Thursday, August 28, 2008

Cheney's Ex-Company Charged with Human Trafficking

The AP reported (via Forbes) that an American defense contractor had been charged with human trafficking. No, this is not a rendition case. The piece stated:

Defense contractor KBR Inc. and a Jordanian subcontractor are accused of human trafficking in a federal lawsuit filed in Los Angeles. The suit alleges 12 Nepali men were being transported to Iraq against their will when they were killed in an insurgent attack.

The lawsuit filed Wednesday by an attack survivor and family members of victims claims subcontractor Daoud & Partners recruited the men in Nepal to work in hotels and restaurants in Jordan. The company allegedly seized their passports when they arrived in Jordan in 2004 and had them sent to Iraq to work on a U.S. air base.

Vice President Dick Cheney was CEO of Halliburton, the prior owner of KBR.

KBR was incorporated in Delaware in March 2006 as an indirect, wholly-owned subsidiary of Halliburton Company. In November 2006, we completed our initial public offering, in which we sold 32,016,000 shares of our common stock, representing approximately 19% of our total outstanding common stock, for aggregate net proceeds of $511 million. The remainder of our common stock was retained by Halliburton. On April 5, 2007, Halliburton completed its exchange offer of all of our outstanding stock and our separation from Halliburton was complete

How much KBR stock passed in the exchange (via his deferred executive compensation)?

Halliburton Stock Options Currently Held by Cheney (current to end of 2002): 100,000 shares at $54.5000 (vested), expire 12-03-07; 33,333 shares at $28.1250 (vested), expire 12-02-08; 300,000 shares at $39.5000 (vested), expire 12-02-09.

Note, the VP donated his stock option compensation to charity. But he did get a $20 million retirement package. Was any of that stock?

This information is from KBR's latest proxy statement:

KBR has adopted a "code of ethics," as defined in Item 406(b) of Regulation S-K. KBR's code of ethics, known as its Code of Business Conduct, applies to all directors, officers and employees of KBR, including its principal executive officer, principal financial officer, principal accounting officer and controller, and also applies to all employees of KBR and KBR's agents.

In addition, we have agreed that, for five years following our initial public offering, we will consistently implement and maintain the business practices and standards adopted by the Halliburton Board of Directors for us with respect to internal control procedures relating to the use of foreign agents. We may amend such procedures from time to time during the five-year period with Halliburton's prior consent, not to be unreasonably withheld.

A Cheney associated firm charged with human trafficking. How symbolic....