Agility, a Kuwaiti logistics company is in talks with the government of the United States regarding a case of supposed overcharging of the US Defense Department for contracts amounting to over $8.5 billion. The discussions are being held in order to arrange an ‘out-of-court’ settlement regarding the allegations.
Agility was charged by a United States jury in a court in Atlanta on multiple counts for supposedly overcharging the Pentagon. The story is that the overcharging happened by an illegal price hike of contracts regarding food supply.
The allegations are based on three key contracts to supply food items to American troops stationed in Kuwait, Iraq and Jordan. Agility has denied all allegations on overcharging.
Zawya Dow Jones was told by a spokesperson from Agility that the court appearance by the company on December 22, 2009 had been postponed, and he said that a new date had not been set yet.
With the case still up in the air and no settlement being reached, the US Department of Defense has temporarily stalled the giving out any further contracts to Agility. Currently, Agility also does not have any pending government work.
In November, Agility won a contract from the US Agency for International Development (USAID), which entails them managing the receipt, warehousing and re-exporting of food aid and other commodities.
The five-year contract is worth $10 million a year, while the first task at hand for Agility is around $4 million – where the company has to receive and carry out the storage of food aid at Jaciontoport, Houston which will then in turn, be shipped to Djibouti Free Zone in Africa.
