posted on April 26, 2004 03:55:27 PM new
WASHINGTON - Ten companies with billions of dollars in U.S. contracts for Iraq reconstruction have paid more than $300 million in penalties since 2000 to resolve allegations of bid rigging, fraud, delivery of faulty military parts and environmental damage.
The United States is paying more than $780 million to one British firm that was convicted of fraud on three federal construction projects and banned from U.S. government work during 2002, according to an Associated Press review of government documents.
A Virginia company convicted of rigging bids for American-funded projects in Egypt also has been awarded Iraq contracts worth hundreds of millions. And a third firm found guilty of environmental violations and bid rigging won U.S. Army approval for a subcontract to clean up an Iraqi harbor.
Seven other companies with Iraq reconstruction contracts have agreed to pay financial penalties without admitting wrongdoing. Together, the 10 companies have paid to resolve 30 alleged violations in the past four years. Six paid penalties more than once. But the companies have been awarded $7 billion in Iraq reconstruction contracts.
The contracts are legal because the Bush administration repealed regulations put in place by the Clinton administration that would have allowed officials to bar new government work for companies convicted or penalized during the previous three years.
The two largest government contractors in Iraq, Bechtel Corp. and Halliburton Co., have paid several penalties in the past three years.
