* Tentative agreement and plea could come early this week
* Agility suspended from bidding on US contracts
By Matthew Bigg
ATLANTA, April 26 The U.S. government says it
is close to a deal with Kuwaiti logistics company Agility
(AGLT.KW), which is accused of defrauding the U.S. military in
the Middle East on multibillion-dollar supply contracts.
There was no word on Monday on the timing or terms of a
possible deal between prosecutors and Agility, the main
supplier to the U.S. Army in the Gulf.
But for the first time, the government has acknowledged
negotiations toward a settlement.
"In the last week, substantial progress has been made in
resolving the administrative aspects of this matter, the final
component that needed to be resolved," U.S. prosecutors said in
a court filing on Friday.
"It is anticipated that an agreement in principle on an
administrative resolution will be reached early next week," the
The case emerged in November when prosecutors accused the
company of overcharging the U.S. Army over 41 months on $8.5
billion in contracts first signed at the start of the Gulf War
Since November Agility, formerly Public Warehousing Co KSC,
has been suspended from bidding on new contracts.
The issue of whether the suspension is rescinded, freeing
Agility to bid on new contracts, is seen as crucial to any
The filing was made in response to a "motion to quash" the
indictments and the government said it would respond to that
motion on May 3 if no "tentative agreement" had been reached.
"The parties expect that before May 3, 2010, they will ...
allow time for defendant PWC's board of directors and general
assembly of shareholders to approve all aspects of the
settlement agreement, including a resolution of this case by a
plea," the filing said.
U.S. prosecutors raised the stakes this month by issuing a
fresh indictment on Agility. It added no new charges but named
a U.S.-based subsidiary as well as a Kuwait-based logistics
company as well as the parent to the indictment.
The company argues that the indictments were never properly
served and are thus invalid.
This month the U.S. Defense and Logistics Agency awarded
Dubai-based ANHAM FZCO LLC a $2.2 billion contract to provide
food and support services to the U.S. military in Kuwait, Iraq
The suit, No. 1:09-CR-0490-AJB-TWT, is being heard at the
U.S. District Court for the Northern District of Georgia,
It is United States of America v The Public Warehousing
Company, K.S.C., a/k/a Agility.
(Additional reporting by Jeremy Pelofsky, editing by Gerald E.