Tamimi Global Co
will pay $13m to settle US criminal and civil allegations it paid kickbacks to
a KBR Inc employee and improper gratuities to a US Army sergeant, the US
Justice Department said.
Tamimi Global, a
Dhahran-based unit of the Saudi Arabian construction and manufacturing Tamimi
Group conglomerate, gave kickbacks to get Army logistical support subcontracts
from Houston-based KBR for work in Iraq and Afghanistan, according to the US,
and improperly gave the gratuities to Sergeant Ray Chase in Kuwait, the US
The company, through
its lawyers, entered a deferred prosecution agreement with the US in a hearing
today at the federal courthouse in Peoria, Illinois, according to the US
collusion in military contracting corrode the process of supplying our men and
women in uniform with the quality supplies they need and deserve,” Assistant US
Attorney General Tony West said in an e-mailed statement.
Tamimi will pay $5.6
million as part of that pact and, separately, agreed to pay $7.4m to settle
claims it paid kickbacks to obtain favourable treatment in the awarding of a
Baghdad Palace dining facilities subcontract.
“The misconduct that is the subject of a
settlement with the United States Government took place more than five years
ago,” defense attorneys Ronald Safer and Matthew Crowl, said in an e-mailed
statement. The company has since cooperated in the US probe and adopted new compliance
protocols, they said.
Tamimi has served
more than 600 million meals to US servicemen since 1990, its attorneys said.
Chase, who allegedly
received $1.4m in improper gratuities from various contractors, last year
pleaded guilty and was sentenced to a year and a day in prison. KBR subcontract
manager Steven Seamans in March 2006 pleaded guilty to receiving more than
$60,000 in kickbacks.
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