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.


 
 

 

News Briefs April 24, 2015

German defense minister: widely used rifle has no future A widely used assault rifle has “no future” with the German military in its current form, Germany’s defense minister said April 22, escalating a dispute over the weapon’s alleged shortcomings. Ursula von der Leyen said last month that a study showed the G36 rifle has a...
 
 

Headlines April 22, 2015

News: Virgin Galactic will fly again - Virgin Galactic hopes to begin testing a new version of SpaceShipTwo by the end of the year according to the company’s chief executive.   Business: Poland selects Patriot, Caracal helos - Poland has selected the U.S. Patriot system and the Airbus Caracal helicopter as the European nation faces an increasingly...
 
 

News Briefs April 22, 2015

U.S. says ship’s mission off Yemen is to protect navigation The White House says the U.S. aircraft carrier heading to the waters off Yemen is there to protect freedom of navigation and commerce. Navy officials said April 20 that the USS Theodore Roosevelt would beef up security following reports of Iranian ships heading toward Yemen,...
 

 

Headlines April 20, 2015

News: Sale of U.S. arms fuels the wars of Arab states - As the Middle East descends into proxy wars, sectarian conflicts and battles against terrorist networks, countries in the region that have stockpiled American military hardware are now actually using it and wanting more. U.S. spending $1 billion to reassure European allies - From Army rotations...
 
 

News Briefs April 20, 2015

Last two Raiders give congressional medal to Ohio museum The last two ìDoolittle Tokyo Raidersî have presented their Congressional Gold Medal for permanent display at a museum in southwest Ohio. The medal arrived at the National Museum of the U.S. Air Force near Dayton in a ceremonial B-25 bomber flight. The medal was awarded by...
 
 

Headlines April 17, 2015

News: Army extends benefits to Hood shooting victims - The Army will provide “all possible benefits” to victims of the 2009 Fort Hood shooting who recently were awarded the Purple Heart, the service announced April 16.   Business: Rolls-Royce lands biggest deal in its 109-year history - U.K. engineering company Rolls-Royce has won the largest order in...
 




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>