Source: Bloomberg

May 4 (Bloomberg) -- Billings from KBR Inc., the Army’s largest contractor in Iraq, constitute the “vast majority” of 32 cases referred by government auditors for criminal investigation, the Pentagon’s top auditor said today.

April Stephenson, head of the Pentagon’s contract audit agency, told the Wartime Contracting Commission that in the agency’s history, “I don’t think we are aware of a program, a contract or a contractor that’s had this number” of referrals.

KBR, then a unit of Halliburton Co., won a contract in December 2001 to provide worldwide support for U.S. troops’ housing, food, laundry and fuel services. The contract’s value grew to $31.7 billion, with most of the work being done in Iraq and Kuwait.

The referrals for potential fraud started in February 2004, almost a year after the U.S.-led invasion of Iraq, with the most recent referral in March, according to a chart in Stephenson’s written testimony.

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