Agility cleared to continue US military contract to December

DESPITE being in the middle of a fraud investigation that has seen the contract moved elsewhere, Agility has been given special dispensation to continue supplying US armed forces in Iraq until 4 December 2010.

Vice-admiral Alan Thompson, director of the US Defense Logistics Agency (DLA), gave the logistics company “compelling reasons determination” saying: “Continued performance by [Agility] through the end of its contract is critical to continuity of support.”

Agility’s contract was given to Anham after it was alleged that PWC (as Agility was then called), the Sultan Center Food Products Company (TSC), US-based Agility DGS Holdings, Kuwait-based Agility DGS Logistics Services and PWC’s chief executive officer, Tarek Abdul 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.

The US Attorney’s office has moved to dismiss an indictment against Agility DGS Holdings, in part clearing Agility of the charges.

“Agility views the case as a civil contract dispute rather than a criminal matter. The company’s prices, choice of suppliers and business practices were established in consultation with DLA, which approved them.”

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