Kuwait's Agility Says Committed To Resolving US Justice Dept Dispute

Tuesday, Jul 19, 2011

(This item was originally published Monday.)

DUBAI (Zawya Dow Jones)---Kuwait's Agility, the biggest logistics company by market value in the Arab Gulf region, said Monday it remains committed to trying to resolve a dispute with the U.S. justice department over contracts related to the supply of food to U.S. troops in Iraq, but is prepared to defend itself vigorously if discussions aren't fruitful.

The company, which previously operated under the name Public Warehousing Co., has been accused of conspiracy and fraud related to alleged overcharging of the U.S. government on food contracts to supply troops in Iraq. Agility has denied the allegations.

Last week, the 11th U.S. Court of Appeals declined Agility's request to review an earlier district court ruling that the Justice Department had lawfully served the company with a notice of summons and indictment.

"The company (Agility) continues to believe the case involves a civil contract dispute and should not be a criminal matter. Agility's prices, suppliers and business practices were disclosed to, approved and routinely reviewed by its U.S. government customer," Agility said in a statement posted on the Dubai Financial Market website.

Agility shares closed trading Sunday 6% lower at KWD0.315.

-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com

(END) Dow Jones Newswires

19-07-11 0411GMT