Thursday, May 25, 2017

Kuwaiti Logistics Mainstay Looks to Resolve Issues with US Government

Settlement Will Allow Agility to Bid for Contracts Once Again
Shipping News Feature
US – KUWAIT – Having been embroiled in a nearly decade long criminal case involving US government food-supply contracts, Agility has entered into a settlement agreement in the hopes of once again bidding for US government contracts. Once the largest supplier to the US army in the Middle East, the Kuwait-based logistics firm were alleged to have defrauded the military of millions of dollars between 2003 and 2010, during the war in Iraq.

In the criminal portion of the case, Agility agreed to plead to a misdemeanour in connection with a single invoice valued at $551 (KD 167). The misdemeanour is a minor offense, unrelated to any of the original criminal charges, requiring Agility to pay a maximum of $551 (KD 167) in restitution, but no criminal fine.

Agreement to settle the criminal portion of the case is conditional upon Agility signing a separate agreement with the US Department of Justice (DOJ) resolving the pending civil case captioned United States of America, ex rel, et al. v. the Public Warehousing Company, et al., Case No. 1:05-cv-02968-TWT. Any agreements will be subject to final District Court approval.

A settlement, once finalised, will resolve all outstanding criminal issues with the US government in connection with the contracts for Agility, its affiliates, employees, directors, and officers. The civil proceedings with the DOJ in connection with the contracts remain pending.

Separately, Agility also entered into settlement agreements with the Defense Logistics Agency resolving all pending and potential administrative claims between Agility and DLA involving the Armed Services Board of Contract Appeals, and resolving Agility’s suspension from federal government contracting.

The DLA agreements are conditional upon Agility signing a further settlement agreement with the US Department of Justice resolving the pending 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) database, formerly known as the Excluded Parties List System (EPLS), within 60 days.