In the news...

January 27, 2014

U.S. sues KBR in connection with Army work in Iraq

The federal government is suing Kellogg, Brown & Root Services Inc., charging that the defense contractor submitted false claims and took kickbacks in connection to a U.S. Army contract in Iraq.

The government alleges that KBR employees took kickbacks from two Kuwaiti companies that it hired as subcontractors in 2003 and 2004, then filed claims for reimbursement for inflated costs.

The Justice Department said Jan. 23 that it filed the lawsuit in federal court in Illinois.

Houston-based KBR said it could not comment on the lawsuit Jan. 23 because it had just been filed.
KBR had a contract to provide transportation, maintenance, food, shelter and other services to support the Army in Iraq, and it used local subcontractors to perform some of the work.

In the civil lawsuit, the government charged that KBR employees took kickbacks from La Nouvelle General Trading & Contracting Co. and First Kuwaiti Trading Co. for the award and oversight of subcontracts, then filed false reimbursement claims.

In one case, the government said, KBR inflated the value of fuel tankers provided by La Nouvelle, which later gave the KBR employee who awarded the subcontract $1 million. In another, officials said, KBR continued to make monthly lease payments to First Kuwaiti for trucks that KBR had already returned to the subcontractor.

KBR also used refrigerated trailers to transport ice for consumption by troops that had been used as temporary morgues but hadn’t been first sanitized, the lawsuit alleges.

The government is asking for civil penalties against KBR and the two Kuwaiti companies up to twice the amount of the alleged kickbacks and several times the amount of the false claims.

The Justice Department said that federal prosecutors in Illinois have won convictions against 10 companies and individuals in connection with contracts in Iraq, including three KBR subcontract managers who admitted taking kickbacks or making false statements.

Some allegations in the government’s lawsuit were first raised in a lawsuit filed in Houston by a whistleblower. That case was transferred to U.S. District Court in Rock Island, Illinois, where the Pentagon office handling the Iraq contract is based. AP




All of this week's top headlines to your email every Friday.


 
 

 

Headlines January 28, 2015

News: Panel will propose new military retirement system - The long-awaited report on military compensation set to drop Thursday will propose fundamental changes to military retirement and health care benefits, according to several people familiar with the report. Source: DOD to request $585 billion for fiscal 2016 - The Department of Defense is preparing to submit a...
 
 

News Briefs January 28, 2015

Defense contractor to pay $2 million to settle claims A Northern California defense contractor will pay the federal government $2 million to settle claims about its manufacturing of parts for remote-controlled aircraft. The U.S. Attorney’s Office in Sacramento says Sacramento-based Composite Engineering Inc. agreed to pay the money to end allegations that it artificially inflated...
 
 
Navy photograph

USS Roosevelt marks 200,000 trap

Navy photograph An F/A-18F Super Hornet flown by Capt. Daniel Grieco, commanding officer of the aircraft carrier USS Theodore Roosevelt (CVN 71), and Capt. Benjamin Hewlett, deputy commander of Carrier Air Wing (CVW) 1, complet...
 

 
Navy photograph by PO1 William Larned

USS California returns from maiden deployment

Navy photograph by PO1 William Larned The Virginia-class attack submarine USS California (SSN 781) returns from its maiden deployment to its homeport at Naval Submarine Base New London. Under the command of Cmdr. Shawn Huey, Ca...
 
 
Army photograph

Army proves new watercraft capabilities

Army photograph Marine Corps assets are loaded onto the USNS Sgt. Matej Kocak (T-AK 3005), from an U.S. Army Landing Craft Utility, or LCU, USAV Port Hudson during port operations, at White Beach Naval Base, Jan. 22, 2015. Sold...
 
 

Orbital stockholders approve merger with ATK’s aerospace, defense groups

Orbital Sciences Corporation announced Jan. 27 that at a special meeting, the company’s stockholders voted overwhelmingly to approve the proposed merger with the Aerospace and Defense Groups of Alliant Techsystems Inc., pursuant to the definitive transaction agreement dated April 28, 2014. Approximately 99 percent of the votes cast at the special meeting voted in favor...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>