Friday, April 9, 2010

Agility Reported To Be Paying $600 Million To US Government

Paper Reports That Fraud Case to be Settled
Shipping News Feature

KUWAIT – The Al-Jarida, an Arabic language newspaper, today reported that logistics group Agility are to pay the US government a $600 million settlement to resolve an ongoing dispute over allegations that Agility overcharged the American military on supply contracts.

According to Al-Jarida, the settlement, to be finalised in the next few days, will mean that Agility will once again be eligible to bid for US government contracts. The controversy over the accusations had already cost the freight and logistics group, currently the biggest in the Middle-East, a number of contracts with governmental suppliers.

Agility has yet to comment on the story, but rumours of a deal have been rife since the 31st of March when the company announced they were to delay releasing their results for last year until this coming Sunday, along as simultaneously freezing trading in the company’s shares on the Kuwaiti stock exchange.

The company has always emphatically denied the allegations of fraud against it.