “fair and reasonable” prices were charged.

“The majority of costs questioned in this audit report are because DCAA (Defense Contract Audit Agency) auditors believe that KBR paid an unreasonable price for the fuel,” the spokeswoman said.

…Democratic Rep. Henry Waxman of California, one of the congressmen who released the audit, said in a statement on Tuesday that Bush administration officials heavily edited a copy of the audit at Halliburton’s request before it was sent to U.N.-mandated auditors overseeing the Development Fund for Iraq.