US charges Agility with military food supply fraud

Time:2009-11-20 Browse:14 Author:RISINGSUN

KUWAIT`s Agility has been charged by a US grand jury with conspiracy and fraud in fulfilling US$8.5 billion in Pentagon contracts to feed American troops in Iraq, Kuwait and Jordan.
The charges allege illegal price inflation false statements and false claims made by Public Warehousing Co (Agility`s former name) in that the company overcharged the military for food.
Agility executives said the charges are without merit and would not impact the company`s current contracts with the American government.
Agility said it has "worked with the government to seek a mutually agreeable resolution to a contract dispute and the company and is surprised and disappointed the government has decided to take these actions".
Said the Agility statement: "PWC`s service has been timely, reliable and cost effective throughout its work on these competitively awarded contracts and its performance has been unparalleled. The prices it charges have been negotiated with, agreed to, and continually approved by the US government since then. The government has consistently found PWC`s prices to be fair and reasonable."
Agility said charges instigated by Kamal Mustafa Sultan, owner of Kamal Mustafa Sultan Company, "who has a long history of strong animosity towards PWC, its officers and its employees," and "a financial interest" in undermining Agility`s relationship with the US military.