Panel Examining Flaws In Food-For-Troops Contract

By: Associated Press
By: Associated Press

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Thursday, May 24, 2012

Lawmakers say a Pentagon agency and the contractor it hired to supply troops in Afghanistan with food and water are both to blame for a massive billing dispute that has heightened concerns over the use of American tax dollars in war zones.

In separate letters sent Thursday to the Defense Logistics Agency and Supreme Foodservice, a House oversight subcommittee investigating the $5.5 billion contract said the two sides never agreed on pricing terms even as the scope of the contract expanded rapidly with the arrival of thousands more U.S. combat forces to combat a Taliban surge.

The logistics agency is demanding that Supreme of Ziegelbrucke, Switzerland, return more than $750 million in overpayments. But the company has claimed it is owed $1 billion more than it has already been paid.

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