The U.S. government relies upon private civilian contracting firms to rebuild infrastructure and to provide goods and services in Iraq.  However, many of these contracts are rife with fraud and have cost the government and U.S. taxpayers millions of dollars.  Misconduct may include the following:

•    Failing to perform contract specifications, while making no effort to revise the contract or payments
•    Double-billing for goods and services; inflating or overcharging for goods or services
•    Charging for goods never delivered or services never performed
•    Charging for services performed by untrained or unqualified contractors
•    Agreeing with conspirators to rig the bidding process

Example

Eagle Global Logistics, hired by Halliburton subsidiary Kellogg, Brown & Root, allegedly overbilled the U.S. government for military cargo shipments in Iraq.  The company was accused of adding a “war risk surcharge” to shipments received from Dubai and the United Arab Emirates between 2003 and 2004.  To settle the claims, Kellogg, Brown & Root paid the government over $4 million in damages, with two whistleblowers receiving $800,000 each as a result.