On sitting ducks (and duck hunting)…

October 29, 2007

images4.jpegEarlier today, Vice President Dick Cheney headed up the road a piece to go duck hunting at the Clove Valley Rod & Gun Club in Union Vale. Meanwhile, late Friday, the company that Cheney used to head — Halliburton (HAL) — filed this 10-Q that had some interesting new details about various issues that Halliburton is facing.

Among the more interesting details in the latest Q is this additional line regarding the SEC and now Department of Justice’s ongoing investigations regarding the company’s operations in Nigeria and the lack of cooperation those agencies are receiving: “The government has expressed concern regarding the level of our cooperation.” Though the filing does say that the company has “produced documents to the SEC and the DOJ from the files of numerous officers and employees of Halliburton and KBR, including current and former executives of Halliburton and KBR”, Cheney is not mentioned specifically, so it’s impossible to know whether he is included. (Dow Jones reported on the addition of the DOJ on Friday). The filing also mentions what appears to be another grand jury investigation that is separate from an earlier one involving the company’s operations in Iran. There was also this new disclosure too:

The SEC and DOJ are also investigating and have issued subpoenas concerning TSKJ’s use of an immigration services provider, apparently managed by a Nigerian immigration official, to which approximately $1.8 million in payments in excess of costs of visas were allegedly made between approximately 1997 and the termination of the provider in December 2004 and our 2007 reporting of this matter to the government. We understand that TSKJ terminated the immigration services provider after a KBR employee discovered the issue.

Finally, there was the sharp increase in reserves during the quarter for what the company described as “environmental matters”, which climbed to $75 million, compared with $47 million in the previous quarter. Though the company provided few details in either last week’s earnings release or the Q on the spike, it does say that it has to do with “environmental exposure in North America”.

As for Cheney, he was last at Clove Valley back in 2001. Fingers crossed that this trip goes better than his now infamous expedition in February 2006. We’re kind of used to it being quiet up here in the country — the better to read SEC filings!

Leave a Reply

You must be logged in to post a comment.