Pentagon Overpaid Billionaire Oilman By Up to $200 Million, Audit Finds

Posted: March 18, 2011 in US News

Fox News
March 18, 2011

The Defense Department overpaid a billionaire oilman by as much as $200 million on several military contracts valued at nearly $2.7 billion, an internal audit has found.

The Washington Post reported that the Defense Department’s inspector general estimated that the department paid Harry Sargeant III, a Florida businessman and once-prominent Republican donor, “$160 [millions] to $204 million more for fuel than could be supported by price or cost analysis.”

The three contracts were awarded under conditions that effectively eliminated other bidders, the study reported.

Rep. Henry Waxman, D-Calif. led a probe against Sargeant in October 2008, accusing him of using his close relationship with Jordan’s royal family to secure exclusive rights over supply routes to U.S. bases in western Iraq, according to the Washington Post.

Waxman also accused Sargeant and his company of price gouging and “engaging in the worst form of war profiteering,” the newspaper reported.

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