Iraq Contractors

DoD IG: KBR Overcharged The Navy After Hurricane Katrina

Andrew Tilghman | June 17, 2008, 6:40PM

We pointed out this morning the New York Times story that suggested KBR was over charging the military on Iraq-related contracts and threatening to cut off services to combat troops if the bills weren't paid.

Now here's another one about KBR's billing. This time from the Department of Defense Inspector General. And it looks at the company's role in the clean-up efforts after Hurricane Katrina.

The Houston Chronicle reports:

The Pentagon Inspector General said he could find no documentation in Navy contracting files to back up KBR claims it paid fair and reasonable prices to subcontractors that served meals in New Orleans.

"The prices KBR agreed to pay were greatly inflated," the 86-page audit said.

"The Navy paid approximately $4.1 million for meals and services we calculate should have cost $1.7 million, more than a $2.3 million difference," said the audit, signed by Assistant Inspector General for Acquisition Management Richard Jolliffe.

. . . Altogether, the audit requested that the Navy seek refunds of at least $8.5 million for "inappropriate" payments to KBR.

Curt Weldon

A Joint U.S.-Russian Weapons Company?

Andrew Tilghman | June 13, 2008, 1:56PM

More from Sharon Weinberger over at Wired regarding former Rep. Curt Weldon's ties to Russia.

We learned earlier this week that Weldon's under investigation in what is "an element of a broader U.S. Justice Department probe into what officials suspect are efforts by Russian-backed firms to gain influence or gather information in Washington."

Now Weinberger, who co-wrote a book about nuclear weapons, found this nugget in her notes. In 2006, Weldon told her that he met with Sergey Chemezov, a former KGB officer and then the head of Rosoboronexport, which handles Russian weapons exports.

"Chemezov offers--it's an amazing offer with Putin's support... there are countries in the Middle East that are approaching Russia to buy replacement weapons and spare parts. Chemezov is here to say, "We want to work with America to either establish either a joint company, or even an American company that would act as a front for weapons these nations want to buy. So American would not think we're going behind their back."

Weldon thought it was a great idea.

Defense Department

Russian Group Had $97M Deal With U.S. Missile Defense Agency

Andrew Tilghman | June 12, 2008, 4:39PM

The other day we told you about the Russian not-for-profit group that was giving undisclosed payments to the wife of former Rep. Curt Weldon's chief of staff.

Weldon, a Pennsylvania Republican who lost his reelection bid in 2006, had sought federal grants for International Exchange Group, which was run by a Russian with ties to the Kremlin. IEG was involved in "promoting U.S.-Russia business exchange, including nonproliferation issues."

IEG popped up again this week. Over at Wired Sharon Weinberger, who recently co-wrote a book about nuclear weapons, pointed out another connection the group had to the U.S. government.

IEG signed a deal with the U.S. military's Missile Defense Agency back in 2004 promising to provide "Russian radar data" for use with the U.S. missile defense's early warning system.

From Wired:

But the entire structure of IEG was suspect, and smacked of conflict of interest: why should the U.S. government have to pay an openly Kremlin-linked nonprofit in order to ensure government cooperation?

It didn't pass the smell test with upper-level decision makers at the Pentagon, who halted the 2004 deal at the last minute.

Weldon's connection here is unclear. But he has promoted the Russian group and he's also a longtime supporter for the Defense Missile Agency.

Weldon has been under federal investigation for a couple of years concerning his actions on behalf of a natural-gas company, Itera International Energy LLC, which has longstanding connections to alleged Russian organized-crime figures. Weldon just dumped his last $80,000 in campaign money into his legal defense fund.

And the Wall Street Journal reported this week, the probe of Weldon may be "a broader U.S. Justice Department probe into what officials suspect are efforts by Russian-backed firms to gain influence or gather information in Washington."