Afghan munitions supplier suspended

NEW YORK, March 27 (UPI) -- A fledgling company identified as the main supplier of munitions for Afghanistan has been suspended from U.S. government contracting.

The U.S. Army took action after an investigation into questionable activities by AEY Inc., of Miami Beach, Fla., including the reported furnishing of 40-year-old ammunition in decomposing packaging for Afghan troops and police, The New York Times said Thursday.

The Times said much of the ammunition supplied under a $300 million contract came from aging stockpiles determined to be unreliable and were made in China, a possible violation of U.S. law and a reason cited for the suspension.

The company's president, Efraim E. Diveroli, also was accused of misleading the Army by saying the the munitions were Hungarian, the Times said.