Prominent U.S. food companies are under scrutiny in a
federal probe of possible fraud and corruption in the military's
food-supply operations for the Iraq war, according to the Wall Street
Journal.
Prominent U.S. food companies are under scrutiny in a federal probe
of possible fraud and corruption in the military's food-supply
operations for the Iraq war, according to the Wall Street Journal.
Investigators from the Justice Department and the Defense Department are
looking into deals that Perdue Farms Inc., Sara Lee Corp., ConAgra Foods
Inc. and other U.S. companies made to supply the military, according to
people involved in the inquiry. The companies made the deals with the
help of former U.S. military procurement officials they hired as
consultants or executives. The inquiry is focused on whether the food
companies set excessively high prices when they sold their goods to the
Army's primary food contractor for the war zone, a Kuwaiti firm
called Public Warehousing Co. A related question is whether Public
Warehousing improperly pocketed for itself refunds it received from
these suppliers. Public Warehousing bought vast amounts of meat,
vegetables and bakery items from the food companies, and delivered them
to U.S. troops.
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