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Nigeria Orders an Investigation of Halliburton Gas Payments

February 7, 2004
  By THE ASSOCIATED PRESS
ABUJA, Nigeria, Feb. 6 - Nigeria on Friday ordered an
investigation into allegations that a Halliburton
subsidiary paid $180 million in bribes to land a natural
gas project contract here. Vice President Dick Cheney was
head of Halliburton at the time.
The allegations are already under scrutiny in the United
States and France. Inquiries by the United States Justice
Department and the Securities and Exchange Commission were
disclosed this week.
President Olusegun Obasanjo has ordered a "high-level
investigation" into the allegations, a presidential
spokeswoman, Remi Oyo, said here in the capital.
Ms. Oyo said the investigation was being led by the
Economic and Financial Crimes Commission, a body Mr.
Obasanjo set up to fight rampant breaches of financial law.
The $4 billion Nigerian Liquefied Natural Gas Plant was
built in the 1990's by a consortium that included Kellogg
Brown & Root, a unit of Halliburton.
Cathy Gist, a spokeswoman for Halliburton, which is based
in Houston, said that the Nigerian government had not
notified the company of the investigation and that
Halliburton did not have reason to assume any of its
employees or those employed by the joint venture had
violated the Foreign Corrupt Practices Act. The act bars
American businesses and individuals from bribing foreign
officials.
Ms. Gist said the company would cooperate with
investigations by United States officials.
Justice Department officials disclosed Wednesday that the
department was reviewing documents voluntarily provided by
Halliburton to determine whether to begin a full
investigation.
Halliburton, already under fire for what the Pentagon says
are overcharges in contracts related to the war in Iraq,
revealed the Justice Department request in a filing on Jan.
21 with the Securities and Exchange Commission.
"Management made the decision to include these statements
because of the politically charged environment in which we
now operate," Ms. Gist said. "We are trying to keep the
investment community informed of the accurate facts about
the company's business."
According to Halliburton's filing, the illegal payment
allegations involve a joint venture of which K.B.R. was a
25 percent owner. The other partners were Technip of
France, ENI of Italy and Japan Gasoline.
The filing says the Justice Department and Securities and
Exchange Commission are reviewing the allegations. The
payments for the gas plant contract were said to have been
made to Nigerian officials.
http://www.nytimes.com/2004/02/07/international/africa/07NIGE.html?ex=1077361824&ei=1&en=bab6e0ecb3fc5fed
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