Kuwait's PWC challenges U.S.claims

WASHINGTON, Nov. 17 (UPI) -- Kuwait's Public Warehousing Co. said it was confident a six-count fraud charge by a U.S. federal grand jury would be found without merit in the courts.

A federal grand jury indicted PWC on charges of conspiracy to defraud, committing major fraud, making false statements and wire fraud against the United States.

The U.S. Justice Department said all charges relate to a multibillion-dollar U.S. Department of Defense contract for PWC to feed U.S. troops in Iraq, Kuwait and Jordan.

The indictment claims PWC submitted false information, manipulated prices and reduced the size of pack sizes of products to overcharge the United States.

"Others who have engaged in similar conduct should beware," warned Gentry Shelnutt, acting U.S. attorney for the case. "This indictment is only the first step."

PWC in a response statement said it was shocked the U.S. government chose this path.

"PWC has for some time worked with the government to seek a mutually agreeable resolution to this contract dispute and is surprised and disappointed that the government has decided to take this action," the statement read.

PWC claims it was more successful at delivering food to U.S. military personnel in war zones than other vendors, noting more than 30 of its employees were killed in the course of action.

"An indictment is merely an allegation," the statement added. "PWC is confident that once these allegations are examined in court, they will be found to be without merit."