From Riverbend's blog
As for employing the locals… things are becoming a little bit clearer. Major reconstruction contracts are being given to the huge companies, like Bechtel and Halliburton, for millions of dollars. These companies, in turn, employ the Iraqis in the following way: they first ask for bids on specific projects. The Iraqi company with the lowest bid is selected to do the work. The Iraqi company gets *exactly* what it bid from the huge conglomerate, which is usually only a fraction of the original contract price. Hence, projects that should cost $1,000,000 end up costing $50,000,000.
Now, call me naïve, or daft, or whatever you want, but wouldn’t it be a. more economical and b. more profitable to the Iraqis to hand the work over directly to experienced Iraqi companies? Why not work directly with one of the 87 companies and factories that once worked under the ‘Iraqi Military Council’ and made everything from missiles to electrical components? Why not work directly with one of the 158 factories and companies under the former Ministry of Industry and Minerals that produced everything from candy to steel girders? Why not work with the bridge, housing and building companies under the Ministry of Housing that have been heading the reconstruction efforts ever since 1991?
Some of the best engineers, scientists, architects and technicians are currently out of work because their companies have nothing to do and there are no funds to keep them functioning. The employees get together a couple of days a week and spend several hours brooding over ‘istikans’ of lukewarm tea and ‘finjans’ of Turkish coffee. Instead of spending the endless billions on multinational companies, why not spend only millions on importing spare parts and renovating factories and plants?
http://riverbendblog.blogspot.com/Just who are we supposed to be heling in Iraq? The Halliburton contract is classified so this is all going on completely under the radar. This needs to be investigated. Democrats should not budge until they get a full accounting.