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CNN SATURDAY MORNING NEWS

Analysis of Contracts Given to Halliburton

Aired May 10, 2003 - 08:39   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

ANDERSON COOPER, CNN CORRESPONDENT: Time now to talk about a multi-billion dollar contract the government gave to a company Vice President Dick Cheney used to run. That has sparked a firestorm of sorts on Capitol Hill, especially since no other company bid on the work.
CNN's senior political analyst Bill Schneider joins us this morning to try to sort it all out -- good morning, Bill.

WILLIAM SCHNEIDER, CNN CORRESPONDENT: Good morning, Anderson.

COOPER: So, there are actually two contracts. There's this Halliburton contract, which just provides services to U.S. personnel in Iraq. That's like, I think they've spent some $90 million so far on that. But that was a competitive bid. The one that's really garnered a lot of controversy is the non-competitive bid for rebuilding the oil fields, right?

SCHNEIDER: That's right. That was awarded by the Army Corps of Engineers. It is a very lucrative contract. It was supposed to be an emergency bid to restore, put out oil fires and restore the operation of the oil fields. But now it has been extended to the operation of facilities and the distribution of products from those oil fields and it is an open-ended contract.

The fact that it was bid without -- it was awarded without bidding, the fact that it's the vice president's oil company -- Vice President Cheney headed that company in Dallas for five years before he resigned. He now owns no stock in that company since he became, went on the ticket to become vice president in August, 2001, does raise a lot of questions about whether this is inappropriate or unethical. And at least one congressman, Henry Waxman of California, and Senator Frank Lautenberg of New Jersey, they're both demanding an investigation of how that contract was awarded.

COOPER: Do the Democrats see this as something that's going to come up during the next elections?

SCHNEIDER: I think they do. I think they're going to talk about Halliburton. They've got to be careful, however, about one thing. There are some critics of the war all along who have said the purpose of this war is to make money for American business, that it's a war for oil. You saw those signs all over the world -- "No Blood for Oil."

I think the Democrats would have a hard time making the argument to most Americans, who simply don't believe that, that this was all about wining lucrative contracts. But the procedure in which this contract was awarded is, however, very questionable. This administration is the most corporate administration in American history, more CEOs in the cabinet than ever before. A business, a former business executive is, are both president and vice president of the United States. So the Democrats believe that they can tie the administration to abuses by major corporations.

So far, that has not worked. The corporate scandals of last year did not seem to taint this administration, mostly because, number one, President Bush has an image and reputation of honesty and character. And number two, he was very aggressive in going after wrongdoers and treating it as a law and order issue.

So it didn't stick before, but it may have another try in 2004.

COOPER: Well, if, as it seems at least a couple of Democrats really want to give it another try, so we'll see what happens.

Bill Schneider, thanks for joining us.

Appreciate it.

SCHNEIDER: Sure, Anderson.

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