Saudi firm settles kickback allegations for $13M

The Justice Department says a Saudi Arabian company has agreed to pay the U.S. government $13 million to resolve kickback allegations involving contracts to support the Army's operations in Iraq and Kuwait.

The department says Tamimi Global Co. Ltd. paid kickbacks to a Kellogg Brown & Root Inc. employee and paid illegal gratuities to a former Army sergeant to obtain contracts. Both pleaded guilty earlier to federal charges of receiving illegal payments.

The Saudi company has entered a deferred prosecution agreement under which it must institute a strict compliance program to ensure that the company and its employees must abide by legal and ethical standards required by U.S. government contracts.