Wednesday, March 16, 2005

Taking Premium Fees to New Extremes

Greed is all right, by the way … I think greed is healthy. You can be greedy and still feel good about yourself.
Ivan F. Boesky, financier

Unless you are okay with the following, you need to send an e-mail to your representatives in the House and Senate. It is rather easy. Go to Google, write in the name of your congress man or woman and go to his or her site and leave a message. I have done it numerous times.

The latest favoritism to resurface from the Bush administration is Halliburton, again. The Pentagon's audit of Halliburton views their charges as illogical. The auditors said Dick Cheney’s old company might have overcharged the government by more than $100 million on a contract to deliver fuel to Iraq.

According to the Los Angeles Times, the Pentagon's Defense Contract Audit Agency said Halliburton had charged $27.5 million to deliver $82,100 worth of liquefied petroleum gas. The DCAA called the price "illogical." Halliburton’s defense is that it was in a war zone.

Okay, a high premium is understandable, but not to the tune of $27.4 million! The good news is that this kind of mark up may encourage numerous new competitors.

Oh, I forgot, this was a non-competitive bid. In other words, it was handed to Halliburton and they could charge whatever they wanted. Obviously they did.

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