U.S. Navy photo/Petty Officer 1st Class Brandan W. Schulze

Pentagon Suspends Largest Food Supplier in Afghanistan, Iraq (1)

January 3, 2019Tony Capaccio
(Bloomberg) — Defense Logistics Agency suspends Anham FZCO, Dubai, and Anham USA, after Justice Dept indictment of officials in November.
  • Anham is largest DLA supplier of “Subsistence Prime Vendor” providing food services to troops in Iraq and Afghanistan; Afghanistan contract is worth $8b
  • NOTE: Justice Dept charged three former company officials for their roles in a scheme to defraud U.S. military contracts in Afghanistan, engaging in illegal commerce in Iran, and laundering money internationally; Special Inspector General for Afghanistan Reconstruction John Sopko assisted DOJ
  • DLA spokesman Pat Mackin says in emailed statement that DLA suspended company from its two current contracts but agency invoked a “compelling need” national security exemption that allows them to continue feeding and sustaining U.S. troops until new contractors take over
  • For Iraq contract, KGL Food Services WLL, won award in December and will take over in next few months, Mackin says
  • For Afghanistan, DLA is assessing bids for a new contract estimated in billions of dollars that will be awarded in next two months
    • Anham is not allowed to bid on the new work, he says
  • Anham in emailed statement says: “we are disappointed by this action, which is based on years-old alleged conduct by individuals who no longer work for Anham or any of its subcontractors”
    • “Given these issues, we are engaging” with DLA “about a resolution as soon as possible and are hopeful we will reach one”: Anham
    • DLA “action does not affect our ability to meet our existing contracts,” and  the officials indicted by the Justice Dept had left the company when the charges were brought
  • Earlier: Executives Committed $8 Billion Troop Supply Fraud, DOJ Says

(Updates  with statement from Anham saying officials had left company at the time they were charged.)

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