Richard Bruce Cheney
He was CEO of Halliburton while it sold millions in oil equipment to Iraq under the
the notoriously corrupt U.N. Oil for Food Program. As Vice President, he kept his
Halliburton stock and a $150,000 company salary, while Halliburton and its
subsidiaries have won $16 billion in contracts in Iraq. Cheney also headed the
Energy task force, meeting in secret with oil services companies like Halliburton,
as well as the oil industry’s top advocacy group, and Enron. The ensuing report
recommended the same energy policies that were suggested by the industry groups,
sometimes in the exact same words.
Meanwhile, Halliburton has been at the
center of scores of corruption investigations – most recently, Halliburton
subsidiary KBR supplied U.S. troops with contaminated water that made them sick.
Today Cheney is one of the most influential figures in the White House – a
shrewd powerbroker with an office near the House floor in addition to his office in
the West Wing and his Senate offices. He has affected policies that subsidize the
oil industry and was a driving force behind President George W. Bush’s decision to invade Iraq.
When President Bush underwent a colonoscopy in 2002, Cheney became only the
second man in history to serve as acting president. And in 2003, an executive order
gave him the power to classify documents.
Cheney’s political career began in
1969, under President Richard Nixon, where in a span of five years he served in
several roles including Deputy Assistant to the President. Under President Gerald
Ford, he joined forces with Donald Rumsfeld to persuade Ford to fire Defense
Secretary James Schlesinger. He was rewarded by becoming Ford’s chief of staff, the
youngest in history.
As a Congressman (R-Wyoming), he served five terms
until 1989 in such influential positions as chairman of the Republican Policy
Committee and House Minority Whip. It was during this time that Cheney’s unabashed
advocacy of private sector energy interests first emerged. He became a vigorous
proponent of Wyoming’s petroleum and coal businesses, and a federal building in its
regional center of the oil and coal business, Casper, was even named the “Dick
Cheney Federal Building.”
He served as Secretary of Defense until 1993 under
President George H.W. Bush, directing the
U.S.http://en.wikipedia.org/wiki/United_States_invasion_of_Panama invasion of Panama
and Operation Desert Storm. In 1993, he left the Department of Defense and joined
the American Enterprise Institute, a conservative think tank that is one of the
architects of the current Bush administration’s public policy. More than two dozen
alumni have served in the administration, and its board of trustees includes Lee
Raymond, ex-CEO of ExxonMobil.
From 1995 until 2000, Cheney served as board
chairman and CEO of Halliburton, the nation’s largest oilfield services company.
During Cheney’s tenure, the number of Halliburton subsidiaries in offshore tax
havens increased from nine to 44. He lobbied to lift U.S. sanctions against Iran and
Libya. When that didn’t work, Halliburton did business with Iran anyway. In 2000,
Halliburton opened a Cayman Islands subsidiary for the sole purpose of circumventing
U.S. sanctions against Iran. In 2004, the Justice Department opened an investigation
into Halliburton’s Iran contracts, worth $30 million to $40 million a
year.
As a vice-presidential candidate, Cheney claimed that Halliburton under
his leadership did not do business with Iraq, also the subject of U.S. sanctions.
But, in fact, two Halliburton subsidiaries, Dresser-Rand and Ingersoll Dresser Pump
Co., sold Iraq $73 million in supplies for its oil industry under the auspices of
the corrupt U.N. Oil for Food Program. The supplies provided by Halliburton
increased Iraq’s oil production, which dictator Saddam Hussein used to buy weapons
and to build palaces.
Cheney also sat on the Board of Directors of Procter
& Gamble, Union Pacific and Electronic Data Systems, and while still CEO of
Halliburton in 2000, he headed George W. Bush's Vice-Presidential search committee.
After reviewing Cheney’s findings, Bush asked Cheney to be his running mate. Though
Cheney resigned from Halliburton in 2000, putting all his corporate shares into a
blind trust, his net worth (between $30 million and $100 million), is still largely
derived from his time there. Since Cheney became vice president, Halliburton has won
$16 billion in no-bid contracts in Iraq.. Meanwhile, government auditors have issued
at least nine reports criticizing Halliburton’s Iraq work, and it is the subject of
multiple criminal investigations into overcharging, kickbacks and fraud. The Justice
Department is also investigating charges that Halliburton has inflated its fees for
services it performs in Iraq. The Pentagon’s Inspector General found in March 2008
that KBR supplied contaminated water to U.S. troops in Iraq for two years. Scores of
soldiers became sick from their exposure to the water, which was chlorinated
wastewater.
In 2005, Cheney and his wife Lynne reported a gross income of
$8.82 million, largely the result of exercising Halliburton stock options that had
been set aside with the trust in 2001.
Halliburton is not the only company
flourishing thanks to Cheney’s role in the Bush Administration. More than 20 oil
industry companies met with Cheney while he directed the National Energy Policy
Development Group (NEPDG), known as the Energy task force, which issued its report
in the summer of 2001. Cheney fought for years to keep the deliberations of the task
force a secret, but in July 2003 the Supreme Court ruled the Department of Commerce
must make the NEPDG's documents public. Those documents included maps of Iraq’s oil
fields, pipelines and refineries, and a chapter, titled “Strengthening Global
Alliances,” that urged military action.
One of the energy groups that met
with Cheney’s task force was Constellation Energy Group, now headed by Mayo Shattuck, former second in command of
Deutsche Bank until resigning September 12, 2001. (Under Shattuck, Deutsche Bank
handled a flurry of short selling of United Airlines stock in the three days before
the 9/11 attacks, when a hijacked United Airlines plane crashed into the World Trade
Center and another crashed in a field in Pennsylvania.) Since the Energy task force
issued its report, Constellation grew substantially. The Baltimore-based company has
ridden higher wholesale energy prices to record revenues, more than $19 billion in
2006.
Former Defense Secretary Rumsfeld is not the only friend Cheney brought
with him into the Bush Administration. He hired lobbyist Nancy Dorn to be his
legislative affairs assistant, after she worked for the governments of Pakistan,
Kazakhstan, and Azerbaijan and the Houston-based Coastal Corporation, owned by Oscar
Wyatt. Both Wyatt and Coastal received oil from Saddam Hussein, again as part of the
U.N. Oil-for-Food program. A CIA report stated Wyatt and Coastal reaped $23 million
in profits during the program, and in return, Coastal paid Saddam bribes of
$201,000.
Cheney also reportedly had “cordial relations” with Yassin
Al-Qadi, the wealthy Saudi who offered $500,000 to the Bush/Cheney campaign in 2000,
one year before he would be designated a terrorism financier, accused of supporting
Hamas and Al Qaeda.
And Cheney’s chum Philip Merrill, a wealthy neo-con, oversaw the
U.S. trade agency whose sloppy work frequently benefited Iraq contractors including
Halliburton. The Export-Import Bank in 2004 approved loans worth more than $1
billion for Halliburton projects in Qatar and Mexico. Meanwhile, a group of
investors sent Merrill a letter about Halliburton, alerting him to a corruption
investigation underway by the Securities and Exchange Commission. (The SEC
investigated allegations that a Halliburton subsidiary paid a $180 million bribe to
get a liquefied natural gas plant contract in Nigeria – while Cheney was still CEO.)
Merrill claimed the letter had been lost, but was later accused of forwarding it
directly to Vice President Cheney.
French and Nigerian officials are still
investigating the case, while the FBI probes how Halliburton won several of its Iraq
contracts.
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Sources
- “The Curse of Dick Cheney: The veep's career has been marred by one disaster after another,” August 25, 2004, Rolling Stone, T.D. ALLMAN
- http://www.rollingstone.com/politics/story/6450422/the_curse_of_dick_ cheney/
- “Dick Cheney, Fiscal Conservative?” July 28, 2000, The New York Times, Robert S. McIntyre
- “The Fifth Estate: The Unauthorized Biography of Dick Cheney,” October 6, 2004, CBC-TV, http://www.cbc.ca/fifth/dickcheney/vice.html
- http://www.whitehouse.gov/energ y/Chapter8.pdf
- “The White House Staff: Inside the West Wing and Beyond,” 2000, Washington, D.C.: Brookings Institution Press, pp. 300-312, BRADLEY H. PATTERSON, www.americanpresident.org
- Papers Detail Industry’s Role in Cheney’s Energy Report, Washington Post, July 18, 2007: http://www.washingtonpost.com/wp-dyn/content/article/2007/07/17/AR2007071701987.html ?nav=rss_politics
- Flaws Found in KBR Water Supply in Iraq, Houston Chronicle, March 10, 2008: http://www.chron.com/disp/story.mpl/headline/biz/5608455.html
- “Iraq rebuilding contracts awarded: Halliburton, Stevedoring Services of America get government contracts for early relief work,” March 25, 2003, CNN/Money, MARK GONGLOFF
- “Halliburton job bigger than thought: Army says $7 B contract to repair Iraq's oil fields includes operations and oil distribution,” May 7, 2003, CNN
- Firm's Iraq Deals Greater Than Cheney Has Said, Washington Post, June 23, 2001: http://www.washingtonpost.com/ac2/wp-dyn?pagename=article&node=&contentId=A3 5751-2001Jun22