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 December 19, 2014

News: SpaceX’s attempt to land rocket on floating barge postponed - It’s set to be one of the most groundbreaking moments in humanity’s six decades of space exploration. Obama signs $1.1 trillion spending bill into law - President Obama signed the $1.1 trillion federal spending measure into law Dec. 16, officially ending any threat of a government...
 
 

News Briefs December 19, 2014

Trial set for ex-Navy engineer in military secrets case A former Navy civilian engineer is scheduled to stand trial next summer on charges of trying to steal aircraft carrier schematics. Media outlets report that 35-year-old Mostafa Awwad of Yorktown, Va., pleaded not guilty Dec. 17 to two counts of attempted exportation of defense articles and...
 
 

Lockheed to settle suit over retirement accounts

Lockheed Martin agreed Dec. 16 to settle a federal class-action lawsuit accusing the aerospace and defense behemoth of mismanaging the investment accounts of its employees and retirees, charging the investors high fees along the way. The tentative deal announced in federal court in Illinois’ East St. Louis averted an anticipated four-week trial in the 8-year-old...
 

 

Headlines December 17, 2014

News: U.S. Air Force tanker platform slated for year-end debut - Boeing is planning for first flight of its 767-2C – upon which the U.S. Air Force’s new KC-46 tanker will be based – by year’s end, six months late. Northrop Grumman wins $657.4 million deal to supply drones to South Korea - Northrop Grumman has won...
 
 

Headlines December 15, 2014

News: Defense authorization bill heads to White House - Senate lawmakers finalized work on the $584.2 billion annual defense authorization bill Dec .12, putting in place a 1 percent pay raise for troops starting in January and limiting growth in housing allowance rates. Senators make final push for vets suicide-prevention bill - An effort to get a...
 
 

News Briefs December 15, 2014

Official: Afghan insurgents kill two U.S. troops An international military official has told The Associated Press that an insurgent attack on a convoy in eastern Afghanistan has killed two U.S. troops. The official says the attack happened by the Bagram air base in Parwan province near the capital, Kabul, late Dec. 12. The official spoke...
 




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>