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"Halliburton, under scrutiny for its contracts in Iraq, would receive an extra $1.5 billion as part of the Bush administration's additional war spending proposal for fiscal 2005, a senior US Army budget official said.

Halliburton, once led by Vice-President Dick Cheney, is the largest corporate contractor in Iraq and has drawn fire for its no-bid contracts there, with auditors charging its Kellogg Brown and Root (KBR) unit overcharged for some work.

The Army's portion of a $81.9 billion supplemental spending package earmarked the extra funding for KBR under its LOGCAP (Logistics Civil Augmentation Programme) contract to provide a wide range of services to US troops in Iraq, the official said. The contract covers food and laundry services, trash collection, mail delivery and other support services.

If approved by Congress, that would bring the total spending under KBR's LOGCAP contract to about $6 billion in fiscal year 2005, about the same amount spent a year earlier, said the offical."