Page 20
December 2005
The AC Phoenix
There’s no question that post-hurricane relief and reconstruction in
New Orleans and the Gulf Coast are going to pose many genuinely dif
ficult challenges.
But some things seem pretty simple.
For example, it’s a dumb idea to have cruise ships house evacuees
and then pay the cruise lines at four times what they would charge vaca
tioners. As it happens, however, that’s exactly what the Federal
Emergency Management Agency (FEMA) is doing. An investigation by
Senators Tom Coburn (R-OK) and Barack Obama (D-IL), found that what
should have been a short-term FEMA emergency deal is turning into a
six-month boondoggle. FEMA has contracted with Carnival Cruise
Lines, to the tune of $192 million, to house hurricane evacuees on three
cruise ships.
The result, according to the senators: “Taxpayers are paying, per
evacuee, four times the amount a vacation cruise passenger would have
to pay. Three Carnival ships are only half-full and mostly occupied by
relief workers. Carnival’s overhead costs in the FEMA operation are far
lower than during normal cruises. The Carnival ships are docked. No
fuel is being used and no entertainment is being provided to the relief
workers. Yet, taxpayers are paying $2,550 per guest per week, which is
four times the cost of a $599 per person, 7-Day Western Caribbean
Cruise from Galveston, Texas.
Another thing that seems straightforward: The government should
not be contracting with companies that have made a habit of ripping it
off, or engaging in illegal and irresponsible activities. That happens to
be the existing U.S. law, which stipulates that the government should
contract only with “responsible prospective contractors.” There are
many companies that one might reasonable argue fail this test, but it
would be hard to identify a corporation that fails it more miserable than
Halliburton
Noting this, 19 members of the Congressional Progressive Caucus
recently wrote to President George Bush, urging that Halliburton be
“suspended from any hurricane damage assessment and reconstruction
contracts until the many ongoing investigations into the company are
completed.”
The abridged version of Halliburton’s wrongdoing cited in the
Progressive Caucus letter includes:
?Bribery. Halliburton has admitted that its KBR subsidiary “may”
have bribed the government of Nigeria for the purpose of winning a
multi-billion-dollar construction contract.
?Bid-rigging on foreign projects. The Justice Department has initiat
ed a criminal inquiry into Halliburton for bid-rigging in connection with
the company’s work on foreign construction projects.
?An epidemic of fraud and waste in Iraq. The company has alleged
ly charged taxpayers $45 for a pack of soda. The inspector general for
the U.S. Coalition Provisional Authority found Halliburton charged the
government $2.85 million for hotel costs in Kuwait, even though
cheaper housing arrangements were available. A defense audit agency
says the company overcharged for fuel by more than $200 million, and
jacked up the price of meals served to troops.
The Progressive Caucus call was hailed by our colleagues at the
Center for Corporate Policy and Halliburton Watch. “The feeding frenzy
of contracts being handed out to well-connected cronies and crooks
threatens to add taxpayers to the list of those victimized by the admin
istration’s disastrous response to Katrina, just like we saw in Iraq,” says
Charlie Cray, director of the Center for Corporate Policy. He warns of the
dangers of “a flood of fraud in the future.”
While federal rules are designed to ensure the government contracts
with firms that will do the work they are supposed to do honestly and in
accord with labor, environmental and other relevant standards, the idea
of suspending of debarring bad actor companies from getting their
hands in the government still has some other, not-so-trivial benefits.
The U.S. government spends more than $250 billion a year on goods
and services. It is the largest consumer in the world. In many industries
and for many companies, it is a crucial customer—if they can’t get gov
ernment business, they will feel real pain. Thus, even occasional appli
cation of the contractor responsibility standard against Fortune 500
companies would have a major deterrent effect on corporate crime and
abuse.
Of course, Halliburton is not just another company, and so the odds
of the Bush administration taking up the Progressive Caucus recom
mendation are not great.
On the other hand, who would have imagined Pres. Bush as he
recently ordered federal agencies to “conserve natural gas, electricity,
gasoline, and diesel fuel to the maximum extent consistent with the
effective discharge of public responsibilities?”
Hurricane Katrina has stirred things up in Washington, as well as the
Gulf Coast. Opportunities are opening, not just for the profiteers who
hope to capitalize on the misery inflicted by Katrina and Rita, but also for
advocates of social and environmental justice, as well as for a modicum
of corporate accountability.
For a full dossier of Halliburton wrongdoing, and text of the
Progressive Caucus letter, visit www.halliburtonwatch.ord.
(Russell Mokhiber and Robert Weissman are co-authors of “On the
Rampage: Corporate Predators and the Destruction of Democracy.”
Visit their web-site at www.corporatepredators.com.)
Emmanuel Apostolic Churcli Holiday Greetings From
Pastor Michael Butler Sr., And The
Emmanuel Apostohc Church Family
You are welcome to attend our watch night celebration:
Saturday December 31st,
At 9:30 p.m. Speaker: Pastor Eunice Woods
A ministry Determined to build lives, and to live for Christ
Sunday 9:45 A.M. Christian Education
11:00 A.M. Worship Celebration
Service
Monday 6:30 RM.
Wednesday 6:30 P.M.
7:00 P.M.
1925-A Vargrave St.
Winston-Salem, NC 27127 - (336)724-6207
Website: Emmanuelapostoliccocig.org
Prayer
Prayer
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