Reality Bites
The campaign issue that wasn't
Cheney's oil company in shady business deals with Iraq
By Martin A. Lee
http://www.sfbg.com/reality/04.html
Here's a whopper of a story you may have missed amid the cacophony of
campaign ads and stump speeches in the run-up to the elections. 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 1988 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. Its 1999 income was a cool $15
billion.
In addition to Iraq, Halliburton counts among its business partners several
brutal dictatorships that have committed egregious human rights abuses,
including the hated military regime in Burma (Myanmar). EarthRights, a
Washington, D.C.-based human rights watchdog, condemned Halliburton for two
energy-pipeline projects in Burma that led to the forced relocation of
villages, rape, murder, indentured labor, and other crimes against humanity.
A full report (this is a 45 page pdf file - there is also a brief summary) on
the Burma connection, "Halliburton's Destructive Engagement," can be accessed
on EarthRights' Web site, www.earthrights.org.
Human rights activists have also criticized Cheney's company for its
questionable role in Algeria, Angola, Bosnia, Croatia, Haiti, Rwanda,
Somalia, Indonesia, and other volatile trouble spots. In Russia,
Halliburton's partner, Tyumen Oil, has been accused of committing massive
fraud to gain control of a Siberian oil field. And in oil-rich Nigeria,
Halliburton worked with Shell and Chevron, which were implicated in gross
human rights violations and environmental calamities in that country. Indeed,
Cheney's firm increased its involvement in the Niger Delta after the military
government executed several ecology activists and crushed popular protests
against the oil industry.
Halliburton also had business dealings in Iran and Libya, which remain on the
State Department's list of terrorist states. Brown and Root, a Halliburton
subsidiary, was fined $3.8 million for reexporting U.S. goods to Libya in
violation of U.S. sanctions.
But in terms of sheer hypocrisy, Halliburton's relationship with Saddam
Hussein is hard to top. What's more, Cheney lied about his company's
activities in Iraq when journalists fleetingly raised the issue during the
campaign.
Questioned by Sam Donaldson on ABC's This Week program in August, Cheney
bluntly asserted that Halliburton had no dealings with the Iraqi regime while
he was on board.
Donaldson: I'm told, and correct me if I'm wrong, that Halliburton, through
subsidiaries, was actually trying to do business in Iraq?
Cheney: No. No. I had a firm policy that I wouldn't do anything in Iraq –
even arrangements that were supposedly legal.
And that was it! ABC News and the other U.S. networks dropped the issue like
a hot potato. As damning information about Halliburton surfaced in the
European press, American reporters stuck to old routines and took their cues
on how to cover the campaign from the two main political parties, both of
which had very little to say about official U.S. support for abusive
corporate policies at home and abroad.
But why, in this instance, didn't the Democrats stomp and scream about
Cheney's Iraq connection? The Gore campaign undoubtedly knew of Halliburton's
smarmy business dealings from the get-go. Gore and Lieberman could have made
hay about how the wannabe GOP veep had been in cahoots with Saddam. Such
explosive revelations may well have swayed voters and boosted Gore's chances
in what was shaping up to be a close electoral contest.
The Democratic standard-bearers dropped the ball in part because
Halliburton's conduct was generally in accordance with the foreign policy of
the Clinton administration. Cheney is certainly not the only Washington mover
and shaker to have been affiliated with a company trading in Iraq. Former CIA
Director John Deutsch, who served in a Democratic administration, is a member
of the board of directors of Schlumberger, the second-largest U.S.
oil-services company, which also does business through subsidiaries in Iraq.
Despite occasional rhetorical skirmishes, a bipartisan foreign-policy
consensus prevails on Capital Hill, where the commitment to human rights,
with a few notable exceptions, is about as deep as an oil slick.
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 – 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.
Martin A. Lee is author of HThe Beast Reawakens, a book about resurgent
fascism.
His column, Reality Bites, appears every Monday on sfbg.com.
