June 20, 2006 CONGRESSIONAL RECORD — SENATE S6105 the U.S. troop presence by year’s end to the I yield the floor. very distinguished military record of under 100,000, with most of the remaining f his own, and quite modest about it. But troops to return home by the end of 2007. at some point I would love to have a The eventual removal of coalition troops from Iraq streets will help the Iraqis, who CONCLUSION OF MORNING colloquy with the Senator on why now see foreign troops as occupiers rather BUSINESS Rhode Island—we are talking about than the liberators they were meant to be. It The PRESIDING OFFICER. Morning sovereignty and the formation of gov- will remove psychological barriers and the business is closed. ernments—about why did they hold out reason that many Iraqis joined the so-called those many years before ratifying the resistance in the first place. The removal of f Constitution? At some point, could the troops will also allow the Iraqi government to engage with some of our neighbors that NATIONAL DEFENSE AUTHORIZA- two of us have a colloquy about that? have to date been at the very least sympa- TION ACT FOR FISCAL YEAR 2007 Mr. REED. I would be happy to do that, in the future. thetic to the resistance because of what they The PRESIDING OFFICER. Under call the ‘‘coalition of occupation.’’ If the sec- I would like to highlight some of the the previous order, the Senate will re- tarian issue continues to cause conflict with aspects of the bill which I think are Iraq’s neighbors, this matter needs to be ad- sume consideration of S. 2766, which very important. I have had the privi- the clerk will report. dressed urgently and openly—not in the lege of working with Senator CORNYN guise of aversion to the presence of foreign The bill clerk read as follows: as the ranking member of the Emerg- troops. A bill (S. 2766), to authorize appropriations Moreover, the removal of foreign troops ing Threats Subcommittee. It has been for fiscal year 2007 for military activities of a real pleasure. He has conducted the will legitimize Iraq’s government in the eyes the Department of Defense, for military con- of its people. It has taken what some feel is struction, and for defense activities of the committee with great efficiency and an eternity to form a government of national Department of Energy, to prescribe per- great cooperation. The staff has been unity. This has not been an easy or enviable sonnel strengths for such fiscal year for the particularly helpful on a bipartisan task, but it represents a significant achieve- Armed Forces, and for other purposes. basis. ment, considering that many new ministers are working in partisan situations, often Pending: I am pleased to note that in the con- text of our deliberations, several im- with people with whom they share a history McCain amendment No. 4241, to name the of enmity and distrust. By its nature, the Act after John Warner, a Senator from Vir- portant measures were included in this government of national unity, because it is ginia. legislation. First, we have authorized working through consensus, could be per- Nelson of Florida/Menendez amendment an additional $400 million for science ceived to be weak. But, again, the drawdown No. 4265, to express the sense of Congress and technology programs. The original of foreign troops will strengthen our fledging that the Government of Iraq should not request sent by the Department of De- government to last the full four years it is grant amnesty to persons known to have at- fense was woefully inadequate. Science supposed to. tacked, killed, or wounded members of the While Iraq is trying to gain its independ- and technology is the key to our future Armed Forces of the United States. on the battlefield as we match the skill ence from the United States and the coali- McConnell amendment No. 4272, to com- tion, in terms of taking greater responsi- mend the Iraqi Government for affirming its and valor of our soldiers with the very bility for its actions, particularly in terms of positions of no amnesty for terrorists who best technology. We have to continue security, there are still some influential for- have attacked U.S. forces. this investment. I am pleased that our eign figures trying to spoon-feed our govern- Dorgan amendment No. 4292, to establish a legislation increases that item by $400 ment and take a very proactive role in many special committee of the Senate to inves- million. key decisions. Through this many provide tigate the awarding and carrying out of con- some benefits in the short term, in the long Also, the bill includes language to re- tracts to conduct activities in Afghanistan run it will only serve to make the Iraqi gov- quire a report to Congress on the test- and Iraq and to fight the war on terrorism. ernment a weaker one and eventually lead to ing policies and practices that should Kennedy amendment No. 4322, to amend a culture of dependency. Iraq has to grow out the Fair Labor Standards Act of 1938 to pro- be pursued with respect to rapid acqui- of the shadow of the United States and the vide for an increase in the Federal minimum sition programs, spiral development coalition, take responsibility for its own de- wage. programs, quick reaction fielding pro- cisions, learn from its own mistakes, and Frist amendment No. 4323 (to Amendment grams, and the testing for safety and find Iraqi solutions to Iraqi problems, with No. 4322), to amend title 18, United States the knowledge that our friends and allies are survivability of deployed equipment. Code, to prohibit taking minors across State standing by with support and help should we One of the weaknesses, I believe, with need it. lines in circumvention of laws requiring the the present approach of the Depart- involvement of parents in abortion decisions. Mr. LEVIN. Mr. President, I ask ment of Defense is a failure to ade- unanimous consent that after Senator The PRESIDING OFFICER. Under quately test and evaluate, and I think the previous order, the Senator from REED is recognized—the chairman and I that failure has to be corrected and have talked about this—at that point, Rhode Island, Mr. REED, shall be recog- this report will, I hope, put attention the Dorgan amendment be the matter nized to speak for up to 20 minutes. on this issue and lead to positive re- before the Senate. I believe that the Mr. REED. Mr. President, I rise this sults. Senator from Virginia and I have morning to discuss the fiscal year 2007 The legislation also urges the De- agreed that Senator DORGAN would be Defense authorization bill. I am glad it partment of Defense to identify and recognized for 10 minutes, to be fol- is on the floor. It is very important leg- nominate an individual to serve as the lowed then by the chairman for 5 min- islation, and it is arriving in a timely Director of Operational Test and Eval- utes, and the intention then would be manner where we can dispose of it uation. This position has been vacant to proceed to a rollcall vote. along with the other body and hope- since January 2005. It is a critical posi- Mr. WARNER. Mr. President, we are fully conclude in the next few weeks tion. This individual is the key inde- fully in concurrence as managers, but I with a finalized Defense authorization pendent personality in the Department would like to have the benefit of our bill. of Defense to look at the testing and leaders and the respective staff work- I would also note that this is Senator evaluation of new equipment. Without ing up a unanimous consent agreement WARNER’s last bill as chairman of the this position, the testing emphasis is precisely outlining that. Then, as I fur- Senate Armed Services Committee, woefully inadequate in the Department ther discussed with my colleague from and I personally want to commend him of Defense. Michigan, we had hopes that the mat- and thank him for his leadership, not As we put new systems into the mili- ter raised by the Senator from Florida, only as the chairman of this com- tary, we have to ensure that these sys- Mr. NELSON, in which he had an amend- mittee, but as a young sailor, a young tems are adequately tested. Without an ment relating to the issue of amnesty, marine, and a more mature Secretary individual with that responsibility and be addressed together with the side-by- of the Navy, and now a mature Member that position and posture within the side amendment by the Senator from of the United States Senate. So thank Department of Defense, we are not pro- Kentucky, Mr. MCCONNELL. So I hope you, Senator, for your leadership and viding the appropriate personality and that while hearing from our colleague friendship. mechanism to do the job. from Rhode Island addressing the Sen- Mr. WARNER. Mr. President, I thank The bill also establishes the Joint ate, we can have a formalized UC my colleague from Rhode Island. I ap- Technology Office to coordinate all agreement. preciate his remarks, a Senator with a DOD hypersonics research programs in

VerDate Aug 31 2005 05:27 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S20JN6.REC S20JN6 mmaher on PROD1PC69 with CONG-REC-ONLINE S6106 CONGRESSIONAL RECORD — SENATE June 20, 2006 conjunction with NASA. The new office budget. Our legislation would provide Let me now turn to an issue of in- reflects an appreciation of the impor- $100 million to do that and allow our creased importance in the last few days tant role that these technologies can special operators to continue to en- and that is missile defense. We are all play in advanced air platforms, missile hance their technology and their pro- anxiously observing what is going on in systems, and space systems. The com- grams. North Korea—the intelligence sug- mittee’s provision is an effort to ensure The increase will provide, I think, gesting that the North Koreans are that millions of dollars being invested also, support for our Weapons of Mass preparing to launch a long-range bal- by the services and by DARPA in Destruction Civil Support Teams. listic missile. hypersonics are optimized and coordi- These are military teams that are or- This bill contains language that I nated to enable this maturing set of ganized in case of a weapons of mass think recognizes a need to continue to technologies to reach operational capa- destruction incident in the United develop a missile defense system and to bilities at the highest possible rate and States. They are critical. The original do so in a way that can assure its effec- at the earliest possible time. 32 teams played a key role. This would tiveness. The bill would authorize addi- The bill also extends the authority allow them to upgrade their equip- tional funding for systems that we for DOD to run technology competi- ment. know are working and are extremely tions and awards cash prices to win- The bill also authorizes about $70 valuable, including the Aegis BMD sys- ners. This is a provision that DARPA million to fund two of Northern Com- tem and the Patriot/PAC–3 system. I uses very effectively. mand’s highest unfunded priorities. In- note the Patriot system is our only The bill also authorizes more than cluded among these priorities are system that has actually intercepted a $30 million in increases for research interoperable communications to fa- hostile missile, and that additional that supports defense manufacturing cilitate the support of civilian authori- support for this system is more than technology. A growing concern in the ties. This is an obvious need after Hur- justified. I also note that the Patriot United States, in both the defense and ricane Katrina. When we go back—I am system was rigorously tested and was commercial sector, is whether or not sure my colleagues are in the same po- subject to operational testing before it we have the capability to manufacture sition—to our home States we hear a was fully deployed. what we invent. This money will help persistent cry from fire and police offi- The largest single missile defense us enhance our manufacturing abilities cials that they need interoperable com- funding increase which is authorized by throughout the United States. munications to talk amongst them- this bill is $115 million for additional There is another area of the bill that selves and to talk to other levels of integrated flight tests for the Ground- I think is very important and that is command. based Mid-course Defense system, the the area that helps us protect this The bill also creates a senior execu- GMD. I think it is very important to country from weapons of mass destruc- tive position within the Office of the focus in on operational testing of this tion. First, the Cooperative Threat Re- Assistant Secretary for Defense for system. One of the shortcomings of the duction Program of the Department of Special Operations and Low-Intensity whole program for developing our mis- Defense is fully funded with a budget Conflict to provide management over- sile defense system has been a rush, in request of $372 million. The Coopera- sight for SOCOM’s acquisition pro- many cases, to failure, not taking the tive Threat Reduction Program is one grams. One of the lacking elements in steps to test the system or not design- of the leading nonproliferation pro- SOCOM’s organization is an acquisition ing tests that are operationally signifi- grams. It allows our Government to co- specialist. This bill would put in a per- cant. In that respect, we have spent a operate with other governments, prin- son with those skills, so they can fa- lot of money but we have yet, I think, cipally those of the former Soviet cilitate the acquisition and develop- to fully and effectively deploy the Union, to reduce the availability and ment of new technology for our Special ground-based mid-course system. supply of the fissile material and po- Operations Command. We have to recognize that after three tential access to nuclear devices. The bill also includes an authoriza- successive intercept flight test fail- Also, the nonproliferation programs tion for the Department of Defense to ures, the Missile Defense Agency is at the Department of Energy are fully use counterdrug funds to support U.S. taking some steps which I think are funded at $1.7 billion. This funding is assistance to the unified counterdrug/ encouraging. They created an Inde- critical. One of the most obvious counterterrorism military campaign in pendent Review Team and a Mission threats and the most grievous threats Colombia. Last April, I was in Colom- Readiness Task Force to analyze these to face this country is the existence of bia and I had the opportunity to meet failures and recommend improvements nuclear weapons, particularly if they with President Uribes. I was encour- to the GMD program. fall in the hands of terrorists. One very aged by what he has done and what the Again, one of the persistent criti- effective way to prevent this potential people of Colombia have done. I also cisms I had was that the system was apocalypse is to ensure these weapons visited with our military personnel and rushing pell-mell forward without stop- are fully under the control of a credible civilians working to help the Colom- ping to evaluate the mistakes that responsible party. In fact, in many bian military personnel who have been have been made and then planning for cases we are destroying some of this working to fight narcoterrorism and a thorough and exhaustive system of material to prevent it from ever being strengthen democratic governance in tests. Therefore, the effort was just to used again. Colombia, and I was extremely im- put something in the ground, not to en- The bill also includes an important pressed with what they have done since sure that missile system would work waiver for the President with respect my last visit in 2000. I believe, as we adequately. to the conditions that Russia must support the Colombians in their ef- MRTF, the Mission Readiness Task meet for chemical weapons destruction forts, we will make a significant con- Force, recommended that four ground- programs. It is important to continue tribution to stability in that region. based interceptors be diverted from to have these programs go forward. Finally, with respect to our efforts planned operational deployment—es- This waiver gives the President flexi- on the Emerging Threat Sub- sentially sitting in the ground being bility to continue these efforts. committee, I note the bill includes au- described as operational, but frankly I In the areas of combating terrorism thorization for incentive clauses in don’t know anyone who would give and homeland defense, the bill author- some of our chemical demilitarization that a high probability of success—to izes funding increases of about $150 contracts. This authority is intended using these missiles for ground tests. I million. Approximately $100 million of to provide a more efficient way to close think that is a step forward in terms of these funds are being used to fund the some of our chemical weapons facili- development the system. top eight unfunded requirements of the ties and to meet international dead- These recommendations were accept- Special Operations Command. We all lines. ed by the Missile Defense Agency and understand each of the components of All of these efforts were the result of the Defense Department. Again, I the Department of Defense submit the close cooperation of Senator think a recognition of a new prag- their requests. These eight elements CORNYN and the staff with respect to matism and realism on the part of the were not funded under the prevailing the Emerging Threats Subcommittee. Missile Defense Agency, something

VerDate Aug 31 2005 05:27 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S20JN6.REC S20JN6 mmaher on PROD1PC69 with CONG-REC-ONLINE June 20, 2006 CONGRESSIONAL RECORD — SENATE S6107 that is more than overdue. We need need approximately $13.5 billion each Right now the Navy is currently pro- more testing to ensure the GMD sys- year for the next decade to recapitalize curing one Virginia class attack sub- tem will work, and I think the legisla- the fleet. However, the President’s marine per year, and a ninth is in the tion we have before us will signal and budget request only includes 7 ships in budget for this year. However, under encourage such testing. fiscal year 2007 versus the 11 that the the original plan drawn up by the Navy The bill would also include a provi- Chief needs to maintain the 313-ship in 2003, production of two boats per sion that would require the Depart- fleet. Seven ships in fiscal year 2008. In year was supposed to begin in fiscal ment to submit to Congress each test 2009 the suggestion is they move up to year 2007. Now the procurement of two and evaluation plan approved by the nine ships. But those plans have been per year has been pushed back to fiscal Director of Operational Tests and Eval- delayed before. year 2012. uation under Section 234 of last year’s This shipbuilding level simply cannot If the Navy is able to implement its National Defense Authorization Act. sustain the fleet. My greatest concern plan and begin building two attack Again, this provision is designed to is with respect to the construction submarines per year in fiscal year 2012, help improve testing and to show the level of submarines. While many be- the attack submarine fleet will still emphasis that the Congress places on lieve that the need for submarines has drop below 40 before it begins to in- this testing. diminished with the end of the Cold crease again. If the 2-per-year procure- Finally, the bill includes a provision War, the demand for these unique as- ment keeps getting pushed off to the that would extend the requirement to sets has never been greater. left—it has already happened 10 times have the GAO assess the missile de- Last week I was with Senator DODD where it has been pushed back—the fense program. The GAO plays a very and Senator INOUYE for the christening submarine force would drop as low as valuable role as an outside objective of the USS Hawaii, our newest Virginia 28. observer on the progress of missile de- Class attack submarine at Groton, CT. I think we all agree that 28 is a num- fense. Admiral Roughhead, Commander of the ber that cannot be justified in terms of We have to invest in a missile defense Pacific Fleet, pointed out submarines the demand and in terms of this effort. system, but we have to do it wisely. We are his most demanded asset. They are We have to do quite a bit to move up have already seen where the effect of the one ship that is constantly re- the construction of two submarines per other budget priorities, principally quested by commanders throughout year. Iraq, has even caused the administra- the Pacific to do the tasks that are First, the report language accom- tion to move money away from their necessary to defend the Nation. panying this bill states: ‘‘The Com- original plans in missile defense. I be- This is true in our global war on ter- mittee does not understand the con- lieve we cannot afford to waste money rorism as we need the ability for tinuing delays in increasing the [sub- in this regard. We have to invest it stealthy insertion of special operations marine] construction rate’’ and directs wisely. Part of that wise investment troops. We need to be able to recover the Secretary of the Navy to submit a means having an adequate, thorough, these troops, we need to have the ca- detailed plan for lowering costs and de- exhaustive operational testing program pacity to strike with precision-guided fining goals and benchmarks for the to make steady progress, rather than Tomahawk cruise missiles. All of these Virginia class production program. I to rush to failure. are capabilities of the submarine fleet. believe this language will help compel I would like to turn to another topic Back in March of 2004, Admiral Bow- which is of concern to myself, and that the Navy and the industry to redouble man, who was then the Director of the their efforts to increase the construc- is the shipbuilding program. Since 2001, Navy’s Nuclear Propulsion Program, most of the focus of the Department of tion rate—and that is vitally impor- suggested to me that the Navy was Defense and Congress, indeed, of the tant. only able to meet about 65 percent of Nation, has been on our land forces, Second, I am pleased to know that the combatant commanders’ submarine the Army and Marines. They are en- this legislation includes $65 million for requirements with the current fleet of gaged in combat in Afghanistan and R&D for the Virginia class submarines. 54 boats. In 2003, Vice Admiral Iraq and doing a magnificent job. They This R&D is I think critical not only Grossenbacher, then commander of the are bearing the burden of a very dif- to improve the capabilities of these Naval Submarine Forces, estimated we ficult combat situation. ships but also to continue to engage in However, our Navy is still a vital ele- needed 70 submarines to meet the re- the design force which is part of the ment in our national defense. Its im- quest of all of the commanders. These human capital in our submarine indus- portance will continue to loom signifi- are requests that will simply not be trial base. cant in the future. The CNO has stated met if we drop our submarine fleet Also, I note that the bill includes $10 that he needs $13.5 billion each year for below certain limits. million for funding to begin design at least the next decade to recapitalize In addition, we understand that work on the successor to the Ohio class the fleet. With this funding, the Navy China is developing a very robust sub- ballistic submarine. This design work must also build approximately 11 ships marine fleet. Today, China’s submarine is essential to continue our ability to per year to maintain a 313-ship fleet. fleet is estimated at a number of ap- produce a follow-on generation of at- Mr. WARNER. Mr. President, will the proximately 60 boats. In 2004 and 2005, tack submarines but also ballistic sub- Senator kindly yield for me to make a 12 new submarines joined the Chinese marines. unanimous consent request so Senators fleet. New nuclear-missile-attack boats I think this is absolutely critical. can arrange their schedules? are coming on line, and China has one Let me turn to another point with re- Mr. REED. I yield to the Senator of the largest modern diesel submarine spect to our Army; that is, end from Virginia and will then regain my fleets in the world. Clearly, there is a strength. time. need to prudently react to the growing I am pleased to see that this bill au- Mr. WARNER. This is a cleared unan- underwater prowess of China. thorizes an Active-Duty Army end imous consent request on both sides. I Presently, the U.S. Navy has 282 strength of 512,400, which is 30,000 over ask unanimous consent that at 11:15 ships, including 54 attack submarines. the President’s fiscal year 2007 budget the Senate proceed to a vote in rela- In the fiscal year 2007 long-range plan request. tion to the Dorgan amendment No. 4292 for construction of naval vessels, the The act also authorizes an Active- and that no amendments be in order Navy expressed the intent to maintain Duty Marine Corps of 180,000, which is prior to the vote. I further ask unani- 313, but only 48 attack submarines. Re- 5,000 over the President’s budget re- mous consent that Senator DORGAN be call recently there were requirements quest. recognized to speak for up to 10 min- for up to 70 submarines—at least dis- I think it is important to maintain utes between now and the time before cussion of 70 submarines—or 54 sub- the end strength of the Army. the vote. marines; 48 attack submarines are cur- I think it is a result of the efforts of The PRESIDING OFFICER. Without rently in the plan. The Navy is in dan- Senators LOTT and TALENT and myself objection, it is so ordered. ger of not even being able to put to sea on the budget resolution, where we ac- Mr. REED. As I stated, the Chief of 48 attack submarines at current build tually moved $3.7 billion to accomplish Naval Operations indicated he would rate. this.

VerDate Aug 31 2005 05:27 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S20JN6.REC S20JN6 mmaher on PROD1PC69 with CONG-REC-ONLINE S6108 CONGRESSIONAL RECORD — SENATE June 20, 2006 Let me make one final point, if I moted for being honest. She was al- towels and double the price so you can may. ways given the best recommendations, put the logo of the contractor on it be- The Army end strength is a critical the highest performance evaluations, cause it is a cost-plus contract, that re- issue. I think we have to note, at this and when they saw that the ‘‘old boy’’ lates to $100 million contracts, and it time but also at a later date continue network decided to give big sole-source relates, in my judgment, to billions of to note, that recruiting is becoming a contracts, no-bid contracts and do it in waste, fraud, and abuse. critical issue for the U.S. Army. Ac- a way that violated procurement rules, Regrettably, the Congress doesn’t cording to the information I have, the she spoke out. ‘‘The most blatant and care enough. U.S. Army, in the first three-quarters improper contract abuse’’ she has ever I suggest we remedy this by creating of the year, has recruited to a level of seen. a Truman-type committee. It worked, 40,000. That means in the final quarter Let me describe one contract—the it was bipartisan, and it began to root the Army is going to have to recruit Custer Battles contract. Two guys— out the waste, fraud, and abuse that is 40,000 soldiers to meet their goals. That Custer Battles—show up in Iraq. They so prevalent. is much higher than they have ever know there is a lot of money. The I am not going to go through the done in the last few years. American taxpayers are funding not whole list again. But let me describe it. We have a recruiting problem that is only reconstruction of Iraq but also If you are in the right place of the beginning to emerge. funding Army contracts. Two guys country of Iraq, you can stumble onto I will devote additional time on this show up in Iraq with nothing. And $100 50,000 pounds of nails, 25 tons of nails, subject at a later time. million later, they got $100 million of lying in the sand. Why? Because some- I yield the floor. the taxpayers’ money for contracts. body ordered the wrong size nails. So The PRESIDING OFFICER. The Sen- The first contract was to provide secu- you throw them out in the sand. ator from Virginia is recognized. rity at the Baghdad Airport. There is a Doesn’t matter, the American taxpayer Mr. WARNER. Mr. President, I ask criminal inquiry as a result of that. is going to pay for that. unanimous consent that the Senator Here is what Bagdad Airport security Or you can see a brandnew $75,000 from North Dakota be recognized for 10 said about this company, Custer Bat- truck that was set on fire because it minutes, after which time the Senator tles—Mr. Custer and Mr. Battles. had a flat tire, and they run it off the from Virginia be recognized for 5 min- Custer Battles have shown themselves to road. They didn’t have the capability utes, and the Senate then vote imme- be unresponsive, uncooperative, incom- to fix it and just left the truck. Doesn’t diately thereafter. petent, deceitful, manipulative war profit- matter, the American taxpayer is The PRESIDING OFFICER. Is there eers. Other than that, they are swell fellows. going to pay the bill. objection? Without objection, it is so They received 100 million in Amer- I think this is unbelievable. We have ordered. ican taxpayer dollars. spent hundreds of billions of dollars at The Senator from North Dakota. By the way, they took the forklift this point. Mr. DORGAN. Mr. President, I thank trucks off the Baghdad Airport and put I understand that our responsibility the Senator from Virginia for his cour- them in a warehouse. They painted is to do everything we should do, and tesy. them blue and then sold them back to must do, to support the troops who are This is a vote that we had before in the Coalition Provisional Authority— fighting in Iraq. the Senate. It is a vote on the estab- forklift trucks which didn’t belong to We cannot send American men and lishment of a type of committee called them. There are now criminal pro- women abroad wearing our country’s a Truman Committee. The Truman ceedings about this contract. But this uniform and not do everything that is Committee was established in the early is the tip of the iceberg. humanly possible to provide all of their 1940s to try to root out waste, fraud, Mr. President, I ask unanimous con- needs, equipment needs, weapons and abuse in military contracting. sent to show an item on the floor of the needs, and so on. I understand that. That was done when there was a Demo- Senate. That is a responsibility we have. I be- crat in the White House, a Democrat- The PRESIDING OFFICER. Without lieve the chairman of this committee ically controlled Senate, and a Demo- objection, it is so ordered. and the ranking member of this com- cratic Senator named Harry Truman. Mr. DORGAN. Mr. President, a man mittee have done a great job. I am im- He decided there ought to be a special named Henry Bunting worked for KBR, pressed with that. investigation of waste, fraud, and a subsidiary of Halliburton Corpora- The one area where all of us have abuse with respect to military con- tion, in the area of Kuwait where failed in this Congress, however, is tracting. They established a bipartisan Henry Bunting was in charge of pro- oversight. We have not done the over- committee to do that. They found a curement. He had to buy things. sight. I think part of it is because we massive amount of waste, fraud, and Let me show the Senate what he have one-party rule in this town—the abuse. bought. He brought this to a hearing White House and the House and Senate. I think it is clear that perhaps the we held. This is a hand towel. He was Nobody wants to embarrass anybody. most significant amount of waste, charged, on behalf of Halliburton’s But the fact is there is such massive fraud, and abuse that has ever occurred KBR subsidiary, to buy hand towels. He amount of money that is going out the in this country is occurring right now. would order a hand towel for the Amer- door in support of these contracts— I think the American taxpayers are ican troops at a certain price, but his sole-source, no-bid contracts that have being fleeced. I don’t think the Con- company said: Don’t do that. We want promoted waste. And nobody wants to gress is doing nearly enough about it. you to have a hand towel that has the take a second look at it. Nobody wants Let me go through a couple of charts embroidered logo on it, the name of our to see what is going on. that I have shown before on the floor of company. So double the price to the There are whistleblowers coming for- the Senate. This is from the highest American taxpayer for hand towels for ward saying this money is being spent. ranking procurement official in the the troops. So you have KBR embroi- It is being spent in an unbelievable Corps of Engineers, which does all the dered on the hand towel. way. procurement for the Department of De- He says: Why should we do that? It This is a slightly different picture. fense. She lost her job. She was de- doesn’t matter. It is cost-plus. The By the way, this is $2 million in $100 moted for being honest. American taxpayer is paying the bill. bills wrapped in Saran Wrap. This She said: Don’t worry about the cost. money actually belongs to the Iraqi I can unequivocally state that the abuse Same guy, $7,500 a month for an SUV; people that was spent by us in some- related to the contracts awarded to KBR rep- $45, $43 for a case of Coca Cola. He said: thing called the Coalition Provisional resents the most blatant and improper con- Don’t worry, be happy. The taxpayer is Authority. That was our responsibility tract abuse I have witnessed during the going to pay for all of this. Don’t worry to spend this appropriately. This course of my professional career. about the cost. money went to Custer Battles and is This from the top civilian con- Yes, I know this towel is one small the subject of a criminal inquiry. This tracting official in our Government at issue. But when you buy thousands and $2 million wrapped in Saran Wrap in the Corps of Engineers. She is being de- thousands and tens of thousands of $100 bills was a part of a substantial

VerDate Aug 31 2005 05:27 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S20JN6.REC S20JN6 mmaher on PROD1PC69 with CONG-REC-ONLINE June 20, 2006 CONGRESSIONAL RECORD — SENATE S6109 stash of cash in the basement of a Mr. President, I wish to say to our and there is a huge amount of waste building where they were standing. colleague from North Dakota that he and abuse. This particular fellow came and tes- feels very strongly about this issue. I agree with my good friend from Vir- tified. He said: We used to throw these That comes through in the debate on ginia we do have committees that around as footballs. We wrapped up $100 this issue that we have had now for 3 could look into this matter and could bills in Saran Wrap and threw them as days, on and off. focus on this matter. The agendas of footballs in the office because the mes- But I bring to the attention of my those committees are left basically to sage in this office was this: colleagues that three times the Senate the chairmen of those committees. If You bring a bag because we pay in has addressed this issue and has re- the chairmen of those committees cash. Bring a sack. If you want some jected it. It is not a rejection in the choose to focus their energies in other money, bring a sack, we pay in cash. sense that the Senator doesn’t raise places—and I don’t quarrel with the The stories are unbelievable. points that should be addressed to the The American taxpayer is going to places they look—it does not mean the Senate. But there is a clear record that Senate should not express its opinion pay to air condition a building. It went the Senate is addressing these issues. to a subcontractor, to another subcon- on the need to focus on these abuses, The Committee on Armed Services had these excesses, this expenditure of bil- tractor, and then to another subcon- a number of hearings. The Committee tractor, and pretty soon we pay the lions of dollars on no-bid contracts. on Foreign Relations had a number of bill. The American taxpayer paid the Therefore, I support the Dorgan hearings. And most importantly, the bill, and that building now has a ceil- amendment. Senate is structured whereby issues of ing fan—not an air conditioner. Mr. DORGAN. Might I ask consent to What is going on is unbelievable. Yet this type are within the jurisdiction of point out to my colleagues that Sen- the Committee on Homeland Security nobody seems to care very much. No- ator HARKIN, Senator DURBIN, and Sen- and Governmental Affairs. body seems to be willing to do any- ator CLINTON are cosponsors. I did not In that committee, and it has been thing. I suggest, given the unprece- mention that. dented amount of waste, fraud, and for many years, there is a sub- committee entitled ‘‘The Permanent The PRESIDING OFFICER. Without abuse, that now is the time for us to objection, it is so ordered. decide we are going to take action. We Subcommittee on Investigation’’ with subpoena power. In the colloquy we had Under the previous order, a vote now will create a Truman Committee, bi- occurs on the Dorgan amendment on partisan, and sink our teeth into this on the Senator’s bill on Thursday, my distinguished colleague, Senator which the yeas and nays have been or- and investigate on behalf of the Amer- dered. ican taxpayer—investigate and expose LEVIN, and I, both commented, since we The clerk will call the roll. the waste, fraud, and abuse. serve on that committee—he serves on The fact is we turned down, regret- the Special Permanent Subcommittee The legislative clerk called the roll. tably, a bill which I offered previously on Investigations—that this is a mat- Mr. MCCONNELL. The following Sen- that would have prevented the no-bid, ter we should take up with the chair- ators were necessarily absent: the Sen- sole-source, huge contracts going to man and ranking member of the Home- ator from New Mexico (Mr. DOMENICI) just a couple of companies. That is one land Security and Governmental Af- and the Senator from Alabama (Mr. way to solve this problem. We should fairs Committee. SHELBY). have accepted that. But notwith- Before the Senate tries to restruc- Mr. DURBIN. I announce that the standing the decision by the Senate to ture the framework of how it performs Senator from Vermont (Mr. JEFFORDS) turn down that amendment, this its work, we should focus on what is and the Senator from West Virginia amendment stands on its own. and what has been that framework for (Mr. ROCKEFELLER) are necessarily ab- Are we going to decide that when the these many years now. It is for that sent. highest civilian procurement official in reason I suggest strongly this amend- The PRESIDING OFFICER (Mr. the Corps of Engineers responsible for ment not be accepted. It would, in ef- BURR). Are there any other Senators in all these contracts says that she can fect, be overruling what we are doing the Chamber desiring to vote? on the Permanent Subcommittee. unequivocally state that the abuse re- The result was announced—yeas 44, Second, Congress should be stepping lated to contracts awarded represents nays 52, as follows: the most blatant and improper con- into the role that is now being per- [Rollcall Vote No. 176 Leg.] tract abuse she has witnessed during formed by inspector generals, being the course of her professional career, performed by the General Account- YEAS—44 are we going to decide that is serious? ability Office and, indeed, an inspector Akaka Durbin Menendez We are going to do something about it? general specially designated by the Baucus Feingold Mikulski Congress and the Secretary of Defense Bayh Feinstein Murray I know people will say we have done Biden Harkin Nelson (FL) this or that. The fact is we haven’t for Iraq and other nations. Bingaman Inouye Nelson (NE) scratched the surface—not a bit. With that, I will not move to table Boxer Johnson Obama It is time for the Senate to ask itself this because I feel very strongly the Byrd Kennedy Pryor Cantwell Kerry Reed whether it is serious about oversight Senate should address it in the same Carper Kohl Reid and doing the job. manner we have addressed it on pre- Chafee Landrieu Salazar Clinton Lautenberg I am not standing here trying to pull vious occasions three times and re- Sarbanes the ground out from under this com- jected it. Conrad Leahy Dayton Levin Schumer mittee—or any committee. I am saying I ask for the yeas and nays. Dodd Lieberman Stabenow we have never spent this much money The PRESIDING OFFICER (Mr. Dorgan Lincoln Wyden SUNUNU). Is there a sufficient second? so quickly, never given the kind of NAYS—52 sole-source, no-bid contracts that we There is a sufficient second. The yeas and nays were ordered. Alexander DeWine McConnell have offered. We have never shoved Allard Dole Murkowski money out the door as quickly as we Under the previous order a vote is Allen Ensign Roberts have for procurement and in support of now to occur in relation to the amend- Bennett Enzi Santorum contracts for the troops. ment. Bond Frist Sessions Mr. LEVIN. I ask unanimous consent Brownback Graham Smith Again, let me show this towel as a Bunning Grassley I be allowed 1 minute to respond to my Snowe small hand-towel symbol of a massive Burns Gregg Specter Burr Hagel amount of waste, fraud, and abuse that good friend’s comments. Stevens Chambliss Hatch I believe we ought to correct, and we The PRESIDING OFFICER. Without Sununu Coburn Hutchison Talent ought to begin today by approving my objection, it is so ordered. Cochran Inhofe amendment. Mr. LEVIN. Mr. President, what we Coleman Isakson Thomas The PRESIDING OFFICER. The Sen- are dealing with is a historic use of no- Collins Kyl Thune Vitter bid contracts, where billions of dollars Cornyn Lott ator from Virginia is recognized. Craig Lugar Voinovich Mr. WARNER. Mr. President, I thank have been spent. There is good evidence Crapo Martinez Warner the Presiding Officer. they have been misspent in many ways, DeMint McCain

VerDate Aug 31 2005 05:27 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S20JN6.REC S20JN6 mmaher on PROD1PC69 with CONG-REC-ONLINE S6110 CONGRESSIONAL RECORD — SENATE June 20, 2006 NOT VOTING—4 menting rampant corruption and prof- (2) history records that governments de- Domenici Rockefeller iteering on the part of some defense rived of free elections should not grant am- Jeffords Shelby contractors, as well as lax oversight by nesty to those who have committed war crimes or terrorists acts, and; The amendment (No. 4292) was re- governmental officials. A major reason (3) the United States should continue with jected. this is continuing largely unchecked is the historic tradition of diplomatically, eco- (Disturbance in the Visitors’ Gal- that apparently the Department of nomically, and in a humanitarian manner leries.) Justice has been delaying whistle- assisting nations and the people whom have Mr. LEVIN. I move to reconsider the blower lawsuits brought under the fought once a conflict is concluded. vote, and I move to lay that motion on False Claims Act, and DOJ is not pur- Mr. WARNER. To be followed by a the table. suing these suits aggressively. So I vote on the Nelson amendment No. The motion to lay on the table was filed an amendment designed to break 4265, and that no amendments be in agreed to. this logjam by requiring the Depart- order to the amendments prior to the Mr. LEVIN. I suggest the absence of ment of Justice to report on a semi- votes, with the modification that is at a quorum. annual basis, every 6 months—— the desk having now been acted upon. The PRESIDING OFFICER. The Mr. WARNER. Mr. President, might I The PRESIDING OFFICER. Is there clerk will call the roll. ask the Senator to yield for the pur- objection? The legislative clerk proceeded to pose of a unanimous consent request? Mr. LEVIN. Reserving the right to call the roll. Mr. HARKIN. Certainly. object, and I do not intend to object, Mr. WARNER. Mr. President, I ask Mr. WARNER. Mr. President, I thank did I hear that they have an oppor- unanimous consent that the order for the Senator from Iowa. I am prepared tunity to speak on their amendments? the quorum call be rescinded. to restate the unanimous consent re- Mr. WARNER. That is correct, 30 The PRESIDING OFFICER. Without quest. minutes of debate equally divided. objection, it is so ordered. I ask unanimous consent that at 2:15 Mr. LEVIN. I missed that. Mr. WARNER. Mr. President, the p.m., the Senate proceed to 30 minutes The PRESIDING OFFICER. Without managers are working with our respec- of debate, equally divided in the usual objection, it is so ordered. tive leaders on the remainder of the Mr. WARNER. Mr. President, to ac- form, relative to the McConnell and schedule for the next few hours, but in commodate the Senate, would we not Nelson amendments; provided further, the meantime I understand our distin- at 12:30 p.m. go into recess? Perhaps I that following the use or yielding back guished Senator from Iowa wishes to can ask unanimous consent that at the of time, the Senate proceed to a vote speak. I certainly have no objection. conclusion—how much time does the on the McConnell amendment No. 4272, I ask unanimous consent that at 2:15 Senator wish to speak? as modified— p.m., the Senate proceed to 30 minutes Mr. HARKIN. Mr. President, 15 min- The modification is at the desk. Did of debate equally divided in the usual utes. the Chair rule on the modification? form relative to the McConnell and Mr. WARNER. I ask unanimous con- Nelson amendments; provided further, AMENDMENT NO. 4272, AS MODIFIED sent that at the conclusion of the re- that following the use or yielding back The PRESIDING OFFICER. Without marks of the Senator of Iowa, the Sen- of time, the Senate proceed to a vote in objection, the amendment is so modi- ate stand in recess until the hour of relation to the McConnell amendment fied. 2:15 p.m. No. 4272, as modified, to be followed by The amendment (No. 4272), as modi- The PRESIDING OFFICER. Without a vote in relation to the Nelson amend- fied, is as follows: objection, it is so ordered. The Senator ment No. 4265, and that no amendments Sec.lSENSE OF THE CONGRESS COMMENDING from Iowa. be in order to the amendments prior to THE GOVERNMENT OF IRAQ FOR AF- Mr. HARKIN. Mr. President, I thank FIRMING ITS POSITION OF NO AM- the distinguished chairman and rank- the votes. NESTY FOR TERRORISTS WHO AT- Mr. LEVIN. Reserving the right to TACK U.S. ARMED FORCES. ing member. object. Mr. President, I suggest the ab- (a) FINDINGS.—Congress makes the fol- As I was saying, the amendment I sence of a quorum. lowing findings: filed is designed to break the logjam of The PRESIDING OFFICER. The (1) The Armed Forces of the United States what is happening at the Department clerk will call the roll. and coalition military forces are serving he- of Justice delaying whistleblower law- The assistant legislative clerk pro- roically in Iraq to provide all the people of suits brought under the False Claims Iraq a better future. Act, and they are not pursuing these ceeded to call the roll. (2) The Armed Forces of the United States Mr. WARNER. Mr. President, I ask and coalition military forces have served cases aggressively. unanimous consent that the order for bravely in Iraq since the beginning of mili- My amendment would require the De- the quorum call be rescinded. tary operations in March 2003. partment of Justice to report on a The PRESIDING OFFICER. Without (3) More than 2,500 of the Armed Forces of semiannual basis on the status of its objection, it is so ordered. the United States and members of coalition efforts to respond to whistleblower Mr. WARNER. Mr. President, we are military forces have been killed and more lawsuits alleging corruption in Iraq, still getting the concurrence of one than 18,000 injured in operations to bring Afghanistan, and elsewhere. The De- side on the unanimous consent request. peace and stability to all the people of Iraq. partment would be required to report (4) The National Security Advisor of Iraq It was my understanding it was affirmed that the Government of Iraq will its findings to the Judiciary Com- cleared. I think it will eventually be ‘‘never give amnesty to those who have mittee, the Appropriations Committee, cleared. In the meantime, I yield the killed American soldiers or Iraqi soldiers or the Armed Services Committee, the floor so that our colleague from Iowa civilians.’’ Homeland Security and Governmental can speak. (5) The National Security Advisor of Iraq Affairs Committee, and the Defense The PRESIDING OFFICER. The re- thanked ‘‘the American wives and American Appropriations Subcommittee. quest is withdrawn. The Senator from women and American mothers for the treas- I believe this is an important first Iowa. ure and blood they have invested in this step that would allow Congress to country . . . of liberating 30 million people in Mr. HARKIN. Mr. President, I thank this country . . . and we are ever so grate- evaluate the Department of Justice ef- the chairman. Any time the chairman ful.’’ forts so we can decide what further needs to interrupt my remarks to seek (b) SENSE OF CONGRESS.—It is the sense of steps are needed to ensure these cases that agreement, I will be more than Congress that are vigorously prosecuted. happy to yield the floor. (1) the goal of the United States and our I am pleased that Senators GRASS- I wish to talk about an amendment I Coalition partners has been to empower the LEY, DORGAN, DURBIN, KENNEDY, JOHN- have not offered yet but I hope will be Iraqi Nation with full sovereignty thereby SON, WYDEN, KERRY, LIEBERMAN, recognizing their freedom to exercise that accepted by both sides. I will offer it, LEAHY, and LAUTENBERG are cospon- sovereignty. Through successive elections and I hope it will be acceptable. It has and difficult political agreements the unity soring this amendment. to do with the loss of some $8 billion government is now in place exercising that The cost of the wars in Iraq and Af- for which we cannot account. sovereignty. We must respect that exercise ghanistan has risen dramatically in More than 3 years into the Iraq war, of that sovereignty in accordance with their each of the last 3 years. The Congres- we have had report after report docu- own wisdom; sional Research Service reports we are

VerDate Aug 31 2005 05:27 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S20JN6.REC S20JN6 mmaher on PROD1PC69 with CONG-REC-ONLINE June 20, 2006 CONGRESSIONAL RECORD — SENATE S6111 now spending about $6.4 billion a Contracting experts says previous adminis- firm. The company, run by a pair of politi- month in Iraq alone. That is about $9 trations often declined to join the False cally connected military veterans, had won million an hour of spending in Iraq—$9 Claims Act lawsuits but that the Bush ad- security contracts in Iraq worth more than million an hour. One of the reasons for ministration’s refusal to unseal the cases is $100 million. But the two men told Mr. Gray- unprecedented. Justice Department spokes- son that they had evidence the firm was sub- these runaway costs is the widespread man Charles Wilson says he can’t discuss stantially overcharging the U.S. occupation corruption in the contracting process: sealed cases or comment on why the depart- authority. shoddy work, nonwork, theft, fraud, ment has yet to act on them. ‘‘All of the Mr. Grayson filed suit against the com- kickbacks, bribes, insider dealings, in- cases are examined on their merits,’’ Mr. pany under the False Claims Act in February flated billings, and on and on. Wilson says. With the Bush administration 2004, but it languished under seal until that There have been many reports in the sitting on the sidelines, primary responsi- fall, when the Justice Department formally press about this wave of corruption. bility for pursuing the Iraq fraud cases rests declined to join the case. The government The Wall Street Journal reported ear- with plaintiffs’ lawyers like Mr. Grayson, a never explained its decision. The case finally lier this year about the problem. Our Harvard-educated lawyer who began his ca- went before a judge in February. After a contentious three-week trial, a fed- former inspector general in Baghdad, reer defending federal contractors but now makes his living going after them. eral jury on March 9 found the company’s Stuart Bowen, concluded that U.S. oc- ‘‘With the sheriff asleep in the office, the two founders, along with a business partner, cupation authorities accounted poorly only way you get justice is with private law- guilty of using fake invoices from shell com- for $8.8 billion in funds dedicated to yers like Alan Grayson willing to step up panies to overcharge the authorities by mil- Iraqi reconstruction from the Develop- and take down these fraudulent companies,’’ lions of dollars. The jury ordered the men to ment Fund for Iraq. He stated this $8.8 says Patrick Burns, the spokesman for the pay $10 million in penalties, with Mr. Gray- billion is lost—lost. The Inspector Gen- advocacy group Taxpayers Against Fraud. son’s clients standing to receive about $3 eral Stuart Bowen said, ‘‘The Coalition ‘‘Alan Grayson showed that you can do that million of the money. Mr. Grayson declined Provisional Authority did not imple- even without help from the government.’’ to say how much money he will be paid. Though it is unclear when the cases will ment adequate financial controls.’’ David Douglass, a lawyer for Custer Battles, proceed to trial, Mr. Grayson is continuing says the company has appealed the verdict. I ask unanimous consent that the to press ahead as best he can. He and other While waiting for the government to act on April 19, 2006 article in the Wall Street lawyers in his firm travel the country taking the other lawsuits, Mr. Grayson is weighing Journal by Yochi J. Breazen be printed depositions, gathering documents and inter- a career change. HIs congressional district is in the RECORD. viewing prospective witnesses for the dozens represented by a conservative Republican, There being no objection, the mate- of currently pending lawsuits. Mr. Grayson and Mr. Grayson is strongly considering rial was ordered to be printed in the says he also regularly passes information to seeking the Democratic nomination to op- RECORD, as follows: the federal investigators probing the cases pose him. He says his campaign, if he choos- [From the Wall Street Journal, Apr. 19, 2006] and the prosecutors deciding whether the es to run, would center on the war in Iraq. government will participate in them. CONTRACTOR ADMITS BRIBING A U.S. OFFICIAL A fierce critic of the war in Iraq, Mr. Gray- PLEA DEAL SHOWS HOW BUSINESSMAN RIGGED IN IRAQ son drives an aging Cadillac emblazoned with BIDS FOR REBUILDING HILLAH; ‘CONSIDERED LAWYER USES CIVIL WAR-ERA LAW TO GO AFTER antiadministration bumper stickers such as IT A FREE-FRAUD ZONE’ FIRMS FOR CORRUPTION, BUT ADMINISTRATION ‘‘Bush Lied, People Died, ‘‘He says the ad- (By Yochi J. Dreazen) WON’T HELP ministration’s botched handling of Iraq (By Yochi J. Dreazen) opened the door for corrupt contractors to In January 2004, Robert Stein, a senior U.S. contracting official in Iraq, sent an un- ORLANDO.—From his home office in a pink- improperly reap fortunes there. At a hearing painted mansion here, lawyer Alan Grayson in February 2005 held by Democratic sen- usual email to American businessman Philip is waging a one-man war against contractor ators, Mr. Grayson asserted that the admin- Bloom. fraud in Iraq. istration had ‘‘not lifted a finger to recover Mr. Stein wrote that he arranged for a new Mr. Grayson has filed dozens of lawsuits tens of millions of dollars our whistle-blow- set of lucrative rebuilding contracts to be against Iraq contractors on behalf of cor- ers allege was stolen from the government.’’ awarded to Mr. Bloom, but wanted the busi- porate whistle-blowers. He won a huge vic- His opinions on the matter haven’t shifted nessman to send his bid on the letterhead of tory last month when a federal jury in Vir- since. ‘‘The Bush administration has made a a fake company to avoid attracting atten- ginia ordered a security firm called Custer conscious decision to sweep the cases under tion in Baghdad. A few days later, Mr. Bloom Battles LLC to return $10 million in ill-got- the rug for as long as possible,’’ he says replied that he would ‘‘bring with me the ten funds to the government. The ruling today. ‘‘And the more bad news that comes dummies . . . I have five dummies per bid.’’ marked the first time an American firm was out of Iraq, the more motivation they have The emails illustrate how closely U.S. offi- held responsible for financial impropriaties to do so.’’ cials on active duty, like Mr. Stein, were in Iraq. But it also highlighted the limits of For the contractors in his cross hairs, Mr. willing to work with Mr. Bloom to help him the broader efforts to stem contractor abuses Grayson, 48, is a formidable opponent. He re- defraud the government through a massive there. ceived his undergraduate, master’s and law bid-rigging scheme in southern Iraq. They The False Claims Act that Mr. Grayson degrees from Harvard. He made millions dur- were released yesterday as part of a guilty used in the Custer Battles case is a Civil ing a two-year stint as the president of IDT plea from Mr. Bloom, who admitted to steer- War-era statute allowing whistle-blowers to Corp., a start-up that has since grown into ing $2 million in cash and other bribes to sue contractors suspected of defrauding the one of the nation’s largest providers of dis- government officials in exchange for $8.6 government and then keep a chunk of any count telecommunications services. Mr. million in Iraqi construction and demolition recovered money. There are an estimated 50 Grayson says he has poured hundreds of contracts. Mr. Bloom—who also admitted to such cases pending against Iraq contractors, thousands of personal funds into his small providing the officials with jewelry, first- including large firms like Halliburton Co.’s eight-person law firm to help defray the cost class plane tickets and sexual favors from Kellogg Brown and Root subsidiary. A tech- of pursuing Iraq fraud cases that may not women he employed at a villa in Baghdad— nicality in the statute, however, has allowed faces as long as 40 years in prison and nearly the Bush administration to prevent the make it to trial for years. ‘‘I have deep enough pockets to subsidize the legal work,’’ $8 million in penalties. other lawsuits from moving forward. Cases The plea to charges of conspiracy, bribery filed under the statute are automatically he says. If he prevails, he might fill those deep and money laundering is the latest to sealed, which means that they can’t proceed emerge from an investigation into alleged to trial—or even he publicly disclosed—until pockets. Whistle-blowers generally receive corruption by American officials in Hillah, a the administration makes a formal decision 30% of any penalty, although the exact por- restive southern city. Mr. Stein, a former ci- about whether to join them. tion of every award is set by the judge in The law says such decisions are supposed each case. Lawyers like Mr. Grayson, in vilian occupation official charged with over- to be made within 60 days, but with the ex- turn, receive 30% to 50% of whatever the seeing $82 million in rebuilding funds there, ception of the Custer Battles case, which it whistle-blowers get. ‘‘It’s really a financial pleaded guilty on Feb. 2 to conspiracy, brib- declined to join, the administration has yet crapshoot,’’ he says. ery and using stolen government money to to take a position on any other suits, some Mr. Grayson’s firm switched its focus from purchase an array of high-powered rifles and of which were filed more than two years ago. working for contractors to representing indi- grenade launders. The law allows the Justice Department to vidual whistle-blowers shortly after U.S. Lt. Col. Michael Wheeler and Lt. Col. ask for extensions, which are almost always forces swept into Iraq in March 2003. He says Debra Harrison, who both worked in Hillah, granted, for as long as it sees fit. The depart- the firm made the move because they began were arrested late last year and charged with ment has kept the other False Claims Act to be contacted by whistle-blowers who were similar offenses; both are free on bond. Lt. cases from proceeding by repeatedly asking referred by former clients and others. Col. Wheeler’s attorney didn’t return a call; for extensions in each one. Two of his first clients were William D. Lt. Col. Harrison declined to comment. That has left the cases in legal limbo, with Baldwin, a former manager for Custer Bat- Three other military officials are mentioned lawyers like Mr. Grayson unable to bring tles, and Robert J. Isakson, a construction in the court papers, and law enforcement au- them to trial or detail them publicly. subcontractor who had worked with the thorities say more arrests are likely. ‘‘There

VerDate Aug 31 2005 05:27 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S20JN6.REC S20JN6 mmaher on PROD1PC69 with CONG-REC-ONLINE S6112 CONGRESSIONAL RECORD — SENATE June 20, 2006 was no oversight anywhere near them at the Unemployment is a bigger problem than U.S. contractors is the False Claims time and they did not believe they would be the Iraqi insurgent force. We spent $18 bil- Act. Indeed, thanks to this law, more caught,’’ says Special Inspector General for lion on economic reconstruction. There is than $17 billion has been recovered on Iraq Reconstruction Stuart Bowen, whose in- only $1.6 billion left in the pipeline. When behalf of the American taxpayer. Under vestigators uncovered the ring. ‘‘They con- the money runs out, in my judgment, we just sidered if a free-fraud zone.’’ lost the war. the False Claims Act, whistleblowers are given a powerful incentive to come A variety of reports of congressional inves- But money on a massive scale—$8.8 tigators and the special inspector general for forward and expose instances of fraud. billion, as the inspector general has Iraq reconstruction have found evidence that The statute allows them to sue con- hundreds of millions of dollars were spent said—has been ‘‘lost into thin air.’’ We tractors suspected of defrauding the without proper authorization, given to con- can’t account for it. While this was not government, and then they can keep a tractors who performed shoddy work or paid all U.S. money, it symbolizes the mag- portion of the recovered funds as a re- to firms charging unreasonably high prices. nitude of the corruption we are facing. Large sums of money remain unaccounted ward. We don’t know where it has gone. But there is a problem—a big prob- for, and auditors say they have little sense Imagine the critical things we could yet of how much may have been stolen. lem. Scores of lawsuits have been Previous court filings had detailed the have done with that $8.8 billion to help brought against contractors suspected broad outlines of the conspiracy, which con- win the hearts and minds of the Iraqi of fraud in Iraq and Afghanistan, in- tinued for almost two years. Mr. Stein and people. This chart shows what the Iraqi cluding—and I will have more to say the military officials submitted fake bids Relief and Reconstruction Fund goes about this in a minute—a Halliburton from dummy companies for contracts that for. I won’t read them all, but obvi- subsidiary, Kellogg, Brown, & Root. Mr. Bloom was seeking and then awarded ously security and law enforcement, him the work as the low bidder. To evade Yet the Department of Justice has al- the electric sector—they are getting lowed only one of those suits to go for- scrutiny, Mr. Stein—who had the authority less electricity now than they did be- to award contracts of as much as $500,000— ward in the courts, and that lawsuit re- typically awarded contracts to Mr. Bloom in fore the war started—oil infrastruc- sulted in a major recovery of fraudu- amounts of as much as $498,900. ture, water resources and sanitation, lently collected payments. The new plea offered new evidence of how roads and bridges, health care, edu- Given the massive amount of missing closely the two men worked. In a separate cation; all of these things, $8.8 billion money, you would think that more series of early 2004 emails, Mr. Stein warned could have gone for, but it didn’t go for than just one lawsuit has been filed the businessman that another U.S. official in that. Where did it go? Well, we just against corporate contractors. To be Hillah would demand a ‘‘cut’’ if he knew don’t know. about the bid-rigging arrangements. ‘‘The sure, there are many more legitimate fewer people who know what we are doing The State Department’s own num- cases out there. Since 2003, the Special the better,’’ Mr. Stein wrote. ‘‘I am your bers for this Iraq Relief and Recon- Inspector General for Iraqi Reconstruc- partner as you put it so trust in me and what struction Fund tell us they believe a tion, the U.S. Army Audit Agency, and I feel.’’ lot can be done with this amount of the Defense Contract Audit Agency Mr. Bloom seemed willing to make Mr. money. It could have paid for all of the have all uncovered contracting abuses Stein his partner in a formal sense as well, security and law enforcement training. In a Feb. 18, 2004, email, Mr. Bloom told one related to the conflict in Iraq. Auditors It could have paid for all of the electric of the Defense Contract Audit Agency of his employees that Mr. Stein was the sector programs. The waste of billions ‘‘vice president of operations’’ for the com- have found that Halliburton has pany and should get whatever assistance he of dollars is bad enough, but the wide- charged $1.4 billion in questionable and asked for. Mr. Stein, then a serving govern- spread corruption is impeding our war undocumented costs on just two con- ment official, sent a note back asking that effort; it is slowing reconstruction ef- tracts. The auditors found $813 million the firm’s business cards spell his name as forts; it is denying our troops in the in questioned costs under Halliburton’s Robert because ‘‘it sounds a bit better than field the quality support and equip- Logistic Civil Augmentation Program ‘Bob.’’’ ment they deserve. contract to provide support services to Mr. Stein, 50, who faces formal sentencing Just imagine how we could have uti- next month, could receive a prison sentence the troops. So here are two, right here: of as long as 30 years, although he is likely lized $8.8 billion to help our military in $813 million in ‘‘questioned costs’’ on to receive far less because of his cooperation the field. When our administration Halliburton’s—what they call the with prosecutors. loses $8.8 billion that was to have gone LOGCAP contract, that is for Logistic No sentencing hearing has been set yet for for reconstruction, then we have to re- Civil Augmentation Program; and $382 Mr. Bloom, 65. He had pleaded guilty in Feb- place that money with our money. The million in ‘‘unsupported costs.’’ That is ruary and been cooperating with prosecutors reconstruction is taking place. If we $1.195 billion just to one company. That ever since, although the plea was only un- don’t restore the unaccounted for sealed Tuesday. John Nassikas, an attorney is Halliburton. That is Halliburton in for Mr. Bloom, said he had filed court papers money, no other country will. So we ‘‘questioned costs.’’ asking for home detention during the course have to appropriate U.S. taxpayer dol- The auditors at the agency chal- of his dealings with the government and lars to fill the void. Let me repeat lenged most of these costs as ‘‘unrea- hopes Mr. Bloom’s ultimate sentence would that. By this loss of $8.8 billion, if we sonable in amount’’ after completing be reduced because of his cooperation. don’t account for it and somehow re- the audit action because the costs ‘‘ex- Mr. HARKIN. This has had an ex- coup it, the reconstruction effort going ceeded that which would be incurred by tremely negative impact on our work forward will be made up by taxpayers’ a prudent person.’’ The auditors also in Iraq. This fund was responsible for dollars, our taxpayers’ dollars. found an additional $442 million in paying the salaries of hundreds of Aside from that, how could we have Halliburton’s charges are ‘‘unsup- thousands of government employees, used $8.8 billion to support our own ported.’’ As a result, Halliburton’s such as teachers, health workers, and troops? Well, let’s take a look at this. total ‘‘questioned’’ and ‘‘unsupported’’ government administrators; it sup- Here is the $8.8 billion that we have costs exceed $1.4 billion. ported the Iraqi defense and police lost. Equipment maintenance, about So if you look here at the audits of forces; and it helped repair Iraq’s dilap- $3.2 billion; billeting of soldiers, $2.4 Halliburton’s Iraq contracts, the idated infrastructure. So the loss of billion; body armor, $1.9 billion; special ‘‘questioned costs,’’ the ‘‘unsupported $8.8 billion hurts our mission in Iraq. pay for hostile fire pay, family separa- costs’’ under these two contracts, There is real urgency to the spending tion allowances, hardship duty pay, LOGCAP and RIO, if you add them up, issue. On Meet the Press recently, we $1.3 billion. All of it could have been combined it is $1.47 billion. heard from retired GEN Barry McCaf- done with the $8.8 billion that is lost. What is being done about this? Noth- frey, who just returned from Iraq and Let me repeat: $8.8 billion lost. It is ing. Nothing. The Department of Jus- who only last week advised the Presi- not just a loss to our Treasury and the tice is doing nothing. dent and his national security team at taxpayers, it is as well a loss to our There are numerous reports from the White House on the situation in ability to keep our own troops sus- former top Army contracting officials, Iraq. He spoke about the importance of tained. from former DOD officials, from sol- spending our resources efficiently on The single most important legal tool diers on the ground, and from former Iraq economic reconstruction. General that American taxpayers have to re- Halliburton and Kellogg, Brown & Root McCaffrey said: cover funds stolen through fraud by employees as to that company’s waste,

VerDate Aug 31 2005 05:27 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S20JN6.REC S20JN6 mmaher on PROD1PC69 with CONG-REC-ONLINE June 20, 2006 CONGRESSIONAL RECORD — SENATE S6113 fraud, and abuse—numerous reports. priate manner all claims of contractor Mr. WARNER. I believe very strongly There are reports that Halliburton waste, fraud, and abuse related to the that a second amendment was needed charged for meals never served, that U.S. Government’s activities in Iraq because of what we have been working Halliburton overcharged for oil and oil and Afghanistan. It would require the toward—the United States and its coa- delivery, that Halliburton overcharged Department of Justice to report on lition partners—from the very begin- and double-charged for shipments of similar executive branch interagency ning, and that is to provide the Iraqi soda pop, that Halliburton overcharged efforts. My amendment would prevent people with a sovereign nation in on transportation contracts. I could go the Department of Justice from impos- which they can exercise the full range on and on. ing undue secrecy on false claims civil of authorities and responsibilities of a But for reasons that I cannot fathom, actions related to Government spend- sovereign nation. Therefore, they went the Department of Justice has not told ing in Iraq and Afghanistan by simply about a series of elections. Every Mem- Congress or the American taxpayer requiring the Department of Justice to ber of this Chamber recognizes the what it is doing to bring these cases to tell Congress what it is doing to com- courage of the Iraqi people in three justice. And it seems as though noth- bat this corruption. Sharing this infor- elections. Then there was the forma- ing is being done. mation with Congress is nothing out of tion of a permanent government, a I believe we have an obligation to the the ordinary, but it is long past due. As unity government. Having achieved American taxpayer to be protected a matter of good faith to our troops that, they are now beginning to exer- against theft or misuse of tax dollars and to the American taxpayer, we need cise the full responsibilities of a sov- by corrupt contractors. Yet there is no to move aggressively against corrup- ereign nation. I was concerned that we, evidence the Justice Department is tion and war profiteering in Iraq, Af- as a legislative body of our Nation, not doing anything about it. So absent this ghanistan, and elsewhere. These cases indicate that we are infringing on their information, I can only conclude that have gone on too long. rights of sovereignty. This whole issue of amnesty is an im- nothing is being done about this cor- In closing, I quote the British philos- portant one. I do not, in any measure, ruption. If this is the case, then the re- opher John Stuart Mill who said: ‘‘The suggest it is not important. But I think covery of perhaps billions of dollars in proper office of a representative assem- we have to observe that they are a sov- taxpayer money is being blocked. bly is to watch and control the govern- ereign nation. How they go about it While Congress and the American ment.’’ should largely be within the confines of taxpayer remain in the dark about Mr. President, hopefully this is a their own wisdom and goals because what the Justice Department is doing nonpartisan amendment. It is all about our whole future is dependent on this to combat contract corruption, False enabling Congress to provide meaning- Government and the people of Iraq tak- Claims Act cases continue to languish. ful oversight of executive branch activ- ing back their country such that our The way it works is that the False ity consistent with our duty to do so forces can come back home. Whatever Claims Act cases are automatically under the Constitution and the law. It that Government does that is construc- sealed. They cannot go to trial; they will enable Congress to know the ad- tive toward reaching that goal I want cannot be publicly disclosed until the ministration’s plans for rooting out to support. So in working on this Department of Justice makes a deci- contractor corruption in Iraq, Afghani- amendment, I, working with the distin- sion of whether to join them. Under the stan, and elsewhere, and I urge my col- guished Senator from Kentucky, draft- statute, these decisions are supposed to leagues to support the amendment. ed one or two provisions with him be made within 60 days. However, the Mr. President, I yield the floor. which state as follows: Department of Justice is allowed to f seek additional time where needed. It is the sense of Congress that the goal of RECESS the United States and our Coalition partners This is appropriate because a lot of has been to empower the Iraqi Nation with times these cases are very complex and The PRESIDING OFFICER. Under full sovereignty thereby recognizing their require extensive investigation. How- the previous order, the Senate stands freedom to exercise that sovereignty. ever, these extensions cannot be al- in recess until 2:15 p.m. today. Through successive elections and difficult lowed to become a form of indefinite Whereupon, the Senate, at 12:28 p.m., political agreements the unity government delay, stretching out year after year recessed until 2:15 p.m. and reassem- is now in place exercising that sovereignty. after year. And I fear that is exactly bled when called to order by the Pre- We must respect that exercise of that sov- ereignty in accordance with their own wis- siding Officer (Mr. CORNYN). what is happening. As I said, with just dom; one exception, the Department of Jus- f History records that governments derived tice has refused to take a position on NATIONAL DEFENSE AUTHORIZA- of free elections should not grant amnesty to any of the lawsuits related to Iraq and those who have committed war crimes or TION ACT FOR FISCAL YEAR terrorist acts, and; [further] Afghanistan, some of which were filed 2007—Continued over 3 years ago. Instead, the Depart- The United States should continue with the historic tradition of diplomatically, eco- ment files for and receives indefinite The PRESIDING OFFICER. The dis- tinguished Senator from Virginia is nomically, and in a humanitarian manner extensions. assisting nations and the people whom have As a result, as I said, with one excep- recognized. fought once a conflict is concluded. Mr. WARNER. Mr. President, the tion, every single whistleblower law- Mr. MCCONNELL. Will the Senator pending business is the DOD authoriza- suit has been effectively blocked by the from Virginia yield for a question? Department of Justice. Fraud has gone tion bill and most specifically the Mr. WARNER. I am happy to yield unpunished, billions of taxpayer dollars amendments by Senator MCCONNELL the floor, if the Senator so desires. continue to be squandered, and coura- and Senator BILL NELSON of Florida. Mr. MCCONNELL. If the Senator will geous whistleblowers who have come The McConnell amendment is to be yield for a question, I say to my friend forward, often at great personal risk, voted on first, followed by a vote on from Virginia: Is the Senator from have been left in a sort of legal limbo. the second amendment. Am I correct? Kentucky correct that the genesis of As one attorney representing a whistle- The PRESIDING OFFICER. That is the Nelson amendment is a newspaper blower put it: correct. story quoting a lower level Govern- The Bush administration has made a con- AMENDMENT NO. 4272, AS MODIFIED ment official, since dismissed by the scious decision to sweep the cases under the Mr. WARNER. I shall address the Iraqi Government for suggesting that rug for as long as possible. And the more bad McConnell amendment. forces who may have killed American news that comes out of Iraq, the more moti- First, the amendments have a great or Iraqi troops would be given am- vation they have to do so. likeness. But I felt, in working with nesty? Is it not correct, I ask my friend This situation is unacceptable. So the distinguished Senator from Ken- from Virginia, chairman of the Armed my amendment would therefore require tucky, that his amendment—I ask Services Committee, that that lower the Justice Department to report to unanimous consent that I be a cospon- level official has since been dismissed Congress on a semiannual basis the ef- sor of that amendment. from the Iraqi Government? forts it is undertaking to ensure that it The PRESIDING OFFICER. Without Mr. WARNER. Mr. President, he was is investigating in a timely and appro- objection, it is so ordered. fired.

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