Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Tamimi Global To Pay $13 Million Over Army, KBR Kickbacks

WSJ Blog September 16, 2011

Tamimi Global Co., or TAFGA, agreed to pay the U.S. $13 million to settle criminal and civil allegations that it paid kickbacks to an employee of a government contractor and illegal gratuities to a former U.S. Army Sergeant in connection with Army operations in Iraq and Kuwait.

The Saudi Arabia-based company entered into a deferred-prosecution agreement with the U.S. that calls for TAFGA to pay the U.S. $5.6 million and institute a compliance program. In a separate civil settlement, TAFGA agreed to pay the U.S. $7.4 million to settle allegations that it paid kickbacks to a Kellogg Brown & Root employee for favorable treatment.

“When we believe companies are engaging in wartime profiteering, we will not hesitate to act,” said Tony West, assistant attorney general for the Justice Department’s Civil Division, in a statement.

Under the deferred-prosecution agreement, the new compliance program TAFGA must form requires it to establish a new Kuwaiti management team, as well as an ethics and compliance team with oversight over U.S. government contracts. It also has to institute a compliance hotline, and to retain a monitor.

If TAFGA meets its obligations under the agreement for 18 months without violating it, the Justice Department said it will dismiss the criminal charges

Please see the original at WSJ Blog

September 16, 2011 - Posted by | Civilian Contractors, Contractor Corruption, KBR | , , , , ,

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