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US Navy suspends contract over suspicions of overbilling

BRITISH maritime services provider Inchcape Shipping Services (ISS) multi-million dollar contract with the US Navy has been suspended amid allegations of over-charging.

US Navy suspends contract over suspicions of overbilling
04 December 2013 - 19:49
US Navy suspends Inchcape contract over suspicions of overbilling

BRITISH maritime services provider Inchcape Shipping Services (ISS) multi-million dollar contract with the US Navy has been suspended amid allegations of over-charging.

Concerns about its business integrity have lead to ISS and its affiliates being barred from contracting with the federal government.

The company, whose core business is ship agency work, is understood to have been accused of over-charging by more than US$5 million in a particular region, reports Lloyd's List.

Rear Admiral John Kirby said the suspension was based on "evidence of conduct indicating questionable business integrity affecting ISS's present responsibility to be a government contractor".

Documents were sent to ISS on November 26 setting out the allegations. ISS has 30 days to appeal.

The suspension is linked to a 2010 Department of Justice inquiry into alleged unlawful charging by military contractor Kellogg Brown & Root Services.

A statement from ISS said the suspension notice from the US Navy relates to supply work involving a small number of US Navy ships in 2005-2008.

ISS said it had been discussing aspects of its billing for the work carried out during this period with the department with a view to bringing the matter to a close.

"The company conducted an independent audit into its billing processes in 2009 and believes that this provided full answers to all of the questions raised," ISS said.

"We are proud to work closely with the US Navy and continue to do so on a number of important mandates. We will continue to engage with the DoJ and US Navy and hope this matter can be resolved swiftly."

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