NEWS ARCHIVE

Billions more for Bechtel - Bush's buddy in Baghdad

This correspondent used to have trouble spelling the word 'cronyism' but thanks to the Bush admin...

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The latest example of campaign donor support comes with the awarding of a $US1.8 billion Iraq reconstruction contract to a Joint Venture between the US companies Bechtel National Inc. and Parsons Corp.

On top of their existing contracts the two California firms will now be responsible for rebuilding Iraq's electricity and water systems, as well as roads and schools.

Bechtel already has a similar reconstruction contract with USAID, which could be worth up to $US680 million by the end of next year. Much like the highly controversial Halliburton fuel transport contract, the JV was awarded the role without going through a competitive bidding process.

Perhaps unsurprisingly Bechtel executives gave thousands of dollars to President George W Bush's 2000 election campaign, and two of the company's top executives serve on advisory boards for the White House and Pentagon.

Parsons is also currently involved in the war torn country overseeing the disposal of Iraqi munitions at three sites. The company should be familiar with the process as it is also in a similar deal with Bechtel in the US building facilities to dispose of the US Army's chemical weapons arsenal or WMDs.

Parsons also recently hired two former top Energy Department officials to help the company land Energy Department contracts as well as a retired Air Force major general to work in its defence contracts operation. It has always been said that it's not what you know, but who you know.

Meanwhile the US is continuing its ban on bids by companies from nations that opposed the Iraq war, such as France, Russia and Germany.

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