US Contractor Investigated for ‘Overcharging’

Federal prosecutors in the U.S. are investigating whether a major contractor overcharged the government.

They are investigating allegations that the Louis Berger Group (LBG) submitted inflated invoices to the U.S. Agency for International Development (USAID), which oversees international development projects.

The company works in countries including the U.S., Iraq, Afghanistan and India.

LBG’s Chairman, Derish M. Wolff, sued the U.S. Justice Department last week, saying the government ‘suggested’ he resign and sever ties to the company by Friday. Wolff sought to bar the government from urging the company to terminate him, limit his employment in any way, and withhold his buyout proceeds in an escrow account. A judge denied his request.

The company has undertaken infrastructure and capacity building projects that “address the sources and consequences of political and economic fragility“.

(Sources: Bloomberg, Washington Post, Associated Press)

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