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Iran Sanctions Foe Dick Cheney Slams Obama on Nuclear Deal

December 9, 2013

If any American public figure has completely disqualified himself from weighing in on President Obama's nuclear deal with Iran, it is former Vice President Dick Cheney. After all, as a quick look back at his statements about the Iraq war shows ("Simply stated, there is no doubt that Saddam Hussein now has weapons of mass destruction" in 2002, "My belief is we will, in fact be greeted as liberators" in 2003, "[Iraq is] the geographic base of the terrorists who have had us under assault now for many years, but most especially on 9/11" that same year and 2005's classic, "I think they're in the last throes, if you will, of the insurgency"), Cheney was tragically wrong at every turn. But his reign of error hardly ends there. As it turns out, Halliburton CEO Dick Cheney was opposed to the Iran sanctions regime that brought Tehran to the table in the first place.
While Vice President, Cheney in 2002 denounced Iran as "the world's leading exporter of terror." But during his tenure as Halliburton chief in the 1990's, Cheney strenuously argued against Clinton's sanctions regime and expanded Halliburton's business with Tehran. In 1998, he complained that U.S. firms were "cut out of the action." And back in 1996, Cheney railed against the Clinton prohibitions on Iranian trade and financial activity for American firms:

"We seem to be sanction-happy as a government. The problem is that the good Lord didn't see fit to always put oil and gas resources where there are democratic governments."

As it turned out, Halliburton side-stepped the U.S. restrictions on doing business in Iran in place since the 1990's by using a Cayman Islands subsidiary. And what should have come as a surprise to no one, CEO Dick Cheney opposed those very sanctions until, of course, he became George W. Bush's Vice President.
In 2004, the CBS newsmagazine 60 Minutes detailed the Iranian business dealings of Cheney's former company, Halliburton. Despite the prohibitions signed into law by President Clinton with his 1995 executive order and the Iran and Libya Sanctions Act of 1996, Halliburton continued to reap the profits of business with Iran through its non-U.S. subsidiaries. While U.S. law bans virtually all commerce with the rogue nations, Halliburton was able to jump through its major loophole: the rules do not apply to any foreign or offshore subsidiary so long as it is run by non-Americans. As CBS documented:

That subsidiary, Halliburton Products and Services, Ltd., is wholly owned by the U.S.-based Halliburton and is registered in a building in the capital of the Cayman Islands -- a building owned by the local Calidonian Bank. Halliburton and other companies set up in this Caribbean Island, because of tax and secrecy laws that are corporate friendly.

Halliburton is the company that Vice President Dick Cheney used to run. He was CEO from 1995 to 2000, during which time Halliburton Products and Services set up shop in Iran. Today, it sells about $40 million a year worth of oil field services to the Iranian government.

In the wake of the January 2004 60 Minutes piece, the company moved quickly to declare that "Halliburton's business in Iran is clearly permissible under applicable laws and regulations" and cited its October 2003 disclosures to the New York City police and fire pension funds. Despite those assurances, Dick Cheney's old firm was subpoenaed by a U.S grand jury in June 2004. In early 2005, Halliburton announced that it would end its business activities there when after fulfilling its ongoing contracts, including a $35 million gas drilling project it had just won the previous month. Halliburton's exit was completed in 2007.
Nevertheless, Halliburton paid no price for its Iran sanctions-busting. In fact, the company continued to profit handsomely from the U.S. government and American taxpayers. As the New York Times explained in March 2010, even as the Obama administration was seeking tougher UN sanctions to press Tehran into curbing its nuclear program, "of the 74 companies The Times identified as doing business with both the United States government and Iran, 49 continue to do business there with no announced plans to leave."

The federal government has awarded more than $107 billion in contract payments, grants and other benefits over the past decade to foreign and multinational American companies while they were doing business in Iran, despite Washington's efforts to discourage investment there, records show.

That includes nearly $15 billion paid to companies that defied American sanctions law by making large investments that helped Iran develop its vast oil and gas reserves.

Among the U.S. contractors also profiting from Iran was Halliburton, which pocketed $27.1 billion from American taxpayers between 2000 and 2009:

Halliburton, former Vice President Cheney's old company, provided oil and gas drilling services to Iran through foreign subsidies. After a political furor erupted over the work, the company announced it would do no new business in Iran, and it exited the country altogether in 2007. While still operating in Iran, Halliburton won huge contacts from the federal government, including a no-bid contract to restore Iraq's oil sector, as did its subsidiary at the time, Kellogg Brown & Root.

Though he did not benefit directly from the Iran contracts of Halliburton's foreign-based subsidiaries, Cheney continued to have financial ties to his former firm. Despite Cheney's assurances that "I've severed all my ties with the company, gotten rid of all my financial interest," a 2003 report by the Congressional Research Service found that the Vice President retained 433,000 shares of Halliburton. In addition, Cheney received $162,392 and $205,298 in deferred payments in 2001 and 2002, respectively.
To paraphrase Dick Cheney's statement Monday, the same guy who decided he could keep his ill-gotten gains from Iran if he liked them is now telling you to oppose the deal in Iran with respect to their nuclear program.
Don't believe it.


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Jon Perr
Jon Perr is a technology marketing consultant and product strategist who writes about American politics and public policy.

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