Halliburton set for spotlight in vice presidential debates

1.00pm - By SUE PLEMING

WASHINGTON - A name likely to come up in the vice presidential debate is Halliburton, the Texas company once run by Dick Cheney that Democrats say is an example of cronyism because of its lucrative Iraq deals.

Democrats expect their vice presidential choice, former trial lawyer Senator John Edwards, to seize on the Halliburton issue in the debate on Tuesday (Wednesday NZ time) with Vice President Cheney, whose advisers say their opponent's allegations are baseless and false.

Halliburton is the military's biggest contractor in Iraq, with potential business of up to US$18 billion ($27.14 billion), according to government estimates, and is a lightning rod of Democratic criticism.

Cheney, who strongly denies any impropriety, was chief executive officer of Halliburton from 1995 until 2000 when he joined the Republican ticket for the White House.

Strategists from both sides laid out their positions on the eve of the debate in Cleveland, Ohio.

"The vice president has answered, when asked at various venues, questions about these patently false charges. They seem not to want to know the truth," said Cheney campaign adviser Mary Matalin of Democratic claims.

She added: "Dick Cheney had nothing to do with the (Halliburton) contracts. He does not have any conflict of interest with Halliburton."

However, Democratic Senator Tom Harkin used harsh words against Cheney, comparing him to Spiro Agnew, the Nixon administration vice president who resigned under a flurry of corruption charges.

"One of the reasons I think Cheney and Bush are fighting so hard is they are afraid that if we take over the administration and start looking at this stuff, there could be some charges filed. I refer to Dick Cheney as the Spiro Agnew of 2004," said Harkin, a Democrat from Iowa.

The company is the focus of several government investigations covering periods both during and after Cheney's tenure as chief executive officer.

The Justice Department is investigating allegations former Halliburton employees accepted bribes in Nigeria while Cheney was CEO and the company is also being questioned over whether it overcharged for work in Iraq.

In August, the firm agreed to pay US$7.5 million to settle allegations it failed to disclose a key accounting change in 1998 while Cheney was still in charge.

Several documents have emerged indicating Cheney's office was aware Halliburton would get business in Iraq before it was announced, but no "smoking guns" have been found showing any impropriety or direct meddling by the vice president.

The Democrats point to deferred compensation Cheney gets from Halliburton and future stock options in the company as a potential conflict of interest. Income tax returns from 2003 show Cheney got US$178,437 in deferred pay.

"I am saying that there is a web here of connections with Dick Cheney and Halliburton and no bid contracts and his stock options and his friends. A good trial attorney could have, I think, a field day in court with that one," said Harkin.

Halliburton spokeswoman Wendy Hall said the political rhetoric in the build-up to the debates served no purpose.

"All we can say is, we remain a convenient tool for those who oppose the war in Iraq. Our record in supporting the military has been outstanding. We get this work because we are good at it."

The company said last month it was considering selling Kellogg Brown & Root, the unit doing billions of dollars of work in Iraq, in a bid to get out of the spotlight.

- REUTERS