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FBI Probing Halliburton's Iraq Oil Contract, Attorney Says

By Tony Capaccio

Oct. 28 (Bloomberg) -- Halliburton Co.'s contract with the U.S. military to repair Iraqi oilfields is under investigation by the Federal Bureau of Investigation, according to an attorney representing an Army Corps of Engineers whistleblower.

The FBI on Oct. 26 requested an interview with Bunnatine H. Greenhouse, the top contracts officer at the corps, according to her Washington-based attorney, Michael Kohn.

Greenhouse complained this week in a letter to U.S. Army Secretary Les Brownlee that Halliburton got special treatment in the award without competition of a contract to repair Iraqi oil fields, originally estimated to be worth over $7 billion.

``They were contacting her as a result of the letter,'' Kohn said in an interview with Bloomberg News. ``I'm expecting a another call any day'' to set up an interview and spell out protection under whistleblower laws that Greenhouse is seeking.

The March 2003 contract with Halliburton's Kellogg Brown and Root unit, covering repair and improvement of Iraqi oil infrastructure after the U.S. invasion, ended in January. Halliburton got $2.5 billion under the original contract and won one of two subsequent contracts awarded after competitive bids.

An FBI spokesman in Washington, Joe Parris, said he would not confirm or deny that the agency has begun an investigation, and he declined further comment.

Army Corps of Engineers spokeswoman Carol Sanders declined to comment on whether the FBI had contacted the agency. Greenhouse remains in her job, Sanders said.

To contact the reporter on this story: Jeffrey Tomich in Houston jtomich@bloomberg.net.

Last Updated: October 28, 2004 18:12 EDT