WASHINGTON, March 16 (UPI) -- The U.S. Justice Department said Wednesday it has launched a counterattack against KBR, alleging two company managers took kickbacks from a subcontractor.
Kellogg Brown & Root Services Inc. has a lawsuit against the government pending in the U.S. Court of Federal Claims.
Justice officials allege in a release KBR managers received kickbacks from a dining facility subcontractor retained through KBR's contract with the U.S. Army to provide logistical support to the military in Iraq and elsewhere.
The government's counterclaims assert that, from late 2002 through 2003, two KBR managers, Terry Hall and Luther Holmes, received more than $45,000 in kickbacks from Mohammad Shabbir Khan, vice president of Tamimi Global Co.
Khan alleged paid the money to ensure Tamimi was treated favorably by KBR. KBR awarded Tamimi subcontracts worth more than $400 million.
The subcontracts were awarded under a contract the Army gave KBR in 2001.
"Kickbacks in military subcontracts open the door to wartime profiteering and corrupt the integrity of our government contracting process," said Tony west, assistant attorney general for the Civil Division. "When we learn of such illegal conduct at the expense of taxpayers, we will pursue it."
KBR's lawsuit seeks $41 million the government required it to return after an audit.