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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

International Oil Trading Company

Supreme Fuels Trading v. Sargeant (Bribery)

Date: 10/22/2008 (Date of Filing)

Misconduct Type: Ethics

Enforcement Agency: Non-Governmental

Contracting Party: Defense - General

Court Type: Civil

Amount: $5,000,000

Disposition: Judgment Against Defendant

Synopsis: A federal lawsuit alleged International Oil Trading Company engaged in a conspiracy to pay bribes to Jordanian government officials to secure the exclusive right to transport fuel across Jordan to American military forces in Iraq. The lawsuit, filed by competitor Supreme Fuels Trading FZE, alleged IOTC and its owners – Harry Sargeant, III, and Mustafa Abu-Naba’a – paid bribes to key Jordanian officials to obtain a letter of authorization, which is required in order to bid on the fuel transport contracts, effectively eliminating competition and causing the U.S. government to pay more for fuel. In October 2008, the House Committee on Oversight and Government Reform, which looked into IOTC’s contracts, reported to Secretary of Defense Robert Gates that IOTC “appears to have engaged in a reprehensible form of war profiteering” and may have overcharged the U.S. government as much as $180 million. Committee Chairman Henry Waxman has asked for a Defense Department investigation. In May 2011, the court ruled in favor of Supreme Fuels and awarded it $5 million. See related International Oil Trading Company instance, “Al-Saleh v. Sargeant (Fraud).”