With increased scrutiny on Iran, the Pentagon and FBI are investigating whether defense contractor KGL has violated U.S. sanctions by doing business with the blacklisted Arab state. KGL denies the allegations.
A new watchdog report finds that the FBI and the Pentagon are quietly investigating whether military contractor Kuwait and Gulf Link Transport Co. has illegal ties to Iran, despite assurances from the Defense Department that there is no indication the company's business dealings ever violated U.S. law.
The report by the Project on Government Oversight finds that the contractor, known as KGL, continues to hold $1 billion worth of contracts with the U.S. military as the FBI and the Pentagon's Defense Criminal Investigative Service probes allegations that it deals with Iranian shipping interests, ports, and front companies despite sanctions meant to derail Tehran's nuclear ambitions. "No contractor to the U.S. military has ever been debarred for doing business with Iran, so KGL could emerge as a test case," POGO's Adam Zagorin writes.
The investigation is at least a year old, according to documents and interviews, and appears to remain active. POGO writes that federal agents at Dulles airport pulled aside a senior KGL executive trying to enter the country and questioned him for hours about the firm's ties to Iran.