Halliburton Moving HQ To Dubai
theodp writes "Much-maligned defense contractor Halliburton is moving its corporate headquarters from Houston to Dubai in the United Arab Emirates. Dubai's friendly tax laws will add to Halliburton's bottom line. Last year the company earned $2.3B in profits. Sen. Patrick Leahy called the company's move 'corporate greed at its worst.' Halliburton, once headed by VP Dick Cheney, has been awarded contracts valued at an estimated $25.7B for its work in Iraq."
Honestly, given the companies past alleged illegal/unethical behavior, the first thing that came to my mind was.... "what is coming down the pipe that they are trying to avoid?" Specifically, by moving the corporate HQ out of the country, are they avoiding some potential legal action because of illegal or unethical corporate behavior? After all we do know about lots of no-bid contracts they were awarded, not to mention the overcharging of contracts and more. It should also be noted that Haliburton is trying to off-load KBR. But fundamentally, regardless of ones political bias, even if there is no forthcoming news of illegal activity, because this corporation has benefitted so much from contracts awarded by the US government, moving off shore to avoid paying US taxes is simply an additional insult.
P.S. Remember when Cheney refused to sell his Haliburton stock when appointed VP? He also resisted placing it into a blind trust and if I remember correctly, continues to receive compensation from Haliburton. Also, the content of Cheney's energy task force demonstrated that companies (Haliburton included) had direct input into the official federal energy plan, effectively allowing corporations to dictate US policy.
Visit Jonesblog and say hello.
Per Wikipedia (either as Dubai or as the United Arab Emirates).
Dog is my co-pilot.
What of data retention laws? It's more difficult to audit their paper trails when their HQ is in Dubai than if it were in New York. Minimum wage laws for the average janitor are probably a little more exploitable.
Heck, with all of the crap which has been going on lately, it may even be a security move: in that the execs may actually feel safer in Dubai from the revenge of the people they've ruthlessly swindled in the US.
the NPG electrode was replaced with carbon blac
Does anybody know whether Vice President Cheney has purchased a home in Dubai yet? Between this and the Dubai Ports World deal, the GWB administration seems to be trying to set up a cushy job there for someone.
http://alternatives.rzero.com/
This is from a company who's been dealing with Iran on a pipeline with a very thinly veiled subsidiary in the caribbean. Really, truth is more complicated and stranger than fiction.
Leave the gun, take the cannoli -- Clemenza, The Godfather
NPR says they aren't moving their headquarters, just opening up another one. This of course calls into question the definition of "headquarters," but there seems to be conflicting information. The linked article's alarmism is from yesterday, for what it's worth.
Now, I'm going to take a chance on this that the information on NPR today was accurate, namely:
A second local "headquarters" will be set up in Dubai, and the CEO will reside there.
The current "headquarters" will remain in Houston, TX.
The Dubai office is to get closer to the action and get some PR separation from us dirty Americans
The corporation will still be registered, and taxable, in the US. Changes to the laws make offshoring more difficult, including needing to have 10% of the Halliburton workforce located in Dubai in order to swith their corporate tax liabilities out of the US. Given the size of Halliburton, that's likely not going to happen.
Finally, the major support contracts for the US military are held by a subsidiary of Halliburton which will be spun off as an independent US corporation next month.
Now, one final disclaimer: this is all from memory based on a short bit on te radio. Feel free to fill in the blanks and correct the errors (be they in my memory or by the reporting staff at NPR).
Is it just my observation, or are there way too many stupid people in the world?
You conservative appologists - Clinton - impeachment for lying about getting blown by an intern. Bushes criminal cronies looking for an extradition free home after fu**ing the whole country.
Leave the gun, take the cannoli -- Clemenza, The Godfather
what's more sensible than an *oil company* relocating to the *middle east*? Dubai isn't just some random village in the middle of nowhere, it's a major economic hub http://en.wikipedia.org/wiki/Dubai
A lot of people have mentioned the Halliburton contracts in iraq, but Halliburton is spinning off it's military division anyway and is likely to be distanced from iraq. Aside from that, I don't think anyone at Halliburton takes the notion seriously that they will be sued when an ex-CEO is practically running the country... if they were ever afraid of that the abuses wouldn't have happened in the first place.
Also, a bunch of people have mentioned criminal charges. A lot of the problems with Halliburton, Halliburton can't really be held responsible, since the problems originated in the fact that we negotiated such crappy contracts with them. If you're contract has holes in it, you're pretty fucked when it comes to trial.
Maybe we should consider rethinking their contracts as we did the Dubai port management deals. Companies that are based outside the US are clearly not as favorable in terms of our security - at least in the eyes of congress.
Listen, I'm not a fan of Halliburton screwing over the American taxpayers. I'm also against their huge no-bid contracts.
But as Slate's "Explainer," well, explains, Halliburton "is still incorporated in Delaware and remains subject to U.S. law and taxes." The article goes on to say that Halliburton would have a hell of a time incorporating in Dubai, but moving its workforce overseas is not out of the question.
After all, 55% of the company's business comes from the Eastern hemisphere. This move makes perfect sense, given their long-term business plans.
PS: The company's defense component, KBR, is set to become its own company. Halliburton's new HQ should not affect KBR.
http://www.slate.com/id/2161652/fr/rss/
They want the HQ to be closer to the majority of the fields they operate and to the bulk of their customers, which is Asia. Their main business is "oil services", mind you. And the biggest oil fields are around the Gulf...
Not sure, why all this is /. material, though...
In Soviet Washington the swamp drains you.
its that you can build two headquarters, but thats usually when your first one is about to be overrun
And the reason why Slashdot is reporting on this is?...
It's one thing to cover major political stories here, but this is silly.
How can we continue to believe in a just universe and freedom to eat crackers if we have no ale?
In the interest of national security, no company based outside the US should be given any US defense contracts. Period. I bet the Democrats could get that passed as a law.
This post expresses my opinion, not that of my employer. And yes, IAAL.
When we read histories of wars we often read about the actions and affiliations of governments and armies. Very rarely do we read histories of wars which contain detailed breakdowns of the actions and affiliations of business and banks during the same period.
Create debt, maintain debt, keep people in debt, work those people until they die of debt.
99% of everything else, from suicide bombers to international embargoes, is just PR (running interference, Kansas City Shuffle, sh*tter tennies) to keep the citizens from realizing how deep into debt their political representatives are selling them.
the NPG electrode was replaced with carbon blac
I'm ululating in the street with joy as my wife dances in her burka.
Leave the gun, take the cannoli -- Clemenza, The Godfather
Maybe I just hang out too much with the anti-war crowd but the only explanation that really makes sense to me for why Bush decided to invade Iraq is that Bush had friends in the oil industry that wanted access to Iraq's oil.
Every other explanation for why Bush decided to invaded is inconsistent with other considerations.
Obviously, the Bush administration has given a lot of justifications for invading Iraq. None of the justifications make sense when I actually think about them in detail. Some people claim that Bush is just really stupid but I have a hard time believing that that's the case. After all, Bush was smart enough to get himself elected to USA president twice.
In the end, I have to conclude that Bush's decision to invade Iraq was really about Bush helping out his friends in the oil industry. What puzzles me is that so many people just accept Bush's other justifications - even congress. Do members of congress know Bush is lying but they don't think it's politically expedient to call Bush on it. What about the news media? Do they know Bush is lying but they figure it makes a better story to pretend he's not? What about the general public? Don't they recognize the inconsistencies?
And don't even get me started on the general public's support for massive deficit spending...
Try plane flights from Houston to Hong Kong, Dubai, Beijing, etc. The CEO wants to be closer to the action so he's moving the HQ. I'm sure the decision was a bit more complex than that, but that's the gist of it.
This is such a non-story.
The US government should offer the advice that this move is not a good idea. If they leave any and all remaining assets (and any profits) will be taxed 500% for 10 years and ALL contracts will be canceled as they will become a foreign corporation and cannot have contracts that may/do have implications for national security.
To make things fair, these and more rules should be applied to any US company that leaves.
On another note, what does this topic have to do with the usual technology issues on Slashdot?
It does make sense to minimize the time zone difference involved.
For instance, if there has to be an urgent phone call between a CEO of an oil services company, and the head of a sovereign nation that retains both de facto and de jure control over resources that are increasingly difficult to find across the world, and somebody is going to be inconvenienced by the time -- I don't think it's going to be the emir who's getting woken up at 3AM to talk business unless it's really, really an emergency.
Only the dead have seen the end of war.
Am I the only one wondering how in the world this got posted on Slashdot? This just seems like bait for a flame war. Granted, there's plenty of debate to be had on the issue--but this is Slashdot, how? Would it have made the headline if it were Nabisco?
It's hard to tell the cool to chill, my favorite hotel room has a view to an ill.
The US tax base paid for the bombs that blew the hell out of the middle east, now they're paying billions of dollars to a big company to fix the middle east, and people are complaining that the taxes on the profits being made by the big company are going to the middle east instead of remaining in the US.
Words fail me.
-1 Uncomfortable Truth
Why is it greed for a company to move its headquarters to a place that will take less money from them in taxes? If the company can still do everything it needs to do for its shareholders in the new location, it would irresponsible for it NOT to make the move. The company's purpose is to maximize value for its shareholders, not passively sit around and hope to send more money to the U.S. government.
I know that a lot of people have accused Halliburton of wrongdoing on other issues, but this issue is completely unrelated to those charges. The previous charges seem to be a bit vague at times, and I don't have any opinion about them one way or the other, because I don't know the facts. But on the issue of saving money on taxes by moving an office, the company is completely justified in making the move. I would recommend any company do the same thing under similar circumstances.
David
Funny you should bring this up. The UAE is in the process of building a multi-multi-billion dollar office, retail, entertainment development right on the water's edge. Only problem is it's not much higher than sea-level. From what I understand the sea levels don't have to rise much before they'll need hip-waders to walk into the buildings.
Leave the gun, take the cannoli -- Clemenza, The Godfather
"This just seems like bait for a flame war"
Exactly. Post something you know will create controversy and watch your readership go up. No doubt many others saw Haliberton on their RSS feed and clicked the link just like I did to see what they where up to. This is a good story for the bottom line of OSTG. It's no different than how the nightly news operates. Comparatively, by comment numbers, this article has done much better than many of the other front page stories... Which is what really matters at the end of the day for the business folks at OSTG. If slashdotters hated Nabisco we would likely see stories about them too. Nabisco does not create controversy within the nerd population nor does it entice prolonged discussion, flame wars and the sort however.
I dunno, did Nabisco's management use its high-ranking government cronies to rake in billions of dollars in criminally-constructed no-bid contracts?
Crumb's Corollary: Never bring a knife to a bun fight.
What's the difference between being a patriot of the private state of Halliburton and being a patriot of the United States of America? Numbers? A greater degree of moral certitude?
Nerd rage is the funniest rage.
Uh huh. And are they changing their name? Ahalibartan or something like that? Otherwise it's like Coca Cola trying to distance itself from its American image.
Loose lips lose spit.
As as American who has traveled extensively throughout the Middle East, Dubai is perhaps one of my favorite cities anywhere. It is a world class city with all the "modern" things you'd want and a touch of class that makes it a true gem.
I know the issue isn't which city is better, but Dubai is like a New York. If you're in the financial business, go to Manhattan. If you're in the tech world, go to san Jose. If you're in the oil business with 90% of your work in the middle east, go to Dubai. I see nothing wrong with this, especially if they say they are going to pay US taxes and remain a US corp.
I'm not a troll, but I play one on Slashdot.
It is a world class city with all the "modern" things you'd want and a touch of class that makes it a true gem.
A very large population of indentured slaves, for example.
Halliburton was founded in 1919.
& q=l&c=
2 /the_curse_of_dick_cheney
By 1982, it had 115,000 employees. A company with over 100,000 people is very much "something", not "nothing".
Cheney was Secretary of Defense in 1989.
So you, stephanruby, are either a frickin liar or just plain ignorant.
You're right. I'm a complete dumb ass. I tried, but couldn't substantiate the details of what I asserted.
The Halliburton stock did almost hit rock bottom, but that was when Cheney was the Minority Whip -- a couple of years before he became Secretary of Defense.
http://finance.yahoo.com/q/bc?s=HAL&t=my&l=on&z=l
Also, my claim that Dick Cheney knew about the asbestos liability time-bomb before he got into asbestos seems to be contradicted by this otherwise very insightful anti-Cheney article.
Also, my claim that Dick Cheney's first job in the private sector was as CEO of Halliburton was false. He had worked in the Private Sector once before.
http://www.rollingstone.com/politics/story/645042
All in all, I got outraged and I got lazy, that's why I wrote so much unsubstantiated gibberish in my previous post.
Care to back that one up? Bahrain potentially has that situation, as might Saudi Arabia. However, the prince who runs UAE is exceedingly cautious of the way his country is viewed by the outside world, and I don't think your statement is accurate.
I'm not a troll, but I play one on Slashdot.
The UAE labor law does not cover domestic workers. Many are physically and sexually abused. Stories abound of housemaids who try to escape their employers' homes knowing neither the address nor the phone number, nor even the family's full name. Some end up in hospitals, victims of rape. Rarely is an employer prosecuted. Authorities are threatening to shut down Dubai's only shelter for women and children survivors of violence, including women domestic workers who have suffered abuse by their employers. The best that an abused domestic worker can hope for is an airline ticket back home and a lifetime of shame. Which also had this quote which reminded me of our own H1B indentured servants A Qatari citizen--the sponsor--procures a visa for a worker and thereby controls that worker's movements for the duration of his or her contract while in Qatar. Just because we're not in the middle east, dosen't mean we don't like to enslave indiana tech workers. Check out the H1B.. it's bloody evil.
-GiH
Isn't it fascinating that the vast majority of rightwing bullshit talking points are coming from "Anonymous Cowards"? Maybe we should re-assign that to be "fascist thugs" after Mussolini's little unofficial minions, eh? Halliburton is positioning itself for the incoming civil and criminal actions... they are spinning off all defense "support" contracts into a separate company (collecting all potential loss items into one bag) after already taking the profits. Two headquarters is, as a previous poster stated, inherently absurd unless you're expecting HQ#1 to be zerg'd. The US will be damned lucky if it gets a fraction of the completely missing billions of dollars back after all this is done. What we have here are a few corporations (or actually a very small group of people of whom the Bushes and Cheneys are part) who have manipulated themselves into power, looted the US budget/treasury, damaged the governments ability to conduct oversight, and are now scampering out the door. Worse, they have fooled enough of the social and fiscal conservatives into following them for long enough to pull this scam. At this point, anyone supporting these hooligans are either embarrassed and defensive, have a financial stake in it, ... or roadway gravel stupid.
(signed, former republican -- these people make Nixon look saintly)