Agility fraud charges pulls in two subsidiaries

ALLEGATIONS against Agility for fraud against the US Army have been widened to include two of the company’s subsidiaries: US-based Agility DGS Holdings and Kuwait-based Agility DGS Logistics Services.

The expansion of the case includes no new charges against Agility, just pulls in the two additional companies into the original charges.

The case was initially filed by Kamal Mustafa Al-Sultan, the owner of a Kuwaiti company that originally partnered with Agility, then trading under its old name of Public Warehousing Company (PWC), to submit a proposal on food supply contracts to the US Army in Kuwait and Iraq.

It is alleged that PWC, the Sultan Center Food Products Company (TSC) and PWC’s chief executive officer, Tarek Abbul Aziz Sultan Al-Essa, defrauded the US Army out of US$60 million by knowingly overcharging for fruits and vegetables that PWC purchased through TSC. It is also alleged that PWC failed to disclose and pass through rebates and discounts it obtained from its US-based suppliers, as required by its contracts.

Under the False Claims Act, the United States may recover three times the amount of its losses, plus civil penalties.