Posted on: Wednesday, August 18, 2004

Army gives Halliburtontime to prove costs

Associated Press

HOUSTON — The U.S. Army did another about-face yesterday and said it was giving Halliburton Co. more time to justify its bills to the government before withholding 15 percent of its payments on future invoices for logistical support of troops in Iraq and Kuwait.

Spokeswomen for the Army Materiel Command said in published reports that a decision on whether to withhold money from Halliburton was on hold.

Linda Theis, a spokeswoman for the Army Materiel Command, said the military would have a decision within a week.

Halliburton had said Monday that the Army Materiel Command had given the company more time to explain and account for its costs before implementing a clause in a contract allowing withholding of payments.

But a day later, the Houston-based company said it had learned the Army Materiel Command had refused to grant a third extension before implementing the clause, which allows the government to withhold 15 percent of payments until contractors prove their costs.

A Halliburton spokeswoman did not answer requests for later comment, and Pentagon officials did not return calls yesterday.

Halliburton has been awarded more than $6 billion in contracts related to the U.S.-led invasion of Iraq.