Agility U.S. Unit Fraud Charges to Be Dropped
(Updates with court filing in second paragraph.)
By Edvard Pettersson – July 27 (Bloomberg) — Agility’s U.S. subsidiary may be dropped from a criminal case accusing the Kuwaiti logistics company of overbilling the military after prosecutors sought to dismiss the charges against the unit.
The request pertains only to Agility DGS Holdings Inc. and not to any other defendant, federal prosecutors in Atlanta said yesterday in a court filing. The revised indictment filed in February names as the two other defendants the parent company, Public Warehousing Co., or Agility, and its Agility DGS Logistics Services subsidiary.
“This request comes after motions filed by Agility DGS Holdings to discover the government’s evidence against it,” Agility said today in an e-mailed statement. “This case is, at most, a civil contract dispute over the interpretation of a contract drafted by the government.”
Assistant U.S. Attorney Barbara Nelan didn’t immediately return a call to her office after regular business hours.
The company was first indicted in November on allegations it overcharged the U.S. government on a multibillion-dollar contract to supply food for troops in Kuwait and Iraq.
The case is U.S. v. Public Warehousing Co., 09-cr-490, U.S. District Court, Northern District of Georgia (Atlanta).
–With assistance from David Beasley in Atlanta and William McQuillen in Washington. Editors: Peter Blumberg, Michael Hytha. (Click HERE for original article)
Other Related Posts From Ms Sparky
- US moves to drop charges against Kuwait’s Agility
- Agility Unit Sues U.S. to Lift Freeze on Military Contracts (with links to court filings)
- Kuwait logistics firm Agility pleads not guilty to US fraud charges
- MG Dan Mongeon, USA (Ret.), his supeona stands, new charges against Agility possible
- Court rules against Agility in fraud case appeal
Wednesday, July 28th 2010 at 3:29 am |
Blah, blah, blah. This doesn’t change the case against PWC. The USG possesses clear evidence that Agility employees knowingly and criminally manipulated the invoices to maximize their profits. Read the indictments. All of the facts can be found therein. Agility has no defense. Yes, the US-based entities may have had nothing to do with the fraud, but Agility is DONE in Kuwait! By the end of 2010 PWC/Agility (Kuwait) will be terminated/phasing out from ALL their USG contracts (Subsistence Prime Vendor, DRMS, DDKS, LOGCAP…….). No more USG tit to suck on. What then orange dragon? Good riddance Tarek Sultan and all of your cronies!
Wednesday, July 28th 2010 at 4:02 am |
Just keep looking for those DLA, Air Force and the Army to keep trying their best to give the suspended companies contracts. They will try. Already have. Been caught and have been fired. Next ???? I think they forget whose money they are spending. Well, ok forget about the money they are pocketing – I mean taxpayer money.
Thursday, July 29th 2010 at 6:38 pm |
To anyone that thinks they know what they are talking about – suggest the DOJ open up ALL PV contracts pre-dating Agility’s. They did not invent this game – and those that know – know what the real deal is. Quicksand68 – you are in over your head with inflammatory comments about individuals (just who are those employees – brave enough to name names?) whose actions were not laden with criminal intent – but interpretation of contract language that was vague at best – and punitive when it came to OCONUS PVs being forced to hard spec suppliers that offered nothing more than product and a demand for payment in advance, no terms (and I don’t mean prompt pay – time), and in some cases no intentions to meet the unique shipping requirements of the DTS (I mean you know all about that – right?). It would be sooooo soooo simple to scream fraud – but it is just not that simple.
We come from a business where shelter and backside is an everyday fact of life.
I believe it relevant that the issue of who gets the $$$ be clarified.
I think it also critical that the US Government STOP putting US companies in a position to sell on open account to international customers in support of its operations – or – either accept the fact that if it wants to turn over subsistence to commercial entities and enjoy the savings (yes – the analsysis is out there – I mean you have it right? Probably not) from contractors – or take it back in house and bury thousands of loads in the desert.
As it did during the Gulf War.
Half the truth at the end of it all – is in effect – a lie.
Disgusted at it all – am I.
Saturday, July 31st 2010 at 6:44 am |
Interesting that DGS laid off most employees and will cease operations
Saturday, July 31st 2010 at 8:07 pm |
Of course
The orgranization that was dropped from the suit was Agility DGS Holdings only – which is actually a few minor subsidiaries – not Agility DGS.
This will have no effect on the overall operations of Agility DGS Inc. They are still supspended.
Wednesday, August 4th 2010 at 3:04 am |
Here is another article:
Logistics Giant vs US Government Takes A New Twist
…“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.”…
Thursday, August 5th 2010 at 3:06 am |
Trading in Kuwait’s Agility halted on media report
by Diana Elias Thursday, 05 August 2010
STOCK WATCH: Kuwait’s Agility has stopped trading shares. Trading in Kuwait’s logistics firm Agility was halted on Thursday on a media report that US prosecutors were going to drop fraud charges against it.
Thursday, August 12th 2010 at 2:31 am |
U.S. to extend Agility contract for 6 months- paper
The U.S. army has decided to extend Agility’s prime vendor contract for six months starting in September, after the current contract ends, Kuwaiti daily al-Jarida said on Thursday.
Agility, formerly Public Warehousing Co, K.S.C. (PWC) was dropped from supplying food to the U.S. Army in Iraq, Kuwait and Jordan after being accused of overcharging the military. The company held contracts worth $8.5 billion spanning more than three years.
Officials at Agility could not be reached for comment.
Thursday, August 12th 2010 at 2:51 am |
So does this mean Anham is the proverbial bride left at the altar or is this a different ssue al together?
Thursday, August 12th 2010 at 4:13 am |
This extension is due to the protest filed by KGL. The GAO is forcing DSCP to amend the solicitation requirements and both Anham and KGL are then allowed to submit amended bids. As KGL’s Chairman stated a few weeks back, the contract is “still up for grabs”. Anham didn’t follow the USG’s estimates for pallet positions required and also failed to meet the minimum force protection standards for CENTCOM. Due to these facts, Anham was able to low-ball the contract and secure the initial award. GAO is creating an even playing field now.
It will be interesting to watch DSCP work this process of new award, then transition from Agility to the new vendor. VERY INTERESTING!
Thursday, August 12th 2010 at 7:14 am |
The GAO never create an even playing field. They are biased and corrupt. They will side with whoever it benefits them to side with.
The GAO are as political as the DOJ. Side with who they want or who they are told to side with.
Thursday, August 12th 2010 at 8:31 am |
I thought it odd that the GAO didn’t sustain the protest from KGL. Possibly only a few of the protested items held weight and therefore the GAO couldn’t uphold the entire protest. Not well read into GAO process though. I would assume they can sustain a protest if only one of a myriad of items are found to be legitimate. Correct? I think the worst part of this story is that Agility is being extended. Damn suspended contractors taking taxpayers’ dollars! Same thing is happening with the DDKS contract. I don’t blame Keven for protesting the Sole Source though.
Thursday, August 12th 2010 at 12:41 pm |
Thanks, it saved the USG a 5% award fee and the contract will get competed again after 4 years.
Where is that Agility pardon from Obama ? Has anyone seen it? DOJ – silence.
Thursday, August 12th 2010 at 9:46 am |
This doesn’t mean anything??..
KGL Food Services W.L.L. (SPM300-08-R-0061)
Department of Defense : Defense Logistics Agency
Quick View Outcome: Dismissed Date Decided: July 22, 2010
Filed Date: April 27, 2010
Due: August 5, 2010
Case Type: Bid Protest
GAO Attorney: David A. Ashen
File Number: 400660.5
Thursday, August 12th 2010 at 10:54 am |
There’s a big difference between a dismissed protest and a denied protest. The KGL protest was dismissed and the GAO is forcing DSCP to amend the solicitation and accept amended bids form Anham and KGL. It’s not over until the fat lady sings. For the simple fact that the USG doesn’t like to look incompetent, I believe this is all for show and Anham will keep the contract ultimately.
Sunday, February 26th 2012 at 10:40 am |
Other current government foodservice contracts in places not nearly as hostile and challenging as Iraq have the same or worse characterisics of overcharge to the taxpayer!!!
Sodexo Food Services was fined 20 million dollars by the State of New York for false claims and bribes, and is now managing the US Marine corps Contract!!!!