Vice President Dick Cheney has gone to great lengths to claim that
there are very few connections between Halliburton and the U.S. government.
He has also claimed that scrutiny of Halliburton only comes from political
opponents who are "desperate." In each of his claims, the facts tell a very
different story.
Government Contracts
"The government had absolutely nothing to do with [my economic success at
Halliburton]." - Dick Cheney, 10/5/00
FACT: "Cheney's comment left out how closely Dallas-based Halliburton's
fortunes are linked to the U.S. government. The world's largest oil
services firm is a leading U.S. defense contractor and has benefited from
financial guarantees granted by U.S. agencies. During Cheney's five years
as chairman and chief executive, Halliburton was identified as a potential
participant in 10 loans or loan guarantees valued at a total of $1.8
billion awarded by the U.S. government. Additionally, during Cheney's
tenure, the U.S. Defense Department granted Halliburton contracts valued at
about $1.8 billion, according to department records." In 1999 alone, "the
Pentagon ranked Halliburton the No. 17 recipient of ''prime contract
awards'' with $657.5 million." - Bloomberg News, 10/6/00
"I wouldn't know how to manipulate the [government contract] process if I
wanted to." - Dick Cheney, 1/22/04
FACT: "A report by the Washington-based Center for Public Integrity
suggested that Halliburton essentially cashed in - doubling the value of
its government contracts - on Cheney. The company took in revenue of $ 2.3
billion on government contracts," which was "up $1.2 billion from the
five-year period before he arrived." - LA Times, 10/19/00; Chicago Tribune,
8/10/00; AFP, 12/14/03
Charges Against Halliburton
"Cheney said, 'Halliburton gets unfairly maligned simply because of their
past association with me.' He said allegations of corruption stem from
'desperate' political opponents who 'can't find any legitimate policy
differences to debate. He said critics haven't produced any evidence to
support their claim, which he said is unfounded." - Dow Jones, 1/22/04
FACT: Halliburton itself has acknowledged that it "accepted up to $6
million in kickbacks" in its no-bid contract work in Iraq. Additionally, it
is the Bush Administration - not "political opponents" that is looking into
allegations that the company overcharged the government by $61 million.
And it is the Bush Administration that "repeatedly warned the company that
the food it was serving the 110,000 U.S. troops in Iraq was 'dirty'" with
an audit finding "blood all over the floor" of its kitchens, "dirty pans,"
and "rotting meats ... and vegetables." - Boston Globe, 1/23/04; CBS,
12/12/03;
Cheney's Continued Links to Halliburton
Vice President Dick Cheney continues to say that he has no ties to
Halliburton since joining the GOP ticket in 2000. He also promised to clear
himself from any conflict of interest should he become Vice President. In
each of his claims, the facts tell a very different story.
"But what I'll have to do, assuming we're successful [in the election], is
divest myself, that is, sell any remaining shares that I have in the
company." Dick Cheney, 7/30/00
FACT: A congressional report found that Cheney still owns "more than
433,000 Halliburton stock options," including "100,000 shares at $54.50 per
share, 33,333 shares at $28.125 and 300,000 shares at $39.50 per share."
CNN, 9/25/03
"I severed my ties with Halliburton when I became a candidate for Vice
President in August of 2000." - Dick Cheney, 1/22/04
FACT: Along with the 433,000 stock options, "Cheney still receives about
$150,000 a year" from Halliburton. - CNN, 10/25/03
"What happens financially [by joining the GOP ticket], obviously, is I take
a bath, in one sense." - Dick Cheney, 7/25/00
FACT: Halliburton "has agreed to let Mr. Cheney, the Republican
vice-presidential candidate, retire with a package worth an estimated $20
million, according to people who have reviewed the deal." - NY Times,
8/12/00
Conflict of Interest
"I'll do whatever I have to do to, Sam, to avoid a conflict of
interest. I will eliminate the conflict. I can assure you, I've said
repeatedly, I will not tolerate or be party to a conflict of interests
while I'm vice president. I'll do whatever I have to do to resolve that
conflict." - Dick Cheney, 8/27/00
FACT: A congressional report found that "the more than 433,000 stock
options he possesses 'is considered among the 'ties' retained in or
'linkages to former employers' that may 'represent a continuing financial
interest' in those employers which makes them potential conflicts of
interest." - CNN, 9/25/03
Cheney's Tenure at Halliburton
Vice President Dick Cheney has told many stories about his time at
Halliburton. And even as criticism mounts over Halliburton's treatment of
U.S. troops and taxpayers, he continues to say he is proud of the company.
"I had a firm policy that I wouldn't do anything in Iraq even arrangements
that were supposedly legal. We've not done any business in Iraq since the
sanctions were imposed and I had a standing policy that I wouldn't do
that." - Dick Cheney, 8/27/00
FACT: "According to oil industry executives and confidential United Nations
records, however, Halliburton held stakes in two firms that signed
contracts to sell more than $73 million in oil production equipment and
spare parts to Iraq while Cheney was chairman and chief executive officer
of the Dallas-based company. Two former senior executives of the
Halliburton subsidiaries say that, as far as they knew, there was no policy
against doing business with Iraq. One of the executives also says that
although he never spoke directly to Cheney about the Iraqi contracts, he is
certain Cheney knew about them. The Halliburton subsidiaries joined dozens
of American and foreign oil supply companies that helped Iraq increase its
crude exports from $4 billion in 1997 to nearly $18 billion in 2000. Since
the program began, Iraq has exported oil worth more than $40 billion." -
WP, 6/23/01
Halliburton's Reputation
"Halliburton is a fine company, and I'm pleased that I was associated with
the company." - Dick Cheney, 8/7/02
FACT: Halliburton has acknowledged that it "accepted up to $6 million in
kickbacks" in its contract work in Iraq. It is also under scrutiny over
allegations of overcharging the government by $61 million in Iraq - a
practice the company was previously fined $2 million for.
The company also potentially faces criminal charges in a $180 million
international bribery scandal during the time Cheney was CEO of the company.
The Pentagon has also " repeatedly warned the company that the food it was
serving the 110,000 U.S. troops in Iraq was 'dirty'" with an audit finding
"blood all over the floor" of its kitchens, "dirty pans, dirty grills,
dirty salad bars and rotting meatsŠand vegetables."
Cheney's Latest Distortions
In January 2004, Vice President Dick Cheney did a round of media interviews
with NPR and others in which he reinforced his claims of a connection
between Saddam Hussein and Al Qaeda. To back these claims up, he cited
documents already discredited as "inaccurate" by the Bush Administration.
SADDAM-AL QAEDA CONNECTION
CHENEY CLAIM: "There's overwhelming evidence there was a connection between
al Qaeda and the Iraqi government. I am very confident that there was an
established relationship there." - Vice President Cheney, 1/22/04
FACT: According to documents, "Saddam Hussein warned his Iraqi supporters
to be wary of joining forces with foreign Arab fighters entering Iraq to
battle U.S. troops. The document provides another piece of evidence
challenging the Bush administration contention of close cooperation between
Saddam's regime and al Qaeda terrorists." [NY Times, 1/15/04]
FACT: "CIA interrogators have already elicited from the top Qaeda officials
in custody that, before the American-led invasion, Osama bin Laden had
rejected entreaties from some of his lieutenants to work jointly with
Saddam." [NY Times, 1/15/04]
FACT: "Sec. of State Colin Powell conceded Thursday that despite his
assertions to the United Nations last year, he had no 'smoking gun' proof
of a link between the government of Iraqi President Saddam Hussein and
terrorists of al-Qaeda.'I have not seen smoking-gun, concrete evidence
about the connection,' Powell said." [NY Times, 1/9/04]
FACT: "Three former Bush Administration officials who worked on
intelligence and national security issues said the prewar evidence tying Al
Qaeda was tenuous, exaggerated and often at odds with the conclusions of
key intelligence agencies." [National Journal, 8/9/03]
FACT: Declassified documents "undercut Bush administration claims before
the war that Hussein had links to Al Qaeda." [LA Times, 7/19/03].
FACT: "The chairman of the monitoring group appointed by the United Nations
Security Council to track Al Qaeda told reporters that his team had found
no evidence linking Al Qaeda to Saddam Hussein." [NY Times, 6/27/03]
FACT: "U.S. allies have found no links between Iraq and Al Qaeda.'We have
found no evidence of links between Iraq and Al Qaeda,' said Europe's top
investigator. 'If there were such links, we would have found them. But we
have found no serious connections whatsoever.'" [LA Times, 11/4/02]
YASIM ALLEGATION
CHENEY CLAIM: "Abdul Rahman Yasim arrived back in Iraq and was put on the
payroll and provided a house, safe harbor and sanctuary. So Saddam Hussein
had an established track record of providing safe harbor and sanctuary for
terrorists." - Vice President Cheney, 1/22/04
FACT: "Even if the new information holds up - and intelligence and law
enforcement officials disagree on its conclusiveness - the links tying
Yasin, Saddam and al-Qaeda are tentative." [USA Today, 9/17/03]
SUPPORTING EVIDENCE
CHENEY CLAIM: "You ought to go look at an article that Stephen Hayes did in
the Weekly Standard here a few weeks ago, that goes through and lays out in
some detail, based on an assessment that was done by the Department of
Defense and forwarded to the Senate Intelligence Committee some weeks ago.
That's your best source of information" to justify the Saddam-Al Qaeda
claim. - Vice President Cheney, 1/9/04
FACT: "Reports that the Defense Department recently confirmed new
information with respect to contacts between al Qaeda and Iraq in a letter
to the Senate Intelligence Committee are inaccurate. Individuals who leak
or purport to leak classified information are doing serious harm to
national security; such activity is deplorable and may be illegal." [DoD,
11/15/03]
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