Halliburton Chief's Move to Dubai Evokes Warnings on Hill

March 14th, 2007 2:42 am

By Steven Mufson and Dana Hedgpeth / Washington Post

Ever since Erle P. Halliburton established the New Method Oil Well Cementing Co. in Oklahoma in 1919, his name has been associated with American corporate know-how in the oilfield services business.

But over the weekend, the company now known as Halliburton announced that its chief executive, Dave Lesar, would move to a new corporate headquarters in Dubai to focus on business in the Middle East, Africa, Europe and Asia.

The announcement sparked warnings from members of Congress, who suspected that the company once run by Vice President Cheney was trying to trim its tax bill and remove itself from the limelight here, where it has come under fire about the way it obtained and executed government contracts, especially those connected to troubled reconstruction projects in Iraq.

"The CEO of Halliburton has decided to leave this country to move his offices to Dubai because he says it is 'a great business center.' That is a bizarre announcement," said Sen. Byron L. Dorgan (D-N.D.), who is a member of the Senate Commerce Committee.

Dorgan, who said he would seek hearings on the move, added: "I want to know, is Halliburton trying to run away from bad publicity on their contracts? Are they trying to run away from the obligation to pay U.S. taxes? Or are they trying to set up a corporate presence in Dubai so that they can avoid the restrictions that currently exist on doing business with prohibited countries like Iran?"