Kuwait’s Agility, a logistics company with multi-billion dollar Pentagon contracts, said it was co-operating with a US investigation into military supplies fraud, the Gulf Daily News reported. A US prosecutor charged Texas businessman Samir Mahmoud Itani with fraud last month, accusing his company, American Grocers, of claiming trucking costs it didnot incur between 2004 and last year.

Agility said the US Attorney’s offi ce had incorrectly identifi ed American Grocers as a sub-contractor that had directly supplied the Kuwaiti company, formerly known as Public WarehousingCompany (PWC).

Instead American Grocers was a“second tier subcontractor” that workedwith one of Agility’s suppliers, said Agility,the Gulf’s largest logistics companyby market value.

Agility had alerted US authorities after a 2005 audit revealed “irregular inland freight shipping charges levied by American Grocers”, and later proposed paying back the government, it said.