Profile: First Kuwaiti General Trading & Contracting
First Kuwaiti General Trading & Contracting was a participant or observer in the following events:
Former KBR subcontract administrator Anthony J. Martin pleads guilty to violating the Anti-Kickback Act. Martin admits to taking bribes from a Kuwaiti company in 2003 in return for granting a $4.67 million contract to the firm. Although the Justice Department does not identify the Kuwaiti firm, other court documents subsequently name the firm as First Kuwaiti General Trading & Contracting (see September 21, 2007). Martin worked from February 2003 through February 2004 in Kuwait, where he solicited bids from prospective subcontractors under KBR’s largest contract with the US Army, the Logistics Civil Augmentation Program (LOGCAP III). Martin’s conviction is part of a much larger investigation mounted by the Justice Department in Rock Island, Illinois, investigating corporate fraud in the provision of logistics to the US military deployed in Iraq and Afghanistan (see October 2006 and Beyond). Martin has admitted to accepting $10,000 from the managing partner of First Kuwaiti, Lebanese businessman Wadih Al Absi. He was to receive almost $200,000 more, but testified in his plea bargain agreement that he felt guilty about taking the $10,000 and subsequently refused to take any more. Martin faces up to ten years in prison and possible restitution. [PR Newswire, 7/13/2007; Associated Press, 9/21/2007]
First Kuwaiti General Trading & Contracting, the Kuwaiti firm building the US embassy in Baghdad, is accused of agreeing to pay $200,000 in kickbacks in return for two unrelated Army contracts in Iraq. According to now-sealed court documents, First Kuwaiti worked with a manager for KBR, the US contracting firm that handles logistics for the US military in Iraq and Afghanistan. The document is based on grand jury testimony from the former KBR manager, Anthony J. Martin, who pled guilty in July to taking bribes from First Kuwaiti in 2003 (see July 13, 2007). The US government has tried to keep First Kuwaiti’s name out of public records related to Martin’s case. Martin told the grand jury that he took part in a bribery scheme with Lebanese businessman Wadih Al Absi, the controlling official of First Kuwaiti. That firm has done a large amount of work for US government entities, including the Army Corps of Engineers and the US Marine Corps. It is under investigation by Congress for its allegedly illegal labor practices, and the Justice Department is investigating the firm for alleged contract fraud on the embassy project. J. Scott Arthur, one of Martin’s defense lawyers, says the US government is improperly withholding evidence about Martin and his relationship with Al Absi and First Kuwaiti. Martin has said that he took kickbacks in return for his awarding a $4.6 million contract to First Kuwaiti to supply 50 semi-tractors and 50 refrigeration trailers for six months. A month later, Martin awarded First Kuwaiti an additional $8.8 million subcontract to supply 150 more semi-tractors for six months. In return, First Kuwaiti agreed to pay him $200,000. Martin says he took $10,000, then refused to take any more money. Martin will testify in the trial of former KBR procurement manager Jeff Mazon (see June 2003). First Kuwaiti denies any wrongdoing, and KBR says through a spokesperson that it “in no way condones or tolerates unethical behavior,” adding, “We have fully cooperated with the Department of Justice.” [Associated Press, 9/21/2007]
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