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News Link • Contractors, Government & Military

U.S. files civil suit against defense contractor KBR

• Walter Pincus, Washington Post

The Justice Department on Thursday filed a civil suit against defense contractor Kellogg Brown & Root Inc., alleging that the firm provided false statements in charging the government for the unauthorized use of private security guards in Iraq.

In the suit, Justice said KBR, a former subsidiary of Halliburton Co., was not permitted to charge the Army for security services under the terms of its contract but repeatedly did so anyway.

From 2003 to 2006, the firm awarded subcontracts to three private companies -- to provide armed security details for KBR executives -- and awarded additional subcontracts to more than 30 other companies that employed their own private security, the suit alleges. It also states that one subcontractor "routinely" hired armed guards "to shuttle managers, personnel and payroll around Iraq" rather than traveling in military convoys.
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