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----- Original Message -----
Sent: Wednesday, March 12, 2003 5:12 PM
Subject: Money in Politics Alert -- Postwar Profiteers

CENTER FOR RESPONSIVE POLITICS
MONEY IN POLITICS ALERT
Vol. 7, #8;  March 12, 2003
tel: 202-857-0044, fax: 202-857-7809
email: [EMAIL PROTECTED], web: www.opensecrets.org;
www.capitaleye.org; www.fecwatch.org

POSTWAR PROFITEERS
How a handful of construction firms got an early invitation to
rebuild Iraq

By Sheryl Fred

A select group of U.S. construction firms now bidding on a
lucrative government contract to rebuild a postwar Iraq
contributed a combined $2.8 million--68 percent to
Republicans--over the past two election cycles.

The U.S. Agency for International Development asked Bechtel
Group Inc., Fluor Corp., Halliburton Co. subsidiary Kellogg,
Brown & Root, Louis Berger Group Inc. and Parsons Corp. to
submit bids last week for the $900-million contract. This
initial estimate for repairing and building water systems,
roads, bridges, schools and hospitals in the country is just the
first step in what the Wall Street Journal called "the largest
government reconstruction effort since Americans helped to
rebuild Germany and Japan after World War II." The firms that
land the contract are also likely to make the short list for
future projects in Iraq, which include plans to develop the
country's oil industry.

Bechtel, the engineering giant that employed the likes of former
Defense Secretary Caspar Weinberger, former Secretary of State
George Schultz and former CIA Director William Casey before they
took their government posts, gave $1.3 million in individual,
PAC and soft money contributions between 1999 and 2002. As it
prepares its bid for the postwar project, Bechtel is facing
allegations that it contributed to Iraq's military buildup
nearly two decades ago. The San Francisco Chronicle has reported
that a German journalist uncovered a document prepared for the
United Nations by Iraq that says Bechtel was among 24 U.S.
companies that supplied the country with weapons during the '80s.

Kellogg, Brown & Root and parent company Halliburton--which was
headed by Vice President Dick Cheney until 2000--was the
second-largest donor of the group, with more than $709,000 in
contributions. Halliburton also gave more to Bush's presidential
campaign--$17,677--than any of the other bidders combined.

Fluor, which gave more than $483,000 in individual, PAC and soft
money contributions in the previous two election cycles, also
has ties to the Defense Department. Kenneth Oscar, the company's
vice president of strategy and government services, recently
served as the acting assistant secretary of the Army, where he
directed its $35 billion-a-year procurement budget.

Representatives from Bechtel and Halliburton told reporters this
week that they were asked to submit a bid because they've done
similar work with USAID in the past. Both companies participated
in the rebuilding of Kuwait, particularly its oil fields, after
the Gulf War.


###

Click here for the Web version of this report and a chart on
campaign contributions from the bidders:

http://www.capitaleye.org

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