Informed Comment Homepage

Thoughts on the Middle East, History and Religion

Header Right

  • Featured
  • US politics
  • Middle East
  • Environment
  • US Foreign Policy
  • Energy
  • Economy
  • Politics
  • About
  • Archives
  • Submissions

© 2025 Informed Comment

  • Skip to content
  • Skip to primary sidebar
Uncategorized

Cheney Halliburton And Iraq Purloined

Juan Cole 09/08/2004

Tweet
Share
Reddit
Email

Cheney, Halliburton and Iraq:

The Purloined Letter

Why was Dick Cheney so eager to invade Iraq? Why did he repeatedly link Saddam Hussein to al-Qaeda after September 11, and why did he maintain that not only did Iraq have weapons of mass destruction but that he, Cheney, knew exactly where they were?

Cheney clearly came into office wanting a war on Iraq, as revealed by former Treasury Secretary Paul O’Neil.

Cheney was the CEO of Halliburton in 1995-200. Halliburton is a corporation that does a number of things, including energy and oil and military contracting.

In 2001, Halliburton won a contract from the Department of Defence to provide “emergency services” to the Pentagon. The contract was above-board. Bids were taken from five competitors, and Halliburton won with the low bid. There was nothing illegal or irregular about such a process. But that contract may explain Cheney and his gang on Iraq.

In Edgar Allan Poe’s “The Purloined Letter,” the blackmail note that the police are looking for is in plain sight. It isn’t hidden, just among the ordinary correspondence on the desk. The police don’t bother to examine it for that reason.

It is the contract itself that is the scam. It is quite simple. A standing contract to provide “emergency services” to the Pentagon is a potential gold mine under exactly one circumstance. If a major war breaks out, the need for “emergency services” will inevitably be enormous. The contract was worth billions. But only if there was a war. If there was peace, the need for “emergency services” would be small. Halliburton was not doing that well. It needed the big bucks.

In 1998, when Cheney was CEO, Halliburton secretly changed its accounting techniques to show a higher level of profit. Without the change, it would have come in below expectations, which would have hurt its price. The change was unorthodox and “aggressive,” and should have been communicated to the stockholders, which only happened after a long and quite improper delay. Halliburton finally settled this case with the Securities Exchange Commission, by paying a paltry $7.5 million fine.

Part two of the scam is also in plain view. It is the very idea that “emergency services” should and could be supplied to the US military by a private company.

The fact is that civilian employees of private firms cannot be ordered into a war zone. Halliburton, and its subsidiary Kellog, Root and Brown, was to supply air-conditioned quonset huts to the US troops for summer, 2003. It did not do so. It could not do so. Once the guerrilla war broke out, it was impossible to get enough civilian workers out to the troop positions to build the quonset huts and put in airconditioning. As a result, US troops “looked like hobos and lived like pigs” in the words of one, with their shaving cream cans exploding in the 140 degrees heat.

If, on the other hand, US troops had been assigned to build the quonset huts and put in the airconditioning, that could easily have been accomplished.

So, the “emergency services contract” was a boondoggle only in the case of a war, but in case of a war, many of the services contracted for could not actually be supplied, at least in a timely manner.

Of course, other sorts of work could be done, including in the oil fields. The Iraq war has been worth billions of dollars to Halliburton. Additional Pentagon work was thrown its way once the war began, on the grounds that it was the only corporation with the necessary experience to undertake certain tasks. Halliburton subsidiary Kellog, Brown and Root has been accused of not being able to account for some charges it sent to the Pentagon, and of overcharging for some services it did provide.

And now Halliburton’s $13 bn. contract with the Pentagon is being rebid. There are not, however, very many companies that can do what Halliburton and its subsidiaries do, and which have a long association with the Pentagon and its various bureaucratic techniques, such that they know how to fit in with the Department of Defense bureaucracy.

What was in it for Cheney? I don’t think it was a matter of money. At least I hope it wasn’t. Cheney sold half his Halliburton stock options in 2000 for $5 million, and it is hard to imagine a man taking his country to war to increase the other half in value by a few million.

I suspect it is political. Not all corporations make money on war. Some actually lose money. But Halliburton, Bechtel and a few other components of the Military Industrial Complex do benefit from war. Strengthening that sector of the American economy strengthens the political Right. Turning the Republic into a praetorian state would permanently yield profits for the military industrial complex in such a way as to create a permanent Republican dominance of all the branches of the US government.

Filed Under: Uncategorized

About the Author

Juan Cole is the founder and chief editor of Informed Comment. He is Richard P. Mitchell Professor of History at the University of Michigan He is author of, among many other books, Muhammad: Prophet of Peace amid the Clash of Empires and The Rubaiyat of Omar Khayyam. Follow him on Twitter at @jricole or the Informed Comment Facebook Page

Primary Sidebar

Support Independent Journalism

Click here to donate via PayPal.

Personal checks should be made out to Juan Cole and sent to me at:

Juan Cole
P. O. Box 4218,
Ann Arbor, MI 48104-2548
USA
(Remember, make the checks out to “Juan Cole” or they can’t be cashed)

STAY INFORMED

Join our newsletter to have sharp analysis delivered to your inbox every day.
Warning! Social media will not reliably deliver Informed Comment to you. They are shadowbanning news sites, especially if "controversial."
To see new IC posts, please sign up for our email Newsletter.

Social Media

Bluesky | Instagram

Popular

  • Iran's Hypersonic Missiles Hit Israeli Refinery, Military Sites, as Israel does the same to Tehran
  • Iraqi Shiites Demand Expulsion of US Troops after Israel Attacks Iran
  • Why did Israel defy Trump – and risk a major War – by striking Iran now? And what happens next?
  • Israel's Netanyahu banks on TACO Trump as he Launches War on Iran to disrupt Negotiations
  • A Pariah State? Western Nations Sanction Israeli Cabinet Members

Gaza Yet Stands


Juan Cole's New Ebook at Amazon. Click Here to Buy
__________________________

Muhammad: Prophet of Peace amid the Clash of Empires



Click here to Buy Muhammad: Prophet of Peace amid the Clash of Empires.

The Rubaiyat of Omar Khayyam


Click here to Buy The Rubaiyat.
Sign up for our newsletter

Informed Comment © 2025 All Rights Reserved