We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Tue 17 Nov 2009 05:54 PM

Font Size

- Aa +

Agility says not 'banned' from the US

UPDATE 1: Firm denies fraud allegations after a US grand jury accused it of overcharging.


Agility

, a Kuwaiti firm supplying food to US soldiers in Iraq and Kuwait, said it had been temporarily suspended, but not debarred, from new US government contracts pending the outcome of a grand jury indictment on allegations that it overcharged.

Agility

was indicted on Monday, under its previous name, Public Warehousing Company, KSC (PWC). The firm is accused of overcharging the US Army to the tune of $60m over a 41- month period, on $8.5bn worth of food supply contracts.

"The Defense Logistics Agency (DLA) has temporarily suspended PWC from being awarded any new business until it determines that the company is presently responsible. The company has not been debarred from US government contracting,"
Agility

said in a statement published by the Dubai bourse.

The statement,
Agility

said, corrects its own statement made one day earlier saying it had been debarred from new US contract awards.

No decision on whether to debar the company would take place until all the facts of the case have been reviewed,
Agility

said.

Agility

, the principle food supplier to the US military in Kuwait and Iraq, said previously that the indictment and complaint were without merit and would not impact current contracts with the US government.

Shares in
Agility

fell more than 8 percent on the Kuwaiti bourse on Tuesday in the wake of the news.

Agility

receives 37 percent of its revenue through logistics support to the US government and other agencies, according to a recent report from Goldman Sachs.

It competes with regional firm
Aramex

and global players such as DHL, UPS, FedEx and TNT.

(Reuters)

Arabian Business: why we're going behind a paywall

For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.