Halliburton gets Katrina contract, hires former FEMA director

From HalliburtonWatch.org

1 Sept. 2005

WASHINGTON, Sept. 1 (HalliburtonWatch.org) -- The US Navy asked Halliburton to repair naval facilities damaged by Hurricane Katrina, the Houston Chronicle reported today. The work was assigned to Halliburton's KBR subsidiary under the Navy's $500 million CONCAP contract awarded to KBR in 2001 and renewed in 2004. The repairs will take place in Louisiana and Mississippi.

KBR has not been asked to repair the levees destroyed in New Orleans which became the primary cause of most of the damage.

Since 1989, governments worldwide have awarded $3 billion in contracts to KBR's Government and Infrastructure Division to clean up damage caused by natural and man-made disasters.

Earlier this year, the Navy awarded $350 million in contracts to KBR and three other companies to repair naval facilities in northwest Florida damaged by Hurricane Ivan, which struck in September 2004. The ongoing repair work involves aircraft support facilities, medium industrial buildings, marine construction, mechanical and electrical improvements, civil construction, and family housing renovation.

In March, the former director of the Federal Emergency Management Agency (FEMA), which is tasked with responding to hurricane disasters, became a lobbyist for KBR. Joe Allbaugh was director of FEMA during the first two years of the Bush administration.

Today, FEMA is widely criticized for its slow response to the victims of Hurricane Katrina.

Allbaugh managed Bush's campaign for Texas governor in 1994, served as Gov. Bush's chief of staff and was the national campaign manager for the Bush campaign in 2000. Along with Karen Hughes and Karl Rove, Allbaugh was one of Bush's closest advisers.

"This is a perfect example of someone cashing in on a cozy political relationship," said Scott Amey, general counsel at the Project on Government Oversight, a Washington watchdog group. "Allbaugh's former placement as a senior government official and his new lobbying position with KBR strengthens the company's already tight ties to the administration, and I hope that contractor accountability is not lost as a result."