Monday, December 28, 2009

Kuwaiti Freight Company In Discussions On Fraud Claims

Agility – ‘No Guarantees’ on Resolution
Shipping News Feature

KUWAIT / USA – Kuwaiti freight and logistics company Agility has confirmed rumours that it is in negotiations with the U.S. government concerning a settlement over the ongoing fraud case against it, but has stated that ‘there are no guarantees that these negotiations would lead to a solution’.

According to reports in the Kuwaiti media the company is offering $600 million to settle the case, which has damaged Agility’s reputation, ability to acquire new business and seen its share value drop by three percent.

Agility is facing a court case over allegations that it overcharged the U.S. army on its contracts to supply foodstuffs to soldiers in Iraq, Jordan and Kuwait. The original values of the company’s deals with the U.S. military were valued at $8.5 billion and with the current allegations against it Agility is impeded from bidding for new governmental contracts.

The controversy has already seen defence contractor DynCorp drop Agility last week as a subcontractor in a U.S. Army contract that had been agreed upon. Agility states that they are looking at legal options over the decision.

Agility also faces the prospect of having to pay substantial damages if found guilty of defrauding the U.S. under the False Claims Act of up to twice the value of the losses to the American government.

Agility strenuously denies that it has committed any wrongdoing.