Whistleblower quizzed about Halliburton deal

WASHINGTON — FBI agents recently spent a day interviewing the Army contracting officer who raised concerns that the Pentagon improperly awarded contracts without competition to Halliburton Co., Vice President Dick Cheney's former company.

The Army Corps of Engineers contract officer, Bunnatine Greenhouse, was interviewed last week and now is gathering documents requested by the FBI and Army criminal investigators, her lawyer said Wednesday.

"They questioned her about all of her concerns, and they asked questions regarding potential involvement of people at higher-level positions," attorney Michael Kohn said in an interview.

The Associated Press reported last month that the FBI had expanded a criminal probe into allegations Halliburton overcharged the government for fuel, adding questions about whether the Bush administration had improperly awarded business without bidding to Halliburton in Iraq and the Balkans.

Both the company and the administration deny any wrongdoing. Cheney's office has said he has had nothing to do with the government contracts that have gone to the company, which he headed in the 1990s until joining President Bush on the 2000 Republican ticket.

In a related development, the inspector general reviewing the spending of U.S. funds in Iraq is recommending the Army consider withholding 15 percent of Halliburton's money on future contracts to address allegations the company has not documented all of the work it has been paid for in the past.

Halliburton spokeswoman Cathy Gist said Wednesday night the company was aware of discussions about a 15 percent withholding but had not been formally told of any plan to implement it. "We will continue to work directly with our client regarding resolution for this issue," she said.

A spokesperson for the Army did not immediately return calls seeking comment.

Greenhouse has alleged that she began raising questions to her superiors about why the Pentagon was allowing business to go to Halliburton's KBR subsidiary without competitive bidding and then was frozen out from decisions when she pressed her concerns.

Halliburton's relationship with the Bush administration — along with allegations of possible favoritism — was made a campaign issue by Democrats. Greenhouse's allegations last month caught the attention of the FBI.