Thursday, May 30, 2002

Halliburton and Inquiry by the S.E.C. Whether the S.E.C. inquiry will reach Mr. Cheney, who as chief executive had final responsibility for Halliburton's books, is unclear. In a memo in 2000 to his colleagues at Arthur Andersen, which was Halliburton's auditor, the partner who managed the Halliburton account boasted of his close relationship with Mr. Cheney. The partner, Terry Hatchett, said the relationship was so close that Mr. Hatchett had remained lead partner on the Halliburton account even after he moved from Dallas to Tokyo to oversee Andersen's Asian operations. In addition, while he was an executive at Halliburton, Mr. Cheney appeared in a marketing video extolling Andersen's services. Current and former executives at Halliburton have described Mr. Cheney as a hands-off executive who left daily management to David Lesar, a former Andersen partner who at the time was Mr. Cheney's second-in-command. Mr. Foshee said last week that he could not imagine that Mr. Cheney had specifically approved the 1998 change, though he said he was certain that it was approved by Mr. Lesar, who became chief executive in 2000. http://www.nytimes.com/2002/05/30/business/30HALL.html?todaysheadlines