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10 Great Moments in Corporate Malfeasance


9
Halliburton's Spoiled Food for Soldiers
Haliburton's $7.2 billion contract to feed U.S. soldiers in Iraq bought spoiled and outdated food.
Haliburton's $7.2 billion contract to feed U.S. soldiers in Iraq bought spoiled and outdated food.
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The American oil company Halliburton has been a major point of scrutiny since the Iraq War, when it moved into the government contract business. This move sent up red flags in a number of quarters, since the administration of President George W. Bush awarded the contracts. Bush's vice president, Dick Cheney, had served as CEO of Halliburton until he became Bush's running mate in 2000; Cheney was awarded a $34 million payout when he left his position for the White House [source: Politifact].

The company received billions from government contracts for services it provided to the military in Iraq. A 2005 study found that the company received about 52 percent of the $25.4 billion on contracted services in Iraq [source: Chatterjee]. Yet, news has emerged time and again the Halliburton overcharged the government for these services.

Accusations of perhaps the most cynical malfeasance came from the same study. Halliburton employees revealed the company's policy of delivering spoiled and out-of-date food to U.S. troops stationed in Iraq. In some cases, the food was spoiled enough that it would be refused at camp. In this case, said Halliburton delivery drivers, the food would be taken to the next camp until it was accepted [source: Chatterjee]. In 2004, the value of Halliburton's contract to supply U.S. troops in Iraq increased to $7.2 billion [source: Towns].