WASHINGTON (AFP) - Auditors have asked the Pentagon's inspector general to investigate information they received about suspected irregularities in a Halliburton contract to restore Iraqi oil and make fuel purchases, Pentagon officials.

It was unclear what information triggered the referral by the Defense Contracts Auditing Agency but a draft audit disclosed last month concluded that US government had been overcharged by some 61 million dollars for oil purchased through a Halliburton subcontractor in Kuwait.

"A referral made on January 13, 2004 by the Defense Contract Audit Agency basically resulting from information that they received is believed to warrant an investigation by the DoD (Department of Defense) inspector general," the official said, speaking on condition of anonymity.

Another official said the referral was related to "suspected irregularities related to restore Iraqi oil fuel purchases."

Halliburton's subsidiary, Kellog Brown and Root Services, was awarded contracts to restore Iraq's oil facilities, and provide logistical support for US forces in Iraq and the surrounding region.

News that a draft audit on December 5 had found irregularities in both contracts caused a storm in part because of the company's close ties to the administration through Vice President Dick Cheney, its former chief executive.

President George W. Bush told reporters December 12: "If there is an overcharge, like we think there is, we expect that money to be repaid."

But Halliburton, which has vehemently denied the allegations, appeared to have been vindicated by the head of the Army Corps of Engineers, who declared on December 19 that KBRS had provided data that indicated "the fair and reasonable price of these services."

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