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Agility to make court appearance

Representatives of Kuwait-based Agility will be in court on Jan. 8 to answer a six-count Federal indictment that the company overcharged the U.S. government for logistics services.

According to press reports from the Gulf region, in December Agility had attempted to negotiate a settlement with the US government worth "$600 million" but had not reached an agreement.

The lawsuit alleges that the Public Warehousing Company (PWC), now trading as Agility, and Tarek Abbul Aziz Sultan Al-Essa, Agility’s CEO, made false claims for payment under PWC’s multi-billion contracts with the US Defense Logistics Agency to supply food for the US military in Kuwait, Iraq and Jordan.

In July 2009 Agility announced it had been awarded US army contracts worth over $6.0 billion with DynCorp International and CH2M Hill for logistics support in Afghanistan. "The task order value is $643.5 million for the one-year base period. The award also includes four one year option periods with a total evaluated value of $5.874 billion," the company said in a statement at the time.

On Dec. 17, Agility announced that DynCorp International had stopped using it as subcontractor for the Afghan contract.

Meanwhile the Qatar-based Gulf Warehousing Company is to merge with the Agility's Qatari unit. The company will operate as GWC-Agility and the company said the merger would be finalized by mid-March.