Halliburton defends Iraq contracts

THE head of Halliburton, the US corporation controversially awarded Iraq reconstruction projects without a formal tender, yesterday defended the process and said much of the work brought little profit.

Along with fellow American group Bechtel, Halliburton won Iraq contracts valued at up to £1.9bn, to the outrage of rival companies and governments. But Halliburton chief executive Dave Lesar said there had been no time for a bid process in the immediate aftermath of the conflict.

'Those who were fighting the war, and who now are trying to keep the peace, needed a support system right away. A lengthy bid process simply wasn't feasible,' Lesar wrote in the Wall Street Journal Europe.

The controversy has undermined the Bush administration in recent weeks. Democrats claimed the contracts went to politically well-connected companies.

Halliburton was appointed by the US defence department to provide civil oil and construction work, and supplies for the US army. Lesar said: 'The services for the military, in fact, produce a profit of only a few cents on the dollar - we do this work because it is important.'

However, in the summer, Halliburton attributed a big swing in profits to work in Iraq.