Agility further delays release of financial results

06 April 2010

The US government have aked Agility to pay $750m to settle fraud charges

Kuwait-based logistics firm Agility has further delayed its 2009 financial results to 11 April pending a decision on whether it can resolve its legal dispute with the US government.

“The Public Warehousing Company KSC (PWC) today said that it would delay the release of the full-year 2009 financial results until April 11, 2010, pending a determination by the company about whether or not it can resolve a legal dispute with the U.S. government. During this time, shares will continue to be suspended from trading,” the firm says in a statement.

Previously, Agility said it was delaying its full year results and asked for trading in its shares to be suspended until 6 April in a statement made to the Kuwait Stock Exchange on 31 March (MEED 31:3:10).

The US Department of Defense now wants Agility to pay $750m to settle fraud charges against it, according to local media. However, Agility wants to pay less, between $300m and $500m which has caused the further delay to the release of the company’s 2009 financial results.

Agility declined to comment on this issue.

Agility is currently involved in talks 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).

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