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Monday, March 05, 2007

Halliburton could lose $400 million

Military contracting giant KBR Inc. could be docked up to $400 million for improperly using private security companies in Iraq, the company disclosed this week.

The Army has already said it withheld about $20 million in payments to KBR's parent company, Halliburton, because the company's subcontractors used private security contractors, including North Carolina-based Blackwater USA. Army officials have said that private security companies were not allowed under Halliburton's main contract in Iraq and that the military was to provide security.

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