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New York City Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds, has filed shareholder proposals calling on the Boards of Directors at KBR, Inc. and Halliburton Company - two of the largest government contractors in Iraq - to establish a committee of independent directors to review allegations of financial misconduct and human rights abuses made against the companies’ operations in Iraq.

“It would be unconscionable, and downright unpatriotic, for any American company to profit from the war in Iraq through financial misconduct at the expense of the American taxpayers, and to conduct business with disdain for human rights and indifference to the honorable service and ultimate sacrifice of our military men and women,” Thompson said.

“As large defense contractors in Iraq, KBR and Halliburton should aspire to be leaders of corporate responsibility and establish standards of best practices for other companies to follow. Instead, numerous serious allegations of financial misconduct and human rights abuses have been made against both companies. These allegations are extremely troubling and, at minimum, should be investigated by a board committee of independent directors, which is exactly why the Pension Funds have filed this proposal.”

The proposal filed with KBR - a Houston, TX-based company and the largest U.S. government contractor working in Iraq - was sponsored by the New York City Employees’ Retirement System (NYCERS), Teachers’ Retirement System for the City of New York (TRS), New York City Police Pension Fund, New York City Fire Department Pension Fund and the New York City Board of Education Retirement System (BERS).

NYCERS and BERS sponsored the proposal submitted to Halliburton, also of Houston, TX, and another large contractor working for the U.S. government in Iraq since 2003.

The proposals note that the Defense Department and members of Congress have accused KBR and Halliburton of financial irregularities relating to the company’s contractual obligations, including inflating prices for delivered goods, overcharging and falsely charging for services not rendered.

KBR and Halliburton also have been accused in civil actions, filed in the United States, of human rights abuses in regards to the treatment of employees, including collusion in suppressing evidence of abuse and human trafficking.

The Pension Funds hold 516,094 shares in KBR worth $7,612,386 and 1,072,513 shares in Halliburton worth $18,490,124.

The proposals call for the companies to “establish a committee of independent directors to review allegations of financial misconduct and human rights abuses on the part of company and its employees in Iraq” and to report the findings to shareholders as well as “recommendations for improved oversight of the company’s international operations.”

Besides Thompson, the Pension Funds’ trustees are:

NYCERS: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

TRS: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Thomas Sullivan, Lieutenants Benevolent Association; and, Roy T. Richter, Captains Endowment Association.

Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; John Dunne, Captains’ Rep.; John J. McDonnell , Chiefs’ Rep., and James J. McGowan, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

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