Kuwait's Agility, the Gulf region's biggest logistics firm, had its U.S. army prime vendor contract extended for an additional 6 months starting from beginning of September after the existing 6-month contract comes to an end, Kuwait-based Al Jarida daily reported, citing people familiar with the matter. The deadline for Agility to transfer its responsibilities to Dubai-based Anham FZCO, the company appointed by the U.S. military to replace the Kuwaiti firm, ended July 12 but the handover didn't take place, the paper cited the people as saying.
The contract extension is linked to new developments in an U.S. court in favor of Agility, which submitted new documents to prove that it wasn't involved in price overcharging, according to the paper, adding that the company still awaits the court's final decision.
Agility was replaced as the main food supplier to the U.S. military earlier this year because it allegedly overcharged supplies to the U.S. military. The U.S. government appointed Anham to take over the prime vendor contract back in May 2010.
Agility officials couldn't be reached immediately for comments.