Pentagon launches Halliburton probe

WASHINGTON, Feb. 24 (UPI) -- Houston's Halliburton has become the target of a criminal fraud investigation by U.S. military analysts, the New York Times reported Tuesday.

Pentagon officials said the giant oil-services concern is being investigated for "potential overpricing" of fuel taken into Iraq from Kuwait by one of the company's subcontractors.

The inquiry focuses on Halliburton unit Kellogg Brown & Root, which is also being investigated by the Kuwaiti legislature.

The corporation has been under fire since the disclosure in December that Pentagon auditors had found evidence the company had allowed a Kuwaiti subcontractor, Altanmia, to overcharge the government at least $61 million for fuel shipped into Iraq from Kuwait.