Agility delays 2009 financial results

01 April 2010

Kuwaiti company delays results on US government case

Kuwaiti logistics firm Agility will is delay the release of its 2009 full year results has resolved legal issues with the US government.

Agility asked for trading in its shares to be suspended and said it would delay the release of its full year results to 6 April in a statement to the Kuwait Stock Exchange on 31 march.

Agility is currently involved in talks discussions with the US government over allegations that the company overcharged the US Department of Defense on $8.5bn of contracts.

Agility denies the allegations that it overcharged on the contracts, to supply food for US military personnel based in Kuwait, Jordan and Iraq.

The firm was given until 25 February to file a statement to an Atlanta, Georgia court to explain why it claims that to have not been properly served with an indictment in November 2009 (MEED 23:2:10).

The US Department of Justice was scheduled to file its own brief by 11 March to allow the court to make a decision on whether the firm was properly indicted.

The process, known as a briefing schedule, is aimed at preserving the company’s rights while it continues discussions with the Department of Justice to resolve the case.

The company was indicted on 16 November 2009 under its previous name, the Public Warehousing Company (PWC), in a dispute with the department over multiple charges of conspiracy and fraud.

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