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Wednesday, November 29, 2006

KBR to pay $8 million to settle fraud allegations for an Army contract

WASHINGTON (CNN) -- Halliburton subsidiary Kellogg Brown and Root has agreed to pay $8 million to settle allegations the firm overcharged the U.S. Army for logistical support of military operations in the Balkans in 1999 and 2000.

The allegations involved double billing and delivery of products that did not conform to requirements for use in construction of an Army camp in Kosovo. Other claims involved inflation of prices for various goods resulting from the alleged failure to ensure competitive procurements, the Justice Department said.

"The Department of Justice remains committed to vigorously pursuing allegations of procurement abuses affecting the military," said Peter Keisler, assistant attorney general for the department's Civil Division.

The Justice Department said the settlement resolves allegations that concerned various purchase orders awarded to 10 foreign KBR subcontractors or vendors. --From CNN Justice Producer Terry Frieden (Posted 1:05 p.m.)

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