Looks like Agility may buy their way out for $750M
According to the foreign press it looks like Agility is close to negotiating their way to a plea deal to settle the fraud charges filed against them by the US Government. I wonder who Tarek Sultan will sacrifice, if anyone at all, as the person(s) to take the fall and don the orange jumpsuits to join the likes of John Cockerham and others in federal prison. I guarantee these handcuffs won’t be golden!
U.S. wants Kuwait’s Agility to pay $750 mln-report
KUWAIT, April 5 (Reuters) – U.S. authorities want Kuwaiti logistics firm Agility (AGLT.KW) to pay up to $750 million to settle fraud charges but the company hopes to pay less, a Kuwait newspaper said on Monday.
Arabic language daily al-Jarida, citing unnamed sources, said Agility wants to pay between $300 million to $500 million in compensation.
Agility officials could not immediately be reached for comment.
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 Tuesday and requested a trading halt on its shares, pending clarity on talks to reach a financial settlement.
On Monday, al-Jarida said the two parties were negotiating a schedule for repayment and whether Agility will get new contracts with the U.S. military.
A second Kuwaiti newspaper, al-Anbaa, quoted unnamed sources as saying that if talks between Agility and the U.S. government do not reach a settlement this week, the case will go to U.S. courts.
Kuwait, which was the launch pad for the U.S.-led invasion of Iraq in 2003, has become a major logistics base for American forces. (Reporting by Diana Elias; Editing by Amran Abocar)
U.S. Wants To Settle Agility Dispute For $750 Million-Report
Monday, Apr 05, 2010
CAIRO (Zawya Dow Jones)–U.S. authorities want Kuwaiti logistics firm Agility to pay up to $750 million to settle a dispute over U.S. military bills but the firm hopes to pay less, al-Jarida daily reported Monday, citing unnamed sources.
Agility, the Middle East’s biggest logistics company, is seeking to pay between $300 million to $500 million, the paper said. The Kuwaiti firm said March 31 that it delayed announcing its 2009 results in the hope reaching a settlement. It was indicted in November for allegedly overcharging on a multibillion-dollar contract to supply food for U.S. troops in Kuwait and Iraq.
Agility wasn’t immediately available for comment Monday.
Other Related Posts From Ms Sparky
- Kuwait’s Agility denies winning Canadian military contract
- Kuwait logistics firm Agility pleads not guilty to US fraud charges
- Court rules against Agility in fraud case appeal
- Deal or no deal – Feds up the ante in case against PWC/Agility(with link to indictment)
- Kuwait Agility to pay $600M in DoD fraud case (updated)
Monday, April 5th 2010 at 10:13 am |
Well isn’t that lovely! The USG should make Agility pay dearly with a huge fine, prison time for a handful of people, and at least a 1-year suspension that would prevent them from even having a chance of retaining PV, DDKS, and Heavy Lift. Just like with KBR, the USG is talking out of both sides of its mouth. I’ll hold my judgment until I see an official letter from one or both of the involved parties before I believe any of this speculation. Agility’s been touting a settlement since November…….and still nothing. This MAY be different but I hope the DOJ and DLA make them pay out the nose. Standing by for the official news release.
Monday, April 5th 2010 at 10:19 am |
Again this is a drop in the bucket compared to the inflated costs, money hidden by other PVs.
Nobody in USG should claim victory once things are settled with Agility.
Monday, April 5th 2010 at 11:31 am |
I think being strapped to the business end of a camel for a week and serving pork should be included.
Monday, April 5th 2010 at 1:04 pm |
My candidates are:
MG(RET) Daniel G. Monegon. He was Commander, Defense Supply Center Philadelphia, Jul 98 – Aug 00 and Director, Logistics Operations, J-3, Defense Logistics Agency, Fort Belvoir, Virginia, Oct 03 – Oct 05. This is the DSC and Agency which awarded Agility two Primie Vendor Food contracts. This is not an example of the Army values which are paramount to retain public trust in this institution.
LTG (RET) Paul Cerjan. Cerjan was the fixer for KBR who was in charge when I was relieved of my LOGCAP position. He went to work for Agility when it was clear they needed some clout due to their alleged criminal behavior.
In my opinion, the company should be debarred from any future Defense work period. As has been noted, $750 million is just a cost of doing business for them.
Tuesday, April 6th 2010 at 1:42 am |
Cerjan and Mongeon both came on well after the alleged acts of fraud. Highly doubtful either will be in trouble. I do fault Agility for paying Mongeon an $800K bonus for 2009 though. What exactly did this man bring to Agility in 2009? (crickets chirping). Under his leadership DGS has been stricken with incompetent and poor leadership (himself, George Allen, Rich Brooks, Paul Cerjan, Mike Durnan, ……..) leading to all wothwhile employees either leaving in 2007-2008 or their firings in 2009-2010. The value that has been destroyed in quality personnel is beyond comprehension.
Are there any former Agility employees out there that shed some detailed light on the matter? Why did Agility hire these fools? Why have they been allowed to stay?
Monday, April 5th 2010 at 3:04 pm |
Cost x 7 is probably what they stole.
Monday, April 5th 2010 at 8:08 pm |
Agility should announce the ‘clarification’ on April 6 to the Kuwait Stock Exchange.
Tuesday, April 6th 2010 at 12:20 am |
Reuters just announced that Agility has once AGAIN delayed the release of their 2009 financials until April 11. Supposedly their Board of Directors is convening on April 6 to determine the way forward (settlement vs. trial). It appears the DOJ is holding their ground and not giving in for a discounted settlement (read penalty).
http://in.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idINLDE63504U20100406
Tuesday, April 6th 2010 at 7:04 am |
Click HERE for the original article
UPDATE 1-Kuwait’s Agility delays results amid U.S. talks
Tue Apr 6, 2010 12:17pm IST
KUWAIT, April 6 (Reuters) – Kuwaiti logistics firm Agility (AGLT.KW: Quote, Profile, Research) will postpone the release of its 2009 financial results until April 11 as it tries to reach a settlement with the U.S. government on a fraud case.
Agility, which had already delayed the results to April 6, said in a statement on Tuesday that it was waiting to see “whether or not it can resolve a legal dispute with the U.S. government.” It did not elaborate.
The company said that trading in its shares will continue to be halted.
Agility, 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.
On Tuesday, the Arabic language daily al-Qabas, citing unnamed sources, said if no settlement is reached by April 11, Agility will announce the results after making “enough provisions.”
Kuwait, which was the launch pad for the U.S.-led invasion of Iraq in 2003. has become a major logistics base for American forces. (Reporting by Diana Elias; Editing by Rupert Winchester)
Tuesday, April 6th 2010 at 7:57 am |
The reason they can’t release financial information is because they haven’t been able to close the books!
Tuesday, April 6th 2010 at 1:48 pm |
More like which set of books
Tuesday, April 6th 2010 at 7:59 am |
The bonus to Mongeon is interesting since they did not give merit increases to employees in 2009.
Friday, April 9th 2010 at 12:31 am |
FYI. Reuters is now (April 9) reporting Agility has settled with the USG for $600M just in time to be evaluated for the new PV contract. Although the evaluation is in its last stage with award imminent, I believe the USG will now start officially reviewing the Agility proposal to compete it against all other bidders. I also believe that the USG has been evaluating their proposal all along while they were suspended, which is illegal, just so that they would be prepared for this scenario. Now watch the USG miraculously award the follow on contract to Agility. Obviously protests are already being composed by all the other bidders. This should be interesting.