US investigates three South Korean companies over conspiracy to overcharge US military by millions of dollars
- The bid-rigging investigation is part of an aggressive effort by the US Justice Department to crack down on companies abusing military contracts
The three companies were not named in filings in US federal court in Ohio that described a conspiracy that involved a total of six companies that overcharged US military bases in South Korea for fuel.
The South Korea bid-rigging investigation is part of a more aggressive effort by the US Justice Department to crack down on companies that defraud the US government on military contracts.
The court papers filed by the US Justice Department after it settled with three other companies last month named SK Energy Co Ltd; GS Caltex Corp, 50 per cent owned by Chevron; and Hanjin Transportation Co Ltd. They agreed to pay a total of US$236 million in criminal fines and civil damages.
The Justice Department estimated that the bid rigging occurred from about 2005 to 2016. The government procurement data site GovTribe said that between 2008 and 2013 the major sellers of fuel to US military bases in South Korea were S-Oil, GS Caltex, SK Energy, Hanjin, Hyundai Oilbank and Jier Shin Korea.
S-Oil Corp said that it was “unaware of any investigation.” S-Oil is partially owned by Aramco Overseas, according to both Aramco’s and S-Oil’s websites.