washington (reuters) – many of the u.s. firms doing billions of dollars of work in iraq (news – web sites) and afghanistan (news – web sites) have been big donors to president bush (news – web sites) and his republican party and fill their boards with political and military heavyweights, a report on thursday said.
the report by the watchdog group, the center for public integrity, said most of the 70 firms and individuals getting up to $8 billion in contracts for post-war iraq and afghanistan donated more to bush’s presidential campaign — a little over $500,000 — than any other candidate in the past decade.
“”there is a stench of political favoritism and cronyism surrounding the contracting process in both iraq and afghanistan,”” said charles lewis, executive director of the group, which investigates public service and ethics issues.
the report found that 14 of the 70 contractors got work both in iraq and afghanistan and that combined these companies gave nearly $23 million in political contributions and 13 of those firms employed former government officials with close ties to agencies and departments.
government defends contracting
one of the biggest contracts for iraq went to halliburton co., the oil services firm once run by vice president dick cheney (news – web sites), who strongly denies any cronyism.
engineering firm bechtel, which has more than $1 billion in u.s. government business in iraq, has former secretary of state george shultz as a member of its board.
the main government departments giving out work in iraq, the u.s. army corps of engineers and the u.s. agency for international development, strongly deny favoritism.
usaid spokeswoman ellen yount defended the contracting process at her agency as fair and transparent and said most decisions were made by non-political career officers. “”we have made sure that it is not politically motivated,”” she told reuters.
the contracting process in iraq has come under strong scrutiny and criticism, especially from democratic lawmakers who say halliburton, in particular, is getting too much business from the war. halliburton subsidiary kellogg brown & root has clocked up more than $3.5 billion in business in iraq, according to figures given to reuters by the army corps of engineers, with $1.6 billion under a no-competition oil sector repair contract in march and the remainder via another contract given to the company to provide logistical support to u.s. troops. two new contracts to replace the march one were set to have been announced this month, but the army corps of engineers has delayed those until the end of the year and doubled the total contract amounts to $2 billion.
the general accounting office (news – web sites), the investigative arm of congress, is doing a broad investigation into the process used to award contracts to rebuild iraq and is expected to release a preliminary report in the next few months.