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<DIV><FONT color=#000080><FONT size=3><FONT color=#000000><FONT
face="Times New Roman"><STRONG>Molly Ivins: Cheney's risky
business<o:p></o:p></STRONG></FONT></FONT></FONT></DIV>
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style="FONT-SIZE: 13px; FONT-FAMILY: verdana,geneva,arial,helvetica,sans-serif">
<H2>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">By Molly
Ivins<o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">Published 2:15 a.m. PDT Thursday,
June 6, 2002</FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman"><o:p><A
href="http://www.sacbee.com/content/opinion/national/ivins/story/3136757p-4179227c.html">http://www.sacbee.com/content/opinion/national/ivins/story/3136757p-4179227c.html</A></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face=Georgia
color=#000080><o:p></o:p></FONT></FONT></FONT> </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">AUSTIN, Texas -- The Securities and
Exchange Commission is now investigating Halliburton -- the company formerly run
by Vice President Dick Cheney -- for accounting irregularities. What took so
long? <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">Dick Cheney's record at Halliburton
is one of the most under-covered stories of the past three years. When you
consider all the time and ink spent on Whitewater, the neglect of the
Cheney-Halliburton story is unfathomable. <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">The proximate cause of the SEC
investigation is an "aggressive accounting practice" at Halliburton approved by
the accounting firm Arthur Andersen -- a little matter of counting revenue that
had not yet been received, $100 million worth. The New York Times reports two
former executives of Dresser Industries, which merged with Halliburton in 1998,
say Halliburton used the accounting sham to cover up its losses. Dresser may
have thought it got a bad deal in that merger because of that $100 million
"anticipation" on the credit line, but the deal turned out to be much more sour
for Halliburton. <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">Cheney bought himself a former
Dresser subsidiary facing 292,000 claims for asbestos-caused health problems. He
said at the time the merger was "one of the most exciting things I've ever been
involved in" and predicted it would benefit Halliburton's customers, employees
and shareholders. The first thing that happened was Halliburton eliminated
10,000 jobs. (It was always amusing to hear Cheney on the campaign trail in 2000
claiming he had been out in the private sector "creating jobs.")
<o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">According to executives at
Halliburton, Cheney knew about the asbestos liability before the merger and
considered the risk. Because of the liability, Halliburton's stock has fallen
from over $60 to under $20. In January, the company had to deny rumors it was
going into bankruptcy. In other words, Cheney pretty well ruined the business.
Of course, what the company wants to do now is have Congress pass a new law
limiting asbestos liability. <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">Even more interesting is
Halliburton's governmental record under Cheney. In an August 2000 report, the
Center for Public Integrity noted that Cheney had said publicly the United
States should lift restrictions on American corporations in countries listed by
the government as sponsoring terrorism. Hey, that was then, this is now.
<o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">Despite repeatedly claiming his
company would not do business with Iraq -- he was defense secretary during the
Persian Gulf War -- Halliburton racked up $23.8 million in sales to Iraq in '98
and '99. It did so by using two European subsidiaries, so Halliburton was not
directly violating the sanctions against Iraq. Hey, it was business.
<o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">And striking another blow for freedom
from government interference, Cheney led Halliburton into the top ranks of
corporate welfare hogs, benefiting from almost $2 billion in taxpayer-insured
loans from the U.S. Export-Import Bank and the Overseas Private Investment Corp.
In the five years before Cheney joined the company, it got a measly $100 million
in government loans. Cheney also specialized in getting government contracts for
the firm. During his five years as CEO, Halliburton got $2.3 billion in
contracts, compared to only $1.2 billion in the five years before he took over.
<o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">Most of the government work was done
by Halliburton subsidiary Brown & Root, the construction firm, thus
reinstating a fine old Texas tradition. Brown & Root was Lyndon Johnson's
major money source: It was to LBJ what Enron was to George W.
<o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">This brings to mind a famous story
from the Kennedy-Johnson campaign in 1960 relished by Texans. It's after the
election, and the Democrats win. Kennedy and Johnson are sittin' in the Oval
Office the first day, and the phone rings. It's the Pope of Rome (Texans used to
specify "of Rome," lest you should confuse him with some other pope) on the
phone. He says, "John, my boy, the Vatican roof is leaking something fierce, we
were hopin' y'all might fix it for us." <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">"Of course, Mr. Pope, sir. Just let
me check with my vice president. Lyndon, the Pope's on the phone and wants to
know if we can fix the Vatican roof for him."
<o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">"That's fine with me," says Johnson.
"Just make sure Brown & Root gets the contract."
<o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman">Nice to see tradition reassert
itself. <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT
face="Times New Roman"> <o:p></o:p></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
color=#000000
size=3>--------------------------------------------------------------------------------</FONT></P></H2></DIV></FONT></DIV></BODY></HTML>