The Pentagon and Justice Department are launching an investigation into charges that Halliburton overcharged the U.S. military in Iraq as part of a no-bid contract it received from the government to rebuilt Iraq's oil infrastructure according to a report published in today's 'Wall Street Journal.'

Part of the probe by the Justice Department is examining whether the government showed favoritism to Halliburton when awarding no-bid government contracts. Vice-President Dick Cheney was the CEO of Halliburton before the 2000 election and critics have long claimed that Halliburton has received favorable treatment from the government.

Halliburton officials have denied overcharging the government in Iraq and indicated that their services were billed 'at a fair and reasonable cost given the circumstances.' Halliburton also claims they are cooperating with the Army to prove that it did not overbill the army.

A spokeswoman for Halliburton stated in an e-mail, 'The report fails to take into account the fact that KBR performed an urgent mission at the Army's request and that the mission took place in a wartime environment.'

Halliburton has the potential to make more than $18 billion in business from the Iraq war alone.

There is no date given for the completion of the investigation.