CURRENT INVESTIGATIONS

• In May, the Defense Contract Audit Agency (DCAA) recommended to the Department of Defense that it refuse to pay Halliburton's KBR subsidiary for $159.5 million in meal overcharges. The DCAA said the subsidiary charged the government for thousands of meals in and around Iraq that were never served to the troops. The DCAA continues to audit bills submitted by KBR for feeding soldiers in Iraq and Kuwait.
  
  
• The United Nation's International Advisory and Monitoring Board is investigating Halliburton's no-bid contract to repair Iraq's oil infrastructure. The contract was awarded to Halliburton in March 2003. The Board was established by the U.N. Security Council to oversee spending by the U.S.-led Coalition Provisional Authority in Iraq. The Board had requested audit reports from the Bush administration in March 2004 and has publicly complained that the administration is dragging its feet on supplying the requested documents.
  
  
• Iraq's interim government is conducting a broad review of the $1.2 billion contract given to KBR in January 2004 to restore the oil infrastructure in southern Iraq.
  
  
• The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) is investigating the legality of Halliburton's business dealings in Iran, a country under a U.S. trade embargo. Halliburton sells goods and services to Iranian companies through its Cayman Islands subsidiary. The OFAC referred the case to the Department of Justice, which is conducting its own criminal investigation.
  
  
• Kuwait bribery probe: The U.S. Department of Justice is conducting a criminal investigation of a $6.3 million bribe paid by a Kuwaiti firm to two employees of KBR. The bribe was paid to the employees in exchange for KBR awarding a contract to the Kuwaiti firm.
  
  
• Nigeria bribery probe: The U.S. Department of Justice is conducting a criminal investigation into an alleged $180 million bribe paid by Halliburton and three other companies to the government of Nigeria. The alleged bribe was paid in exchange for awarding a contract to the companies to build a $4 billion natural gas plant in Nigeria's southern delta region. The bribes were paid during the time when Dick Cheney was CEO of Halliburton. The U.S. Securities and Exchange Commission opened its own formal investigation on June 11, 2004.
  
  
• The French government is conducting an investigation of the same bribery allegations as the U.S. Justice Department.
  
  
• United Kingdom's Department of Trade and Industry is investigating the Nigeria bribery allegations as well.
  
  
• The U.S. Securities and Exchange Commission is investigating a second bribery case involving Nigeria. Halliburton admitted that its employees paid a $2.4 million bribe to a government official of Nigeria for the purpose of receiving favorable tax treatment.
  
  
• The Pentagon's Defense Criminal Investigative Service (DCIS) is investigating Halliburton's prices for importing gasoline from Kuwait into Iraq. The DCIS will determine whether $61 million in alleged gasoline overcharges by Halliburton violated criminal statutes.