Kuwait's Agility seeks u-turn on US fraud charges

Storage and logistics provider asks judge to throw out charges it defrauded US gov't
By Andy Sambidge
Wed 22 Feb 2012 05:52 PM

Agility, the Kuwaiti storage and logistics provider, has asked a US judge to throw out charges it defrauded the US government on a multi-billion dollar contract to feed troops overseas.

Agility, also known as Public Warehousing Co, has filed a motion to dismiss the 2009 indictment alleging the company paid premium prices on products rather than getting discounts, according to court documents seen by Bloomberg. It said prosecutors have no proof to prove the case against Agility.

“The government resorted to a series of sharp and unethical tactics, designed to distort - and in some instances create - the evidence to support the government’s after-the-fact interpretation of the contract and to transform what is, at best, a contractual dispute over the proper interpretation of the prime vendor contracts into a criminal prosecution,” according to the court filing in federal court in Atlanta.

Agility, which was the largest supplier to the US Army in the Middle East during the war in Iraq, pleaded not guilty in August to charges it defrauded the US government.

In December, a unit of Agility sued to lift a freeze on government contracts imposed after the company was accused of defrauding the US.

Agility Defence & Government Logistics Services called the freeze “capricious” in a filing in federal court in Alabama.

The Defence Logistics Agency, or DLA, an arm of the US Department of Defense, suspended the unit from new contracts 10 days after Agility was indicted in November 2009.

In November, Agility posted a 42 percent fall in third-quarter net profit on the back of lost defence and government work.

Net profit in the three months to September 30 came in at KD8.1m ($29.4m), compared with net profit of KD13.9m in the year earlier period, Agility said in a statement.

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Last Updated: Thu 26 Jan 2017 01:27 PM GST

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