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Media Reports – March 11, 2007
Halliburton will move to Dubai
Halliburton announced on March 11, 2007, that it would be moving its corporate headquarters from Houston to Dubai. Reincorporating in Dubai would mean that Halliburton — which earned $2.3 billion in profits last year — “will be paying less taxes to the U.S. Treasury, even as it collects billions from government contracts.”
Chief Executive Dave Lesar, speaking at a conference in Bahrain, confirmed that he would be relocating. "As the CEO, I'm responsible for the global business of Halliburton in both hemispheres and I will continue to spend quite a bit of time in an airplane as I remain attentive to our customers, shareholders and employees around the world," he said.
Halliburton is under Justice Department Securities and Exchange Commission investigation over allegations of improper dealings in Iraq, Kuwait and Nigeria, and now the company is moving its headquarters and its chief executive officer, David J. Lesar, to Dubai. Halliburton will remain a US company subject to US laws, but Dubai has no extradition agreement with the United States, meaning that Mr. Lesar could not be compelled to return to the US to testify, stand trial or serve any sentence related to any Halliburton activities under investigation.
Halliburton, which has been given no-bid contracts worth 25.7 billion dollars in Iraq, is accused of charging the Pentagon $250,000 for leasing a vehicle (that can be bought for $30,000), or $10 for a 10-cent can of soda, or $100 for a tiny piece of laundry.
It has been accused of giving rotten food and contaminated water and poor protection to the US troops.
Political observers believe that Halliburton is moving to Dubai to avoid any subpoenas that are forthcoming in Congressional hearings. “If you know anything about the Arab countries, they do not uphold any other laws other than their own. So, when Cheney leaves office, he will move to Dubai and won’t be able to be subpoenaed for questioning in all that he has done wrong in this Administration.”
This is really about Halliburton moving its financial and legal records to a place beyond the reach of U.S. lawsuits and subpoenas before they can be investigated.
Democrats have been extremely critical of Halliburton, once headed by Vice President Cheney. The company has received contracts valued at an estimated $25.7 billion for its work in Iraq. Among the company’s low points, serving troops spoiled food. Exposing troops to contaminated water from the Euphrates river. And failing to adequately protect its contractors. And last month, the Inspector General for Iraq found Halliburton overcharged the government, $2.7 billion. Which Halliburton is still contesting.
Sen. Hillary Clinton (D-NY): “I think it is disgraceful that American companies are more than happy to try to get no-bid contracts like Halliburton has and then turn around and say we are not going to stay with our Chief Executive Officer or the President of our company in the U.S. anymore. Well I am proud to be an American and I am proud to be part of the greatest country in the world.”
Sen. Chuck Schumer (D-NY): “For one of the largest contractors with the United States government to move its headquarters overseas? [It] just doesn’t look good, doesn’t sound good, doesn’t smell good.”
Sen. Byron Dorgan (D-ND): “I want to know, is Halliburton trying to run away from bad publicity on their contracts?”
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