WASHINGTON (AP) - The Pentagon is withholding about $300 million in payments to Halliburton Co. because of possible overcharging for meals served to troops in Iraq and Kuwait.
Defense officials said Wednesday that starting next month, the government will begin withholding 15 percent of the money being paid to Halliburton under a multibillion-dollar contract to provide services such as food, housing, laundry and mail to American forces in Iraq.
Halliburton spokeswoman Wendy Hall said the company disagreed with the decision and hoped to persuade the Pentagon to drop its plans. But if the Defense Department does withhold the money, Halliburton in turn will withhold 15 percent of its payments to its subcontractors, she said.
The withholding won't affect Halliburton's bottom line, Hall said. Company executives told Wall Street analysts last week the company was taking in about $1 billion a month from its operations in Iraq. The company has set aside $141 million to settle the overcharging allegations and already has repaid about $36 million.
http://dailynews.att.net/cgi-bin/news?e=pri&dt=040318&cat=news&st=newsd81crg9g0&src=ap
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