US Army suspends Halliburton decision

The US army has said it has suspended for now a decision to withhold some payments to Halliburton, its biggest contractor in Iraq.

The army had earlier said it would be withholding 15% of payments on future bills to Halliburton, once run by US Vice-President Dick Cheney.

One of its subsidiaries has featured in auditing disputes with the Pentagon.

It allegedly overcharged on contracts to supply accommodation, meals and fuel to troops in Iraq and Kuwait.

No official reason has been given for the change of heart but it is thought US defence officials decided they wanted to have another look at the potential implications of the move.