Nov 19 The U.S. Justice Department said Monday
that it had sued KBR Inc, accusing the company and a
Kuwaiti subcontractor of improperly charging the federal
government for the costs of delivering and installing trailers
for troops in Iraq.
The filing of the lawsuit came days after the Justice
Department dropped a similar but unrelated case over KBR's costs
for private armed security in Iraq.
Filed in the U.S. District Court in Rock Island, Illinois,
the latest lawsuit alleged that KBR-hired subcontractor First
Kuwaiti Trading Company inflated its crane, truck and driver
costs and misrepresented delays on the installation of more than
KBR provided many services to the U.S. government under a
logistical support contract through subcontractors like First
First Kuwaiti's subcontract, awarded in 2003, had been for
$80 million. The government said KBR later agreed to pay First
Kuwaiti an extra $48.8 million after the subcontractor in 2004
submitted two claims contending government-caused delays in
providing military escorts entitled it to extra money.
The lawsuit said KBR charged the government for the inflated
costs despite knowing they were false.
"The facts alleged in the complaint indicate that KBR and
First Kuwaiti did not provide an honest accounting," said Jim
Lewis, U.S. Attorney for the Central District of Illinois.
Representatives for KBR did not immediately respond to
requests for comment. A representative for First Kuwaiti did not
respond to an e-mail seeking comment.
Both lawsuits were under the False Claims Act, which allows
the United States to recoup funds when companies overbill the
The statute allows the government to sue for three times its
damages and assess civil penalties of $5,500 to $11,000 per