Kuwaiti logistics company Agility is to pay the US government $600m to settle fraud charges after it was indicted in November on allegations of overcharging the US army on a multi-billion dollar contract to supply food for troops in Kuwait and Iraq.
Agility, formerly known as Public Warehousing Company, will pay the money over three years.
On 11 April, the company reported its revenues had declined by 7 per cent compared to 2008, mainly on account of the economic downturn, which led to a fall in freight volumes.
“Agility is facing a number of challenges, including the slower-than-expected recovery from the global economic recession, the troop drawdown in Iraq, and the ongoing legal issues,” says Tarek Sultan, chairman and managing director of Agility.
Agility is publicly listed on the Kuwait Stock Exchange (KSE) and on the Dubai Financial Market (DFM), with more than 15,000 investors holding shares.