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Prometheus 6

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War profiteers


Between November 2003 and July 2004, Eagle made 379 flights as part of the subcontract, charging some $13.3 million — an amount that included $1.1 million in overcharges. It is not clear whether KBR knew of the overcharging scheme, but the papers say that Mr. Smoot and an Eagle subordinate delivered nearly $34,000 in gratuities to KBR employees “to obtain or reward favorable treatment” in connection with the contract.

Bribery Network to Bloat War Costs Is Alleged
By JAMES GLANZ

Federal investigators have uncovered what they describe as a sweeping network of kickbacks, bribes and fraud involving at least eight employees and subcontractors of KBR, the former Halliburton subsidiary, in a scheme to inflate charges for flying freight into Iraq in support of the war, according to court papers unsealed yesterday.

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