Kuwait Agility to pay $600M in DoD fraud case (updated)
Tarek Sultan, Chairman and Managing Director of Agility. He looks great in white. I wonder how he would look in an orange jumpsuit?
Update: Apparently The April 8th deadline for coming to some sort of agreement between Agility and the USG has passed and from what I’ve been told no agreement has been made.
Kuwait Agility to pay $600 mln in fraud case-paper
Fri Apr 9, 2010
KUWAIT, April 9 (Reuters) – Kuwait’s logistics firm Agility (AGLT.KW: Quote, Profile, Research) is to pay the U.S. government $600 million to settle fraud charges, an Arabic-language daily reported on Friday, citing unnamed sources.
Agility and the U.S. government reached a preliminary agreement and the sum would be paid over three years, Kuwait’s Al-Jarida newspaper said.
The Kuwaiti firm, formerly Public Warehousing Co K.S.C., is in talks to resolve an indictment accusing it of overcharging the U.S. Army on supply contracts in Iraq, Kuwait and Jordan.
The company has delayed the release of its financial results until Sunday and requested a trading halt on its shares, pending clarity on talks. [ID:nLDE63504U]
Al-Jarida said the settlement will mean the return of U.S. government business to Agility, but it was not clear yet if that would be in full or in part.
It said the settlement could be announced “in a day or two.”
“It (the settlement)… could include some slight changes, especially regarding the return of all contracts or the majority of them,” the paper said.
Agility was not immediately available to comment. (click HERE for original aritcle)
Other Related Posts From Ms Sparky
- Kuwait logistics firm Agility pleads not guilty to US fraud charges
- US court denies key petition by Kuwait’s Agility (Updated 07-22-2011)
- Court rules against Agility in fraud case appeal
- Court ruling a setback to Kuwait’s Agility (Updated 03/30/2011 with link to court ruling)
- Kuwait’s Agility expects tough 2011
Friday, April 9th 2010 at 6:59 am |
If the USG awards the next Subsistence Prime Vendor to Agility their profits alone will far surpass the settlement total of $600M. A no-brainer for Agility. A significant amount of money, but I want to know what are the other details (probation, jail time, changes in the current contract, USG oversight and policing, etc.). Is the USG truly going to slam Agility or will this simply be a slap on the wrist, then back to work as usual? I’m afraid the latter.
Sunday, April 11th 2010 at 8:43 am |
The accurate settlement amount is $750M…..the problem with the settlement is in working out the schedule for payment, since it is not a petty cash type of deal…..call it a catch 22 of sorts…and yes…Agility could still make back its fine – but not on PV alone in a timely enough manner to secure financial support needed to repay such a large amount…
Friday, April 9th 2010 at 12:38 pm |
The U.S. government is pursuing Agility in 3 different ways:
1) a civil False Claims Act lawsuit:
http://www.contractormisconduct.org/index.cfm/1,73,222,html?CaseID=1218
2) criminal prosecution:
http://www.contractormisconduct.org/index.cfm/1,73,222,html?CaseID=1057
and
3) suspension from federal contracting:
http://www.contractormisconduct.org/index.cfm/1,73,222,html?CaseID=1228
It will be interesting to see how this thing gets settled. I just checked EPLS, and it shows that, as of today, Agility and 120 of its affiliates/subsidiaries are STILL subject to the Nov. 16, 2009 suspension. I also checked the civil and criminal actions on PACER and there hasn’t been any activity in either for about a month.
Friday, April 9th 2010 at 1:20 pm |
Thanks Neil!! Please keep us posted. I have to give KUDOS to POGO (Project on Government Oversight)!! POGO does great work and I have links to you all over the place.
If you haven’t been there do youself a favor and go check them out. http://www.pogo.org They follow and report on all kinds of government contractors and government fubar’s.
Sunday, April 11th 2010 at 8:41 am |
I’m not sure who is to blame more – the greedy bastards at Agility or the greedy bastards of the US Government. There are MAJOR problems within the contracts that DSCP/DLA are still not addressing – and despite being told by more than one person years ago – refused to address, allowing this to happen. As someone very closely associated with the internal workings of PV – and Agility – can assure you that many other PVs should count their blessings that those running the contracts are more “arrogant” then “ignorant” and would not dare open up the entire system for a protocsopical exam – which is what is needed.
But whenever did the government admit to doing anything to “make its own bed”? And – for those that think they know all – DSCP gets 13% of all of the contract….in time…I hope to have my chance to generate many “red faces” around the full table…but alas…one in my position has not the resource$$$$$ or political hack friends to mount such a clarity driven agenda…time will tell…but do tire of those from the outside whom think they know what is what – when they know “squat”..
Monday, April 12th 2010 at 12:08 pm |
The Govt/Agility Deal collapsed over the weekend. Superceding indictments were offered today in court for Agility Holdings and KSCC. And – Agility offered a significant income to its shareholders in its quarterly announcement over the weekend – flushing the coffers before bailing out?
Sunday, April 25th 2010 at 10:08 am |
Great link to an article I found on the net about Agility. http://www.diggersrealm.com/mt/archives/001258.html
Wednesday, July 28th 2010 at 6:02 am |
All I have to say is:
http://www.reuters.com/article/idUSLDE66R08D20100728
Evidence is everything!
Good for Agility DGS, I am proud of them for standing their ground. Who has the egg splattered all over their face now MS Sparky?
Wednesday, July 28th 2010 at 7:19 am |
Egg on face?? We reported that Agility DGS was indicted and we reported this morning the charges have been dropped.
http://mssparky.com/2010/07/agility-u-s-unit-fraud-charges-to-be-dropped/
Wednesday, July 28th 2010 at 12:11 pm |
Anonymous,
You obviously didn’t read or don’t understand the press release and indictments. Of over 100 PWC/Agility companies, 1 entity may be removed from the EPLS. You may also be one of the brilliant KSE investors that ran to purchase Agility stock today thinking they were back in business with the USG. Sorry to inform you, but DGS Holdings has nothing to do with the Prime Vendor indictments, hence being removed from the EPLS and Agility will continue to be suspended, most likely for the long foreseeable future.
You, my poorly informed poster, are the one with egg on your face. Ms Sparky simply posted the update. Anonymous. Are seriously attempting to defend PWC/Agility? You must have avoided reading the lengthy indictments and simply believe whatever the Agility koolaid tells you. You are now classified as an anonymous sheeple.
Good day! I said good day!