Halliburton has claimed the overcharging can be traced to a Kuwaiti sub-contractor, although the Wall Street Journal said the kickback disclosure is the first firm indication of corruption involving U.S.-funded projects in Iraq and raises new questions about Halliburton's dealings.
The Pentagon inspector general is already examining separate accusations that the subsidiary overcharged the government by $US61 million for gasoline imported into Iraq from Kuwait under a contract with the Army Corps of Engineers.
The company said it discovered the improper payments to the employees in a routine internal audit and immediately reported the results to Defense Department officials. Halliburton did not name the Kuwaiti company.
A discovery of kickbacks could expose the company, formerly headed by Vice President Dick Cheney, to hefty fines and other punishments such as potential fraud charges.
