EGL Inc., a subcontractor for Kellogg Brown and Root, has agreed to pay $4 million to settle allegations that it inflated invoices for military cargo shipments to Iraq The invoices were for shipments of military goods from Dubai to Iraq from late November 2003 through July 2004.
The company won a war contract in 2002 to fly freight into Baghdad from Dubai. The deal was part of a logistics contract between KBR and the government that has paid out more than $11 billion, according to the Army Field Support Command.
The suit originated as a qui tam suit brought under the whistleblower provisions of the false Claims Act.
More details can be found in the U.S. Dept. of Justice’s August 2, 2006 press release and in the AP story at the Forbe’s website.