Bush and Cheney face scrutiny in financial scandals

Some financial skeletons are starting to rattle in the cupboard for both President Bush and Vice-President Dick Cheney, increasing the political danger to the Republican Party posed by the series of accounting and insider trading scandals.

The Vice-President's potential embarrassment is the most recent, revolving around alleged accounting irregularities at the Halliburton oil services company between 1998 and 2000 when Mr Cheney was its chief executive.

Halliburton is said to have massaged its figures by booking more than $100m of disputed costs as revenues in statements approved by Andersen, the accounting firm convicted of obstruction of justice in the Enron affair.

Mr Cheney's office has refused comment on the matter, but Harvey Pitt, chairman of the Securities and Exchange Commission (SEC) watchdog body, has been been forced to make clear that the SEC will examine the Halliburton allegations without fear or favour.