Congressional Budget for the United States Government for Fiscal Year 2005-Continued

CONGRESSIONAL BUDGET FOR THE UNITED STATES GOVERNMENT FOR FISCAL YEAR 2005-CONTINUED

Mr. DURBIN. Mr. President, the Senator from Arizona is on to an interesting concept and I will offer a second-degree amendment to expand a good idea. The amendment which I will offer will suggest we can also offset the expenses of veterans health care by profits paid to and penalties paid by sole-source contractors doing business in Iraq.

I took a look at some of the companies doing business in Iraq. It turns out they are making not only outrageous profits, but they are under investigation by our Government. Sole-source contractors, such as Halliburton and Bechtel-and as you look at some of the figures, I would concede some of the figures relative to fees are stunning but, frankly, Halliburton puts them to shame. Halliburton's Kellogg Brown & Root subsidiary is under mounting scrutiny since last fall over suspicions that a fuel contract the company signed in May overcharged United States taxpayers by $61 million, up to the end of September and $20 million a month since then.

This is rather lengthy. I will try to get it together quickly because there are so many things Halliburton has been involved in. Let me go through the chronology of Halliburton and how we believe they substantially overcharged the taxpayers. Incidentally, this is not a partisan observation. The Pentagon has turned Halliburton in to the SEC. Let me go through the chronology.

December 11, 2003, a Pentagon audit finds substantial overcharging in $1.2 billion of Halliburton fuel sales in Iraq;

January 14, 2004, Pentagon audit asks Defense inspector general to launch a formal investigation;

January 22, Halliburton discloses two workers took large kickbacks as part of a $6.3 million overcharging scheme involving a Kuwaiti-based company;

February 1, investigators find Halliburton overcharged more than 16 million for meals at a United States base in Kuwait;

February 3, total overbill for meals rises to $36 million.

This keeps growing. February 16, the company agrees to withhold billing on additional $140 million in food services. Now the numbers are really adding up quickly.

March 10, Defense inspector general asks Justice Department to begin the investigation of Halliburton. Halliburton has multiple contracts valued at up to $188 billion to support the Army and repair oil fields in Iraq. And the profits, I might add for my colleagues, they are generating obviously allow them to run some very fine television advertising.

I hope my colleagues have all had a chance to see the patriotism of Halliburton and its advertising, but we cannot seem to find the patriotism when it comes to their doing business with the Government. They are overcharging taxpayers, we are being penalized, they are under investigation, and the Senator from Arizona has come up with a wonderful idea. We should tap into the excess profits and penalties of sole-source contractors in Iraq to help veterans health care.

I am sorry we turned down the amendment of the Senator from South Dakota: $2.7 billion for veterans health care the other night was defeated. Of course, I understand why the other side defeated it. We wanted to cut the tax break for the wealthiest Americans from $140,000 a year to $112,000 a year. That was an outrageous idea rejected by the Senate. We said the veterans have to wait for another day.

The day has arrived. We are going after the tobacco settlement. We are going to add Halliburton and Bechtel into this. Frankly, we are going to find excess profits and penalties that can make a difference.

The Members of the Senate may recall not too long ago the Senator from Vermont offered a very valuable amendment during the Omnibus Appropriations bill on profiteering by contractors in Iraq. If I am not mistaken, I believe it passed by a vote of 97-0 in the Senate.

If it is appropriate, I ask the Senator from Vermont, I don't believe that amendment survived the conference committee on the Omnibus Appropriations bill.

Mr. LEAHY. If I could respond.

The PRESIDING OFFICER. Who yields time?

Mr. DURBIN. I am not yielding the floor.

The PRESIDING OFFICER. The Senator only yields for a question.

Mr. DURBIN. If the Senator from Vermont would like to ask a question.

The PRESIDING OFFICER. Time in opposition is controlled by the minority bill manager. The Senator can yield
for a question.

Mr. LEAHY. May I ask the Senator from Illinois a question?

Mr. DURBIN. I am happy to yield.

Mr. DURBIN. I was not aware of that. And if I am not mistaken, I think the Senator from Vermont modeled his amendment after a World War II amendment on profiteering. It is amazing to me we struck the language on profiteering in the omnibus bill, and now look what has happened with Halliburton and other companies. They are being investigated. They are being charged with gouging taxpayers. We are losing money. Frankly, I do not think it is reasonable for taxpayers to have to pay this. The Senator from Arizona is on to a good idea.

Let me give you a couple other examples he might be interested in. According to a recent NBC News report, another politically connected Pentagon contractor, DynCorps, is hiring senior people to train Iraqi police at a cost to American taxpayers of some $400,000 a year per trainer. Counting living expenses, tax liability, and reimbursements, it is worth about $50 million so far. It turns out the contract only had one bidder. It is expected to generate about $800 million in revenue to DynCorps over the next 2 years.

Let me say, when the Senator from Arizona yields back his time, I will be offering a second-degree amendment. We will have a chance to vote on Halliburton before we get to the tobacco settlement.