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Bonds News

Kuwait Agility to pay $600 mln in fraud case-paper

KUWAIT, April 9 (Reuters) - Kuwait's logistics firm Agility AGLT.KW is to pay the U.S. government $600 million to settle fraud charges, an Arabic-language daily reported on Friday, citing unnamed sources.

Agility and the U.S. government reached a preliminary agreement and the sum would be paid over three years, Kuwait’s Al-Jarida newspaper said.

The Kuwaiti firm, formerly Public Warehousing Co K.S.C., is in talks to resolve an indictment accusing it of overcharging the U.S. Army on supply contracts in Iraq, Kuwait and Jordan.

The company has delayed the release of its financial results until Sunday and requested a trading halt on its shares, pending clarity on talks. [ID:nLDE63504U]

Al-Jarida said the settlement will mean the return of U.S. government business to Agility, but it was not clear yet if that would be in full or in part.

It said the settlement could be announced “in a day or two.”

“It (the settlement)... could include some slight changes, especially regarding the return of all contracts or the majority of them,” the paper said.

Agility was not immediately available to comment.

Kuwait has become a major logistics base for U.S. forces since the 2003 American invasion of Iraq. (Reporting by Diana Elias; Editing by Erica Billingham)

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