Tamimi Global to Pay $13m for KBR Kickbacks

Tamimi Global will pay $13 million to settle U.S. criminal and civil allegations that it paid kickbacks to a KBR employee and improper gratuities to a U.S. Army sergeant, according to a report from Bloomberg.

The Dhahran-based unit of the Saudi Arabian construction and manufacturing Tamimi Group, gave kickbacks to get Army logistical support subcontracts from Houston-based KBR for work in Iraq and Afghanistan, according to the U.S., and improperly gave the gratuities to Sergeant Ray Chase in Kuwait, the U.S. said.

The company, through its lawyers, entered a deferred prosecution agreement with the U.S. in a hearing in Illinois.

“Kickbacks and collusion in military contracting corrode the process of supplying our men and women in uniform with the quality supplies they need and deserve,” Assistant U.S. Attorney General Tony West said in an e-mailed statement.

Tamimi will pay $5.6 million as part of that pact and, separately, agreed to pay $7.4 million to settle claims it paid kickbacks to obtain favorable treatment in the awarding of a Baghdad Palace dining facilities subcontract.

The misconduct took place more than five years ago, and the company says that it has adopted new compliance protocols.

(Source: Bloomberg)

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