US sues contractors over troop trailers in Iraq

Last Updated: Tue, Nov 20, 2012 19:30 hrs

The U.S. government has filed a civil lawsuit that accuses a Houston-based global construction company and its Kuwaiti subcontractor of allegedly submitting inflated claims to install trailers for Iraq War troops.

The complaint filed this week says KBR Inc. subcontracted First Kuwaiti Trading Co. in 2003 to install some 2,250 trailers for about $80 million.

It says First Kuwaiti later tacked on $49 million in charges. It claims KBR passed the extra charges on to the U.S. government knowing that at least some were inflated.

The government contends one of the overcharges was $23,000 a month to lease a crane when the actual price was about $8,000.

A KBR statement says the claims are "baseless and without merit." Messages seeking comment from First Kuwaiti weren't returned.

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