Wednesday, July 18, 2007

What's 5%...?

This article talks about the systemic over-charging for contractor service that has plagued the US Government throughout the Iraq debacle. The article centers on KBR, a Halliburton subsidiary. Reagarding audits done by the government on KBR invoices, Linda Theis of the Army Sustainment Command, downplayed the errors. They amount to just 4.3% of the contract amount, she said. "This percentage does not indicate a systemic weakness in business systems."

4.3%? This figure is greater than 40% of "top indistries" margins in 2007. The food production industry, at a dismal -0.7% margin, would be overjoyed to pick up an additional 4.3% in invoicing "errors".

I'm also quite sure that the taxpayers don't mind paying the extra money either, right?

0 Responses - Click Here to Comment: