> BTW, you probably know this, but Kellogg Brown &Root was literally
> created through contracts like this back in the 30s. LBJ was known as the
> candidate from Brown &Root.
>
That's a good Texas Observer article.
Seems back then, KBR's role was more behind the scenes, but equally connected.
Today, KBR is the Halliburton subsidiary where Halliburton books 46% of its revenues (current and expected). Most of these revenues are from government contracts. It doesn't need to donate as much in the form of political contributions because of the revolving door from Houston to DC.
Also, the money to KBR keeps flowing in from the government regularly. In addition to new contracts, KBR has an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with the government to provide services on demand in any situation the government deems an emergency (like a war).
Through some bizarre global settlement deal, Halliburton is bankrupting a portion of KBR. That portion is taking down with it all the asbestos lawsuits (over 300,000 of them) that Cheney bought in 1998 when as CEO of Halliburton he took over Dresser. Those liabilities will be capped at $2.8bln. The rest of KBR, the part where all the government monies get booked, will remain intact.
I can't think of any similar corporate situation.
Nomi -------------- next part -------------- An HTML attachment was scrubbed... URL: <../attachments/20030421/d66013a0/attachment.htm>