Just last week a National Security Council report said Iran was a decade away from acquiring a nuclear bomb. That time frame could arguably have been significantly longer if Halliburton, whose military unit just reported a 284 percent increase in its second quarter profits due to its Iraq reconstruction contracts, was not actively providing the Iranian government with the financial means to build a nuclear weapon.
Now comes word that Halliburton, which has a long history of flouting U.S. law by conducting business with countries the Bush administration said has ties to terrorism, was working with Cyrus Nasseri, the vice chairman of the board of directors of Oriental Oil Kish, one of Iran's largest private oil companies, on oil development projects in Tehran. Nasseri is also a key member of Iran's nuclear development team.
"Nasseri, a senior Iranian diplomat negotiating with Europe over Iran's controversial nuclear program is at the heart of deals with US energy companies to develop the country's oil industry", the Financial Times reported.
It's unclear whether Halliburton was privy to any of Iran's nuclear activites. A company spokesperson did not return numerous calls for comment. A White House spokesperson also did not return calls for comment.
Oriental Oil Kish dealings with Halliburton became public knowledge in January when the company announced that it had subcontracted parts of the South Pars natural gas drilling project to Halliburton Products and Services, a subsidiary of Dallas-based Halliburton that is registered in the Cayman Islands.
Following the announcement, Halliburton announced the South Pars gas field project in Tehran would be its last project in Iran. The BBC reported that Halliburton, which took in $30-$40 million from its Iranian operations in 2003, "was winding down its work due to a poor business environment."
Halliburton, under mounting pressure from lawmakers in Washington, D.C., pulled out of its deal with Nassri's company in May, but has done extensive work on other areas of the Iranian gas project and was still acting in an advisory capacity to Nasseri's company, two people who have knowledge of Halliburton's wor in Iran said.
In attempt to curtail other U.S. companies from engaging in business dealings with rogue nations, the Senate approved legislation July 26 that would penalize companies that continue to skirt U.S. law by setting up offshore subsidiaries as a way to legally conduct business in Libya, Iran and Syria, and avoid U.S. sanctions under International Emergency Economic Powers Act (IEEPA). The amendment, sponsored by Sen. Susan Collins, R-Maine, is part of the Senate Defense Authorization bill.
"It prevents U.S. corporations from creating a shell company somewhere else in order to do business with rogue, terror-sponsoring nations such as Syria and Iran," Collins said in a statement.
"The bottom line is that if a U.S. company is evading sanctions to do business with one of these countries, they are helping to prop up countries that support terrorism - most often aimed against America," she said.
The law currently doesn't prohibit foreign subsidiaries from conducting business with rogue nations provided that the subsidiaries are truly independent of the parent company.
But Halliburton's Cayman Island subsidiary never did fit that description.
Halliburton first started doing business in Iran as early as 1995, while Vice President Cheney was chief executive of the company and in possible violation of U.S. sanctions. According to a February 2001 report in the Wall Street Journal, "Halliburton Products & Services Ltd. works behind an unmarked door on the ninth floor of a new north Tehran tower block. A brochure declares that the company was registered in 1975 in the Cayman Islands, is based in the Persian Gulf sheikdom of Dubai and is "non-American." But, like the sign over the receptionist's head, the brochure bears the company's name and red emblem, and offers services from Halliburton units around the world." Moreover, mail sent to the company's offices in Tehran and the Cayman Islands is forwarded to the company's Dallas headquarters.
Not surprisingly, in a letter drafted by trade groups representing corporate executives vehemently objected to the amendment saying it would lead to further hatred and perhaps incite terrorist attacks on the U.S and "greatly strain relations with the United States' primary trading partners."
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