US drops Agility subsidiary charges

AGILITY’S woes have lessen just a little with news that the US is planning on dropping the charges for fraud against one of Agility’s subsidiaries.

“The United States Attorney’s office in Atlanta on Monday moved to dismiss an indictment against Agility DGS Holdings, a PWC/Agility subsidiary,” Agility said in a statement. “The prosecutors’ motives for seeking a dismissal at this time are unknown. However, this request comes after motions filed by Agility DGS Holdings to discover the government’s evidence against it, including Price Negotiation Memoranda, a set of exculpatory materials that the government has worked tirelessly to conceal from the public for over three years.

“As we have consistently maintained since the outset of this litigation, this case should never have been brought in the first place in a criminal court. This case is, at most, a civil contract dispute over the interpretation of a contract drafted by the government.”

It is alleged that PWC (what was once Agility), 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 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.

This latest move doesn’t let Agility off the hook but it goes some way to clearing its name.

“We remain committed to attempting to resolve this civil contract dispute so that the distraction of litigation is removed and we can continue to focus on our business, including providing the excellent service to the troops that they have come to expect from us,” the company added.

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