Halliburton history could haunt Cheney in the debate
By ROBERT TRIGAUX
Published October 4, 2004
On the day before this campaign's one and only vice presidential debate, no look at stalwart Vice President Dick Cheney can be complete without a glance back at his rather brief but vastly enriching role as CEO of the Texas oil services company Halliburton.
Halliburton. Right or wrong, it's a business name that has blossomed since the last election - and might one day surpass Enron - as a word synonymous with corporate cronyism and insider dealing. Both happen to be Houston energy companies.
That's hardly the legacy Halliburton sought when CEO Cheney resigned after five years to join the Bush-Cheney ticket in July of 2000. Nor is the mantle of corporate coziness one an unapologetic Cheney chose to wear these past four years as vice president.
But the war in Iraq and the federal government's controversial decision to give Halliburton subsidiary Kellogg Brown & Root a no-bid, multibillion-dollar military contract continues to link Cheney and his former corporation even as he seeks a second term on the Bush-Cheney ticket.
It's a connection Sen. John Edwards, John Kerry's vice presidential running mate and a lawyer well versed in courtroom argument, is sure to exploit in Tuesday's debate.
Conservatives quick to defend Cheney note that many big defense contracts are no-bid awards. They ask if it was okay in President Clinton's administration to award Halliburton a no-bid contract, why not now? Well, here's one answer: The vice president then was not the ex-CEO of the company.
The Kerry-Edwards campaign late last month aired a new TV ad that shows Cheney on a Meet the Press show denying financial ties to Halliburton. The ad then notes how the vice president received millions in a delayed compensation package from Halliburton, while the company was awarded a $7-billion, no-bid contract in Iraq.
Cheney is known around the Pentagon as "Deadpan Dick" and around the White House as "Darth Vader" for his dark but fatherly role in guiding the younger President Bush. He has proved unflappable to the Halliburton criticisms.
In speeches, the broad and balding Cheney successfully uses self-deprecation when he jokes that "Edwards was picked for his pretty looks, sexiness and great hair. ... and so was I."
Young by comparison and lean on broad government experience, Edwards might be sorely challenged to dent Cheney's formidable, senior-statesman presence. But Halliburton remains a clear liability.
Cheney has enjoyed a long and varied career in Washington as a member of Congress who worked in various Republican administrations. He served as secretary of defense during the Persian Gulf War under President George Bush, the president's father.
Cheney's government experience was impressive but hardly lucrative. So it comes with at least some surprise that Cheney, with little if any corporate management experience, would be picked in 1995 as chief executive of a major energy services company whose profits depend heavily on big federal contracts.
For Cheney, Halliburton proved a gold mine. From 2000 through 2002, after leaving Halliburton, Cheney and wife, Lynne, pulled in a remarkable $41.6-million. That made them the richest couple to occupy the vice president's quarters in U.S. history.
Despite big Iraq contracts, Halliburton struggles with problems. Here are just three:
* For years, the company's Kellogg Brown & Root (KBR) subsidiary allegedly overcharged the government on Iraq contracts. Halliburton denied overcharging but now wants to sell KBR.
* In 1998, when Cheney was CEO, Halliburton boosted its income by changing how it accounted for cost overruns on construction projects. Though legal, the change was never disclosed to investors. The SEC fined and sued Halliburton's former controller and chief financial officer, but looked no higher. Former CEO Cheney denied he knew anything about it.
* The Justice Department is investigating allegations that former Halliburton employees accepted bribes involving a $5-billion project in Nigeria while Cheney was CEO.
Just one vice presidential debate? These candidates will barely scratch the surface.
