Logistics firm Agility, which lost a US military contract over fraud charges, played down suggestions it was close to a settlement just as a dispute broke out over the re-awarded contract.

The US government has replaced Agility as the main supplier to its troops in Kuwait, Iraq and Jordan with Dubai-based Anham FZCO, awarding it a $2.2 billion contract.
Shortly after Agility's announcement, a third company, KGL, also known as the Kuwait and Gulf Link Transport Co, said it would dispute the award because Anham did not meet minimum bidding requirements.

It said it expected a response to its challenge within 30 days.

Naser Al-Nafisi, general manager of Al Joman Center for Economic Consultancy, said he did not see any connection between KGL's objection and Agility's announcement.   

Sam Khatib, business development director at KGL, told Al Arabiya TV on Wednesday there were no talks for cooperation with Anham. "Our position is clear and that is why we filed the objection," he said.

Kuwait has become a major logistics base for the American military since the US invasion of Iraq in 2003.

Agility said there was no guarantee it would reach a settlement with US authorities over accusations it defrauded the US military in the Middle East on multibillion-dollar supply contracts.   

Agility issued the statement at the request of the stock exchange, which briefly halted trading in the company's shares pending clarification of a report that it was close to a settlement with US authorities over the charges, which date back to November 2009.   

In a court filing last Friday, US prosecutors said it is anticipated that "an agreement in principle on an administrative resolution will be reached early next week."   -Reuters