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Agility still in hot water

Agility still in hot water

Agility’s high-profile tiff with the US government continues. The firm is currently in talks with the US government to settle the matter out of court.

December 29, 2009 11:20 by



“A settlement would be better for Agility, but I do not think that Agility will sacrifice huge amounts in the settlement,” Mustafa Behbahani, a director at Kuwait Gulf Consulting Co said to Reuters on Monday. “It all depends on the future deals Agility is eyeing.”

“If the future contracts are worth four or five times more than the settlement amount, this would be in favor of the firm,” he added.

Agility announced last week that DynCorp International, a US defense contractor, dropped the Kuwaiti firm’s US arm from a US Army contract. The company said it may seek legal action against DynCorp International for its decision.

Meanwhile on the stock market, Agility ended five days of losses on Sunday when it soared 8.2 percent to 660fils, its biggest leap since January 27, reported Bloomberg. Shares rose on news that Agility’s Qatari arm is in final talks with Gulf Warehousing on a merger.

On Monday, however, Agility’s closed 4.65 percent down at 620fils a share after the company announced it is in talks with the US government over its fraud charge.



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3 Comments

  1. august on December 30, 2009 5:08 pm

    It cost the government much more than those hundreds of millions. if agility had been looking for best value suppliers instead of cousins of tehirs and us companies who paid them fat allowances in order to get their sales, agility could have saved the government a huge amt of money in liegitimate cost. justice dept must clean up and add transparency to the supplying companies who paid for the sales, paid bribes in effect, and it sends a message that these business practices are unethical. It is epidemic. It is not just a handful of bad people or some bad policy in one company! thye supplying companies who paid to keep others out were not doing so on their own nickel. They were inflating cost to the us taxpayer. lets know who they are. let them be accountable so they wont continue to do the same thing elsewhere.

     
  2. Hamid Raja on December 31, 2009 7:37 am

    How someone can blame somebody of overcharging? as once you pay you get agreed to something (rate) before you pay. it seems a joke

     
  3. Henry on December 31, 2009 3:51 pm

    If you overcharge you must be willing to lose the business once it is found out that you duped the purchaser. That is what often happens. All the regulations in the world don’t work if there are very greedy opportunistic people.

     

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