US Wants Agility to Pay $750m

05.04.2010 Kuwait

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US authorities want Kuwaiti logistics firm Agility to pay up to $750 million to settle fraud charges but the company hopes to pay less, a Kuwait newspaper said on Monday.

Arabic language daily Al-Jarida, citing unnamed sources, said Agility wants to pay between $300 million to $500 million in compensation. Agility officials could not immediately be reached for comment.

The Kuwaiti firm, formerly Public Warehousing Co, is in talks to resolve an indictment accusing it of overcharging the US Army on supply contracts in Iraq, Kuwait, and Jordan.

The company has delayed the release of its financial results until Tuesday and requested a trading halt on its shares, pending clarity on talks to reach a financial settlement.

On Monday, Al-Jarida said the two parties were negotiating a schedule for repayment and whether Agility will get new contracts with the US military.

A second Kuwaiti newspaper, Al-Anbaa, quoted unnamed sources as saying that if talks between Agility and the US government do not reach a settlement this week, the case will go to US courts.

Kuwait, which was the launch pad for the US-led invasion of Iraq in 2003, has become a major logistics base for American forces.
 
 

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