Agility settle US food supply contracts criminal case
Agility has settled a criminal case in the United States, allowing it to once more bid on American government logistics contracts.
The case involved food-supply contracts to the U.S. military from 2003 to 2010. The Kuwait-based logistics giant was the largest supplier to the U.S. army in the Middle East during the war in Iraq.
During the execution of those contracts the company was accused of defrauding the military on multibillion-dollar supply contracts.
A criminal suit was filed in November 2009 and Agility lost its coveted role as the main Middle East supplier to U.S. forces and was barred from bidding for any new U.S. contracts while the court case was pending.
That decision hit the logistics company hard. According to analysts, the contracts accounted for around 40% of Agility's revenues and also provided it with a 30% margin.
Agility said in a statement that it had agreed to plead to a misdemeanour in connection with a single invoice valued at $551.
According to the statement, the misdemeanour was unrelated to any of the original criminal charges, so Agility only needed to pay a maximum of $551 in restitution, but no criminal fine.
Agreement to settle was conditional upon Agility signing a separate agreement with the U.S. Department of Justice resolving the pending civil case against the company, it said, adding that any deal would be subject to final district court approval.
Once finalised, a settlement will resolve all outstanding criminal issues with the U.S. government in connection with the prime vendor contracts for Agility, its affiliates, employees, directors and officers, it said.
Civil proceedings with the U.S. Department of Justice in connection with the contracts remain pending, it added.
Separately, Agility said it had settled agreements with the U.S. Defense Logistics Agency resolving 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 agreements were conditional upon Agility signing a further settlement deal with the U.S. Department of Justice resolving a pending civil case.
Once effective, the agreements will allow Agility to pursue new U.S. government contracts, it said, with the removal of Agility and its subsidiaries from the list of suspended companies on its System for Award Management within 60 days.