Americas News
U.S. Joins Lawsuit Against Inchcape for "Overcharged" Ship Husbanding
The U.S. Department of Justice announced Wednesday that the government has joined a lawsuit against UK-headquartered Inchcape Shipping Services Holdings Limited (Inchcape) and a number of its subsidiaries, alleging that the company knowingly over billed the U.S. Navy for ship husbanding services, including fuel delivery, from 2005 to 2014.
The lawsuit asserts that Inchcape deliberately submitted invoices to the Navy overstating both the quantity and rate of goods and services provided, and in some cases double-billed.
"Those who contract with the federal government and accept taxpayer dollars must follow the rules," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's Civil Division.
"The Department of Justice will not tolerate contractors who submit false claims to defraud the armed forces or any other agency of the United States."
Inchcape is said to have provided the services to Navy ships at ports in several locations across the globe, including a number in southwest Asia, Africa, Panama, North America, South America, and Mexico.
It is reported that the case will be jointly handled by the Civil Division's Commercial Litigation Branch and the U.S. Attorney's Office of the District of Columbia, and will involve aid from the Department of the Navy and the Naval Criminal Investigative Service.
"Ensuring that federal contractors deliver the goods and services at the agreed upon prices in return for receiving the taxpayers' money is a priority for the U.S. Attorney's Office," said U.S. Attorney Channing D. Phillips of the District of Columbia.
"This lawsuit reflects our commitment to combat fraud against federal government agencies."
In 2013, Ship & Bunker reported that the U.S. Navy had suspended contracts with Inchcape Shipping Services (ISS) over "questionable business integrity."
