Government auditing ship-supply company

Dubai-owned firm accused of ripping off U.S. navy for millions

Canada’s Public Works department is auditing past work done by a ship-supply company that is under investigation in the United States for overcharging the navy by millions of dollars.

Inchcape Shipping Services, a marine services provider owned by the government of Dubai, was suspended last week from accepting new contracts or working on existing contracts in the U.S.

Navy spokesman Rear Adm. John Kirby said the suspension was put in place because of evidence of the company’s “questionable business integrity.”

The U.S. Department of Justice is investigating whether Inchcape pocketed savings after paying commissions to subcontractors who gave large discounts. The investigation was launched after an Inchcape employee brought the company’s questionable practices to light in 2008.

Public Works said Tuesday that it’s decision to “undertake a number of sample audits” on past work done by Inchcape was triggered by actions being taken against the company in the U.S. The department would not discuss the scope of the audits, saying that to do so could compromise them.

According to public disclosures on Canada’s Department of National Defence website, the department awarded Inchcape 47 contracts totalling more than $3.5 million during the 2012-2013 fiscal year. The company provided mooring services, combat ships and logistical support.

Public disclosures dating back to April 2004 show Inchcape has been awarded more than 160 contracts totalling almost $20 million in the last nine-and-a-half years.