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Navy Fraud Case: Contractor Suspension Lifted

The New York Times reports that “the Navy has quietly lifted the suspension of a shipping contractor under investigation for possible fraud, allowing the company to compete for new work. In exchange, the company has agreed to pay for an independent audit that could help the Justice Department determine how much it may have overcharged the government, as the Navy has claimed.”  

“Records show that the Navy this month decided to reinstate Inchcape Shipping Services, a company based in Dubai in the United Arab Emirates. The move came after a federal judge questioned whether the service had performed a thorough enough examination of evidence to justify the suspension.”  

“Contracting experts said it was unusual for the government to turn to an outside auditor in this type of case, and some questioned whether an independent firm could do as thorough a job as federal agents.”

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