Kuwait’s Agility settles US criminal case, could soon bid for government contracts

Kuwait logistics firm Agility has announced it may soon be free to bid for US government contacts after reaching a settlement in a criminal case involving US government food supply contracts.

Agility was accused of overcharging the US army by billions of dollars in the contracts, linked to the US invasion and occupation of Iraq, that the company held from 2003 to 2010.

The first criminal case relating to the accusations was filed in November 2009, leading to the company’s replacement as a supplier and its barring from new government contracts while the case was pending.

In a statement explaining the settlement, the company said it agreed to plead to a misdemeanour in connection with a single invoice valued at $551.

It added that this was a minor offence unrelated to any of the original criminal charges and required it to pay a maximum of $551 in restitution but no criminal fine.

However, the agreement to settle the criminal portion of the case is conditional on Agility signing a separate agreement with the US Department of Justice resolving a pending civil case.

Any agreements will also be subject to final District Court approval.

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“A settlement, once finalised, will resolve all outstanding criminal issues with the US government in connection with the Prime Vendor contracts for Agility, its affiliates, employees, directors, and officers,” the company said.

“The civil proceedings with the US Department of Justice in connection with the Prime Vendor Contracts remain pending.”

The firm also entered into a separate agreement with the Defence Logistics Agency (DLA) resolving all pending and potential administrative claims between Agility and DLA involving the Armed Services Board of Contract Appeals.

This will end Agility’s suspension from federal government contracts, conditional upon a further deal with the US Department of Justice resolving the civil case.

“These agreements, once made effective, will allow Agility to resume pursuit of new US government contracts. Under the terms of the settlement, the US government has agreed to remove Agility and its subsidiaries and affiliates from the list of suspended companies on its System for Award Management (SAM),” Agility said.

In January, Agility predicted profit and revenue growth this year due to rising emerging market demand for pharmaceuticals, consumer electronics and consumer goods.

Read: Kuwait’s Agility expects logistics profit, revenue growth in 2017