Wednesday, October 17, 2007

Food Companies Under Investigation for Fraud

The Wall Street Journal reports (here) in a front-page article that a number of food companies, including Sara Lee Corp. and ConAgra Foods Inc., are being investigated by the Department of Justice and the Pentagon for their role in providing supplies through a Kuwait company for the troops in Iraq.  Among the areas under investigation are whether discounts and rebates provided to the Kuwaiti company were passed on to the government under its cost-plus contracts, and whether military contracting officials were designating specific companies as providers rather than allow for a more competitive selection process.  This is the latest in a string of investigations related to the award of contracts in the Iraq and Afghanistan wars, and the Department of Justice's Procurement Fraud Task Force will likely have even more work to do. (ph)

Fraud, Investigations | Permalink

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