An American-owned company operating from Kuwait paid hundreds of thousands of dollars in bribes to American contracting officers in efforts to win more than $11 million in contracts, the government says in court documents.
The Army last month suspended the company, Lee Dynamics International, from doing business with the government, and the case now appears to be at the center of a contracting fraud scandal that prompted Defense Secretary Robert M. Gates to dispatch the Pentagon inspector general to Iraq to investigate.
Court documents filed in the case say the Army took action because the company was suspected of paying hundreds of thousands in bribes to Army officers to secure contracts to build, operate and maintain warehouses in Iraq that stored weapons, uniforms, vehicles and other matériel for Iraqi forces in 2004 and 2005.
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