Louis Berger, a major construction company headquartered in New Jersey, has agreed to pay out a record $69.3m in fines (pdf), the largest ever such penalty imposed on a contractor working in the war zones of Afghanistan and Iraq. The company has been awarded billions of dollars in contracts for the construction of roads, schools and electrical plants in Afghanistan.
Harold Salomon, a former senior financial analyst at the company, discovered that company officials were sending bills for items like the cost of the music system in its Washington, DC office to the US Agency for International Development (USAID). Salomon blew the whistle on estimated overcharging of up to $20m and took the company to court with the help of Phillips & Cohen, a trial law firm in Washington, DC.
"Today I can affirm to those who told me the Louis Berger Group can get away with anything that they were wrong," Salomon said in a press statement, when the settlement was announced on 5 November. "To those who said, 'If you cannot beat them, you have to join them,' I say they were wrong, too."
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