Inchcape Responds to U.S. Navy Contracting Ban

In a statement late yesterday, the U.S. Navy announced a ban had been placed on Inchcape Shipping Services (ISS) that suspends them from contracting with the Federal government, to include entering into any new contracts, and exercising options under existing contracts.  The decision was based upon “evidence of conduct indicating questionable business integrity affecting ISS’s present responsibility to be a Government contractor,” according to Navy spokesperson Rear Admiral John Kirby.

In an emailed statement tonight, Inchcape Shipping Services spokesperson Sheila Armstrong responds:

“The US Navy Notice relates to supply work involving a small number of navy ships between 2005 and 2008, which was the subject an enquiry by the Department of Justice [DoJ] back in 2010. Since then we have been discussing [some aspects of] our billing for this work with the DoJ with a view to bringing this matter to a conclusion.

The company conducted an independent audit into its billing processes in 2009 and believes that this provided full answers to all of the questions raised. We are proud to work closely with the US Navy and continue to do so on a number of important mandates. We will continue to engage with the DoJ and US Navy and hope this matter can be resolved swiftly.”

Based on another recent scandal involving U.S. Navy contractor, Glenn Defense Marine (Asia), it seems likely that whatever it is that prompted U.S. Navy officials to place such a far reaching ban, may also implicate personnel on both sides.

Does it take two to tango in this case?  We shall no doubt see.