FROM MEDELLIN TO MOSCOW WITH BROWN & ROOT
Halliburton Corporation's Brown & Root is one of the major components of the Bush-Cheney Drug Empire. The success of Bush Vice-Presidential running mate Richard Cheney at leading Halliburton, Inc. to a five-year, US$3.8 billion "pig-out" on federal contracts and taxpayer-insured loans is only a partial indicator of what may happen, now that the Bush ticket has won the US presidential election.
A closer look at available research, including an August 2, 2000 report by the Center for Public Integrity (CPI) (
www.public-i.org), suggests that drug money has played a role in the successes achieved by Halliburton under Cheney's tenure as CEO from 1995 to 2000. This is especially true for Halliburton's most famous subsidiary, heavy construction and oil giant Brown & Root. A deeper look into history reveals that Brown & Root's past - as well as the past of Dick Cheney himself - connects to the international drug trade on more than one occasion and in more than one way.
Last June, the lead Washington, DC, attorney for a major Russian oil company connected in law enforcement reports to heroin smuggling, and also a beneficiary of US-backed loans to pay for Brown & Root contracts in Russia, held a $2.2 million fundraiser to fill the already bulging coffers of presidential candidate George W. Bush. This is not the first time that Brown & Root has been connected to illegal drugs, and the fact is that this "poster child" of American industry may also be a key player in Wall Street's efforts to maintain domination of the half-trillion-dollar-a-year global drug trade and its profits. And Dick Cheney, who has also come closer to illegal drugs than most suspect and who is also Halliburton's largest individual shareholder ($45.5 million), has a vested interest in seeing to it that Brown & Root's successes continue.
Of all the American companies dealing directly with the US military and providing cover for CIA operations, few firms can match the global presence of this giant construction powerhouse which employs 20,000 people in more than 100 countries. Through its sister companies or joint ventures, Brown & Root can build offshore oil rigs, drill wells and construct and operate everything from harbours and pipelines to highways and nuclear reactors. It can train and arm security forces and it can now also feed, supply and house armies. One key beacon of Brown & Root's overwhelming appeal to agencies like the CIA is that, as it proudly announces from its own corporate web page, it has received the contract to dismantle ageing Russian nuclear-tipped ICBMs in their silos. Furthermore, the relationships between key institutions, players and the Bushes themselves suggest that under a George "W" Administration the Bush family and its allies, using Brown & Root as the operational interface, may well be able to control the drug trade all the way from Medellín to Moscow.
Originally formed as a heavy construction company to build dams, Brown & Root grew its operations via shrewd political contributions to Senate candidate Lyndon Johnson in 1948. Expanding into the building of oil platforms, military bases, ports, nuclear facilities, harbours and tunnels, Brown & Root virtually underwrote LBJ's political career. It prospered as a result, making billions on US Government contracts during the Vietnam War. The Austin Chronicle, in an August 28, 2000 Op-Ed piece entitled "The Candidate from Brown & Root", labels Republican Cheney as the political dispenser of Brown & Root's largesse. According to political campaign records, during Cheney's five-year tenure at Halliburton the company's political contributions more than doubled to $1.2 million. Not surprisingly, most of that money went to Republican candidates.
Independent news service Newsmakingnews also describes how in 1998, with Cheney as Chairman, Halliburton spent $8.1 billion to purchase oil industry equipment and drilling supplier Dresser Industries. This made Halliburton a corporation that will have a presence in almost any future oil drilling operation anywhere in the world. And it also brought back into the family fold the company which had once (also in 1948) sent a plane to fetch the new Yale graduate George H.W. Bush to begin his career in the Texas oil business. Bush the elder's father, Prescott, served as a managing director for the firm that once owned Dresser: Brown Brothers Harriman.
BROWN & ROOT'S SPECIAL OPERATIONS
It is clear that everywhere there is oil there is Brown & Root. But increasingly, everywhere there is war or insurrection there is Brown & Root also. From Bosnia and Kosovo to Chechnya, Rwanda, Burma, Pakistan, Laos, Vietnam, Indonesia, Iran, Libya, Mexico and Colombia, Brown & Root's traditional operations have expanded from heavy construction to include the provision of logistical support for the US military. Now, instead of US Army quartermasters, the world is likely to see Brown & Root warehouses storing and managing everything from uniforms and rations to vehicles.
Dramatic expansion of Brown & Root's operations in Colombia also suggests Bush preparations for a war-inspired feeding frenzy as a part of "Plan Colombia". This is consistent with moves by former Bush Treasury Secretary Nicholas Brady to open a joint Colombian-American investment partnership called Corfinsura for the financing of major construction projects with the Colombian Antioquia Syndicate, headquartered in Medellín (see FTW, June 2000).
And expectations of a ground war in Colombia may explain why Brown & Root, in a 2000 Securities Exchange Commission (SEC) filing, reported that in addition to owning more than 800,000 square feet of warehouse space in Colombia, it also leases another 122,000 square feet. According to the Brown & Root Energy Services Group filing, the only other places where the company maintains warehouse space are in Mexico (525,000 square feet) and the United States (38,000 square feet).
According to the website of Colombia's Foreign Investment Promotion Agency, Brown & Root had no presence in the country until 1997. What does Brown & Root - which according to Associated Press (AP) has made more than $2 billion supporting and supplying US troops - know about Colombia that the United States public does not? Why the need for almost a million square feet of warehouse space which can be transferred from one Brown & Root operation (energy services) to another (military support) with the stroke of a pen?
As described by AP, during the "Iran-Contra" era Congressman Dick Cheney of the House Intelligence Committee was a rabid supporter of Marine Lt Col. Oliver North. This was in spite of the fact that North had lied to Cheney in a private 1986 White House briefing. Oliver North's own diaries and subsequent investigations by the CIA Inspector-General have irrevocably tied him directly to cocaine smuggling during the 1980s and the opening of bank accounts for one firm moving four tons of cocaine a month. This, however, did not stop Cheney from actively supporting North's (unsuccessful) 1994 run for the US Senate from Virginia - just a year before he took over the reins at Brown & Root's parent company, Dallas-based Halliburton, Inc., in 1995.
As the Bush Secretary of Defense during Desert Shield/Desert Storm (1990-91), Cheney also directed special operations involving Kurdish rebels in northern Iran. The Kurds' primary source of income for more than 50 years has been heroin smuggling from Afghanistan and Pakistan through Iran, Iraq and Turkey.
Having had some personal experience with Brown & Root, I noted carefully when the Los Angeles Times observed that on March 22, 1991 a group of gunmen burst into the Ankara, Turkey, offices of joint venture Vinnell, Brown & Root and assassinated retired Air Force Chief Master Sergeant John Gandy.
In March 1991, tens of thousands of Kurdish refugees, long-time assets of the CIA, were being massacred by Saddam Hussein in the wake of the Gulf War. Saddam, seeking to destroy any hopes of a successful Kurdish revolt, found it easy to kill thousands of the unwanted Kurds who had fled to the Turkish border seeking sanctuary. There, Turkish security forces - trained in part by the Vinnell, Brown & Root partnership - turned thousands of Kurds back into certain death.
Today, the Vinnell Corporation (a TRW company) is one of the three pre-eminent private mercenary corporations in the world, along with the firms MPRI and DynCorp (see FTW, June 2000). It is also the dominant entity for the training of security forces throughout the Middle East.
Not surprisingly, the Turkish border regions in question were the primary transshipment points for heroin produced in Afghanistan and Pakistan, destined for the markets of Europe.
A confidential source with intelligence experience in the region subsequently told me that the Kurds "got some payback against the folks that used to help them move their drugs". He openly acknowledged that Brown & Root and the Vinnell Corporation both routinely provided NOC (non-official cover) for CIA officers. But I already knew that.
From 1994 to 1999, during US military intervention in the Balkans - where, according to The Christian Science Monitor and Jane's Intelligence Review, the Kosovo Liberation Army (KLA) controls 70 per cent of the heroin entering Western Europe - Cheney's Brown & Root made billions of dollars supplying US troops from vast facilities in the region. Brown & Root support operations continue in Bosnia, Kosovo and Macedonia to this day.
Dick Cheney's footprints have come closer to drugs than one might suspect. The Center for Public Integrity's August 2000 report brought them even closer. It would be correct to say that there is a direct linkage of Brown & Root facilities - often set up in remote, hazardous regions - with every drug-producing region and every drug-consuming region in the world. These coincidences, in and of themselves, do not prove complicity in the trade. Other facts, however, lead inescapably in that direction.
A DIRECT DRUG LINK TO DICK CHENEY
The CPI report entitled "Cheney Led Halliburton to Feast at Federal Trough", written by veteran journalists Knut Royce and Nathaniel Heller, describes how, under five years of Cheney's leadership, Halliburton, largely through subsidiary Brown & Root, enjoyed $3.8 billion in federal contracts and taxpayer- insured loans. The loans had been granted by the Export-Import Bank (EXIM) and the Overseas Private Investment Corporation (OPIC). According to Ralph McGehee's CIA Base, both institutions are heavily infiltrated by the CIA and routinely provide NOC to its officers.
One of those loans, to Russian financial/banking conglomerate The Alfa Group of Companies, contained $292 million to pay for Brown & Root's contract to refurbish a Siberian oil field owned by the Russian Tyumen Oil Company. The Alfa Group completed its 51 per cent acquisition of Tyumen Oil in what was allegedly a rigged bidding process in 1998. An official Russian Government report claims that The Alfa Group's top executives, oligarchs Mikhail Fridman and Pyotr Aven, "allegedly participated in the transit of drugs from Southeast Asia through Russia and into Europe". These same executives, Fridman and Aven, who reportedly smuggled the heroin in connection with Russia's Solntsevo mob family, were the same ones who applied for the EXIM loans that Halliburton's lobbying later safely secured. As a result, Brown & Root's work in Alfa Tyumen oil fields could continue - and expand.
After describing how organised criminal interests in The Alfa Group had allegedly stolen the oil field by fraud, the CPI story - using official reports from the FSB (the Russian equivalent of the FBI), oil companies such as BP-Amoco, former CIA and KGB officers and press accounts - then established a solid link to Alfa Tyumen and the transportation of heroin. In 1995, sacks of heroin disguised as sugar had been stolen from a rail container leased by Alfa Eko and sold in the Siberian town of Khabarovsk. A problem arose when many residents of the town became "intoxicated" or "poisoned".
The CPI story also stated: "The FSB report said that within days of the incident, Ministry of Internal Affairs (MVD) agents conducted raids of Alfa Eko buildings and found 'drugs and other compromising documentation'.
"Both reports claim that Alfa Bank has laundered drug funds from Russian and Colombian drug cartels.
"The FSB document claims that at the end of 1993, a top Alfa official met with Gilberto Rodriguez Orejuela, the now imprisoned financial mastermind of Colombia's notorious Cali cartel, 'to conclude an agreement about the transfer of money into the Alfa Bank from offshore zones such as the Bahamas, Gibraltar and others'. The plan was to insert it back into the Russian economy through the purchase of stock in Russian companies.
"...He [the former KGB agent] reported that there was evidence 'regarding [Alfa Bank's] involvement with the money laundering of...Latin American drug cartels'."
It then becomes harder for Cheney and Halliburton to assert mere coincidence in all of this, as CPI reported that Tyumen's lead Washington attorney, James C. Langdon, Jr, at the firm of Aikin Gump, "...helped coordinate a $2.2 million fundraiser for Bush this June. He then agreed to help recruit 100 lawyers and lobbyists in the capital to raise $25,000 each for W's campaign."