The US Army did another about-face and said it was giving Halliburton Co more time to justify its bills to the government before withholding 15 percent of its payments on future invoices for logistical support of troops in Iraq and Kuwait.
Spokeswomen for the Army Materiel Command said in published reports that a decision on whether to withhold money from Halliburton was on hold. Linda Theis, a spokeswoman for the Army Materiel Command, said on Tuesday that the military would have a decision within a week.
Halliburton had said on Monday that the Army Materiel Command had given the company more time to explain and account for its costs before implementing a clause in a contract allowing withholding of payments. But a day later, the company said it had learned the command had refused to grant a third extension before implementing the clause, which allows the government to withhold 15 percent of payments until contractors prove their costs.
Halliburton has been awarded more than US$6 billion in contracts related to the invasion of Iraq, but it has been under fire for allegedly overcharging.
A withhold would affect Halliburton's LOGCAP III contract with the Army to provide logistical support for troops.
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