During former defense secretary Richard Cheney's five-year tenure as chief executive of Halliburton, Inc., his oil services firm raked in big bucks from dubious commercial dealings with Iraq. Cheney left Halliburton with a $34 million retirement package last July when he became the GOP's vice-presidential candidate. Of course, U.S. firms aren't generally supposed to do business with Saddam Hussein. But thanks to legal loopholes large enough to steer an oil tanker through, Halliburton profited big-time from deals with the Iraqi dictatorship. Conducted discreetly through several Halliburton subsidiaries in Europe, these greasy transactions helped Saddam Hussein retain his grip on power while lining the pockets of Cheney and company.
According to the Financial Times of London, between September 1998 and last winter, Cheney, as CEO of Halliburton, oversaw $23.8 million of business contracts for the sale of oil-industry equipment and services to Iraq through two of its subsidiaries, Dresser Rand and Ingersoll-Dresser Pump, which helped rebuild Iraq's war-damaged petroleum-production infrastructure. The combined value of these contracts exceeded those of any other U.S. company doing business with Baghdad.
Halliburton was among more than a dozen American firms that supplied Iraq's petroleum industry with spare parts and retooled its oil rigs when U.N. sanctions were eased in 1998. Cheney's company utilized subsidiaries in France, Italy, Germany, and Austria so as not to draw undue attention to controversial business arrangements that might embarrass Washington and jeopardize lucrative ties to Iraq, which will pump $24 billion of petrol under the U.N.-administered oil-for-food program this year. Assisted by Halliburton, Hussein's government will earn another $1 billion by illegally exporting oil through black-market channels.
With Cheney at the helm since 1995, Halliburton quickly grew into America's number-one oil-services company, the fifth-largest military contractor, and the biggest nonunion employer in the nation. Although Cheney claimed that the U.S. government "had absolutely nothing to do" with his firm's meteoric financial success, State Department documents obtained by the Los Angeles Times indicate that U.S. officials helped Halliburton secure major contracts in Asia and Africa. Halliburton now does business in 130 countries and employs more than 100,000 workers worldwide. Truth be told, trading with the enemy is a time-honored American corporate practice or perhaps "malpractice" would be a more appropriate description of big-business ties to repressive regimes.
Given that Saddam Hussein, the pariah du jour, has often been compared to Hitler, it's worth pointing out that several blue-chip U.S. firms profited from extensive commercial dealings with Nazi Germany.
Shockingly, some American companies =96 including Standard Oil, Ford, ITT, GM, and General Electric secretly kept trading with the Nazi enemy while American soldiers fought and died during World War II.
Today General Electric is among the companies that are back in business with Saddam Hussein, even as American jets and battleships attack Iraq on a weekly basis using weapons made by G.E. But the United Nations sanctions committee, dominated by U.S. officials, has routinely blocked medicines and other essential items from being delivered to Iraq through the oil-for-food program, claiming they have a potential military "dual use." These sanctions have taken a terrible toll on ordinary Iraqis, and on children in particular, while the likes of Halliburton and G.E. continue to lubricate their coffers.
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