Statement From ANHAM Regarding Claims Made in the SIGIR Report

VIENNA, Virginia, July 30, 2011 -

The Special Inspector General for Iraq Reconstruction (”SIGIR”) has publicly released its conclusions from a purported “audit” that it conducted with respect to the Strategic Supply Chain Management and Distribution System Contract (the “Contract”) which was awarded to ANHAM FZCO (the “Company”) in September of 2007.  These conclusions are false, without legal or factual justification and convey the completely unfounded claim that the Company overcharged the U.S. Government for one or more items.  In fact, the Company saved the U.S. Government and the U.S. Taxpayers nearly 153 million dollars ($153,000,000) through its performance of the Contract.

The Company was awarded the Contract for its competitive bid of 115 million dollars ($115,000,000).  This price was 132 million ($132,000,000) less than the Government’s independent estimate.  This was 53 percent below what the Government had concluded it would have to pay for performance and was substantially more below what was expended, on information and belief, on the contract performance prior to ANHAM’s operation thereof.  Through the efforts and capabilities of ANHAM, the U.S. Government reduced its costs by more than half on the Contract, which is axiomatic of the fallacies in the SIGIR conclusions.

SIGIR also contends that ANHAM’s subcontractors may have overcharged for various purchases.  This is also false.  Every purchase by every subcontractor was the result of a competitive bidding process where the lowest price subcontractor was selected and not a single screw or nail was purchased without prior, advance approval by the U.S. Government after their review of the competitive bidding process amongst potential subcontractors.  Full disclosure of the nature of every potential subcontractor was fully disclosed to the U.S. Government.

The Company takes enormous exception to the SIGIR implications.  Its suggestions -– based on innuendo rather than hard facts -– are not the result of a meaningful “audit.”  ANHAM is continually audited by the Defense Contract Audit Agency (DCAA) and welcomes such true audits.  ANHAM is also very proud of the savings that it effectuated for the U.S. Government and U.S. Taxpayers on the Contract.

ANHAM has been a longtime and loyal partner to the U.S. Government and remains proud of its strong track record of providing the U.S. Government with high quality solutions at the lowest possible cost to the U.S. Taxpayer in remarkably hostile environment.  ANHAM has always operated with complete transparency and compliance and is continually audited by the Defense Contract Audit Agency (DCAA).  ANHAM welcomes such audits as it does the opportunity to work closely with the SIGIR to resolve these inaccurate conclusions.

Trish Wexler, twexler at voxglobal.com