KBR Secret Indemnity Agreement Signed By Army Chief Tainted In Enron Scandal
“It is not possible to determine the actual or estimated cost to the Government as a result of the use of an indemnification clause since the liability of the Government, if any, will depend upon the occurrence of an incident related to the performance of the contract,” White wrote. The agreement was necessary to “facilitate the national defense,” he said.
White, currently a partner at DKRW Energy, did not respond to HuffPost’s request for comment.
White maintained he knew nothing about Enron’s efforts to manipulate energy prices in the California power crisis in 2000 and 2001. His sale of millions of dollars in Enron stock in 2001 came under investigation by federal authorities, but no charges were ever brought. White said he was required to sell his stock under government ethics rules. The Pentagon’s inspector general also investigated whether White and his wife used a military jet for personal travel.
The 2003 agreement between the Army and KBR protects the contractor from financial costs associated with unusually hazardous risks including the “sudden or nonsudden release of hydrocarbons or other toxic or hazardous substances or contaminants into the environment.”
A KBR spokesman previously told HuffPost the company “is confident that it will prevail in enforcing the U.S. government’s legal obligations.” One lawyer representing soldiers in their lawsuit against KBR said the agreement amounted to a “pretty good bailout” for the company.
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