Company officials being investigated for money laundering

Five Asians living in Kuwait, an Arab and two Kuwaitis are among the owners and officials of 12 companies that are under intensive investigation by security and legal entities in Kuwait, and officials from the US Defense Department’s Office of the Inspector General, and other agencies.

The case under investigation involves illegal tendering, widespread corruption and money laundering, in the awarding of defense contracts in Kuwait. Companies owned by the suspects were found to have colluded and collectively bid for contracts offered by the US Army, in violation of rules and regulations set by the Central Agency for Public Tenders in Kuwait and the US Defense Department.

In addition, the companies and officials are also suspected of illegal transactions and remittance of millions of dollars to and from Kuwait. Follow-up by the local security services in coordination with the relevant legal authorities are continuing to monitor the suspicious personal accounts of the individuals and their financial transactions. The case is expected to be referred to the Public Prosecution once the investigations are complete.

The investigations also implicated a US resident who was an employee of the US contracts office, and left the country two months ago, after awarding of the contracts to the suspect companies.

Meanwhile, a contract secured from the US Army by one of the suspicious companies and worth around KD45 million has been canceled as it was found to be in violation of contract terms. In addition, another contract valued at KD30 million is also known to be under investigation, after complaints were received that there were defects in the method used to evaluate and compare the contract.