Kuwaiti-based logistics company Agility is seeking a US$225 million compensation from the US government for an alleged breach of contract, the National newspaper reported today.
According to Agility, the US reneged on a contract the company had to supply food supplies to the US military in Iraq and Kuwait.
Although the appeal was filed on April 16 to the US Armed Services Board of Contract Appeals, an independent forum, the National revealed that the company had lodged a further document yesterday with the Dubai Stock Exchange claiming US officials had “conspired and acted in concert to intentionally deprive Agility of its rights under (its) second prime vendor contract.”
Spats between Agility and the US government have been ongoing since 2009, when US officials filed against the company claiming they had been overcharged for supplies on $8.5 billion contracts first signed at the start of the Gulf War in 2003. Last month, it was reported that US officials were seeking in excess of a billion dollars as compensation.
Agility's shares, however, rose up 4.9 per cent on the news, to 425 Kuwaiti fils.