Congress Discusses KBR Abuse Charges

By DONNA BORAK AP Business Writer
The Associated Press
April 19, 2007, 3:44PM

WASHINGTON — U.S. lawmakers on Thursday railed against senior Army officials and defense contractor KBR Inc. over persistent allegations of fraud and contract abuse on a multibillion-dollar deal to provide food and shelter to U.S. troops in Iraq.

"Profiteering during wartime is inexcusable," said Sen. Byron Dorgan, D-N.D., testifying at a Senate Armed Services Committee hearing. "This is the most significant waste, fraud and abuse we have ever seen in this country."

Lawmakers and the U.S. inspector general have accused KBR, formerly a division of Halliburton Co., which was once headed by Vice President Dick Cheney, of abusing federal rules in record-keeping on the current contract. Nearly $2 billion in overpricing on the contract has been identified by Pentagon auditors and government investigators, lawmakers said.