Iraq security deters western firms

[Barrett808]

Western firms are reluctant to play a role in the reconstruction of Iraq because of security concerns and a lack of clarity about the contracts on offer, a conference in London has heard.

Acknowledging disquiet among companies over the way sub-contracting work has been handed out by the US companies leading the work to rebuild Iraq, the United States is creating a new agency, under the aegis of the Pentagon, a US defence official told delegates.

The new agency, as yet unnamed, will be introduced at the beginning of November under the direction of retired admiral David Nash, said the Deputy Under Secretary of Defence for International Technology Security, John Shaw.

It will be charged with coordinating the distribution of sub-contracting work in Iraq, notably by US groups Bechtel and Halliburton, the main contractors in Iraq's reconstruction.

Shaw admitted there were "divergences" over the process between the US Agency for International Development (USAID) - which awarded the main contracts under the supervision of the State Department - and the Pentagon.

(more)

http://www.smh.com.au/articles/2003/10/14/1065917386035.html

[LittleApple81]

1. They don't want to loot? Or they want more safety to loot? n/t

[Spazito]

2. I wonder if the real truth is...

there is no more subcontracting work, Halliburton and Bechtel have already given them out to their buddies and this is just a coverup to hide that so they can say there were no other bids?

[cap]

3. on a cost plus contract....

you can keep billing for your costs... what's the problem?