Daily Revolt

August 30, 2007

U.S. Says Company Bribed Officers for Work in Iraq

NY Times:
An American-owned company operating from Kuwait paid hundreds of thousands of dollars in bribes to American contracting officers in efforts to win more than $11 million in contracts, the government says in court documents.

The Army last month suspended the company, Lee Dynamics International, from doing business with the government, and the case now appears to be at the center of a contracting fraud scandal that prompted Defense Secretary Robert M. Gates to dispatch the Pentagon inspector general to Iraq to investigate.

Sounds like its widespread:
The Army has suspended 22 companies and individuals, at least temporarily, from pursuing government work because of contract fraud investigations in Iraq, Kuwait and Afghanistan, an Army spokesman said Thursday. A total of 18 companies and individuals are barred for a definite period from government work. Seven more face debarment.

[...]As the case expands, investigators are looking at the possibility that it has connections to what had appeared to be a separate major corruption scandal. Last week, Maj. John Cockerham, a former Army contracting officer in Kuwait, and his wife and his sister were indicted on charges that they accepted up to $9.6 million in bribes for defense contracts in Iraq and Kuwait.

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