Wednesday, August 4, 2010

Logistics Giant vs US Government Takes A New Twist

Agility Fight Back Against Contract Accusations
Shipping News Feature

US – KUWAIT – The case against freight and logistics giant Agility came under the spotlight again last week when, in a surprise turn of events the United States Attorney's office in Atlanta on Monday moved to dismiss an indictment against Agility DGS Holdings, a PWC/Agility subsidiary. We reported the case originally in November last year when Agility strongly denied any misbehaviour by their staff with regard to supplies to US forces.

Representatives of Agility said in a statement to the Handy Shipping Guide that the prosecutors' motives for seeking a dismissal at this time are unknown. However, they say, this request comes after motions filed by Agility DGS Holdings to discover the Government's evidence against it, including Price Negotiation Memoranda, a set of exculpatory materials that the government has worked tirelessly to conceal from the public for over three years. The statement continues:

“As we have consistently maintained since the outset of this litigation, this case should never have been brought in the first place in a criminal court. This case is, at most, a civil contract dispute over the interpretation of a contract drafted by the government.

“One thing that has always been crystal clear is that Agility has provided -- and continues to provide -- exceptional service to U.S. troops and superior value to American taxpayers, working for seven years in a war zone on the largest US military subsistence procurement contract in history. The food contract is one of nearly 130 US government contracts and tenders by Agility and its affiliated companies.

“We remain committed to attempting to resolve this civil contract dispute so that the distraction of litigation is removed and we can continue to focus on our business, including providing the excellent service to the troops that they have come to expect from us.”

In April we broke the news that Anham LLC from Dubai had been chosen to replace Agility as the US supplier of provisions to troops in the Middle East.