New row over Halliburton role in Iraq

3.45pm - By ANDREW BUNCOMBE and RUPERT CORNWELL

WASHINGTON - A subsidiary of Vice-President Dick Cheney's former company, Halliburton, has been given a far wider and more lucrative role in rebuilding Iraq than was previously declared.

Congressman Henry Waxman said on Wednesday that correspondence with the US Army Corps of Engineers showed that a multi-million dollar contract included a role not only to put out oil well fires but for the "operation of facilities and distribution of products". The contract was awarded without any tendering by other firms.

"Only now, over five weeks after the contract was first disclosed, are members of Congress and the public learning that Halliburton may be asked to pump and distribute Iraqi oil under the contract," said Mr Waxman, a Democrat from California.

The awarding of the contract in March to the Halliburton subsidiary, Kellogg Brown and Root, prompted some lawmakers to question whether the administration's deep ties with Halliburton helped secure the deal. This was something the White House has adamantly denied, claiming that the oil in Iraq was being protected and held for the Iraqi people.

But the exchange of letters with the Army's engineers - currently responsible for maintaining security at Iraq's oilfields - has now triggered more allegations that Mr Cheney's former role as chairman of Halliburton was an important factor in the awarding of the contract.

In a letter to Mr Waxman dated earlier this week, Lieutenant General Robert Flowers, the US Army Chief of Engineers, gave further details about what the contract entails. He said the company would put out oil well fires and assess the facilities, clean up oil spills or other environmental dangers at the sites, repair or reconstruct damaged infrastructure and operate facilities and distribute products. He did not elaborate on what he meant by "operation of facilities and distribution of products".

Yesterday Halliburton said the company's initial announcement of the contract disclosed the larger role for its KBR subsidiary. This, however, appeared to be a matter of opinion: that announcement in March merely said that once the oil well fires were put out, KBR would "provide for the continuity of operations of the Iraqi oil infrastructure".

Meanwhile Mr Cheney yesterday said he had agreed to run on the Republican ticket with President Bush next year, insisting that his past health problems were no obstacle. "The president has asked me if I would serve again as his running mate. I've agreed to do that," Mr Cheney, one of the most powerful Vice-Presidents in modern times, told The Dallas Morning News.

Though Mr Bush has not formally announced he will run again, it is a foregone conclusion that he will. But there had been doubts that Mr Cheney, 62, who suffered four heart attacks before taking office, would accompany him.

Mr Cheney, however, insisted yesterday his health was fine. "I've got a doc with me 24 hours a day who watches me very carefully," he said. "If I ran into problems where I felt I couldn't serve, I'd be the first to say so and step down."

- INDEPENDENT

Herald Feature: Iraq