Agility In Military Smack Down

     Just when you thought that those charges of conspiracy and fraud in the logistics industry could not get worse, or lower, or more numerous, comes news out of a court room in Atlanta, Georgia this week that Public Warehouse Corporation (PWC) now known as Agility Logistics based in Kuwait has been handed an indictment charging that PWC overcharged the U.S. Army to provide food and medicine to U.S. soldiers serving in Iraq, Kuwait and Jordon.
     So now next Thursday as combat soldiers out in the desert somewhere gather around their traditional Thanksgiving holiday turkey meal, the specter of accusation and denial about who did what and how much it cost to deliver the cranberry sauce flashes around the world.
     For its part Agility has denied any wrongdoing saying in a statement:
     "An indictment and a complaint are merely allegations.
     “PWC is confident that once these allegations are examined in court, they will be found to be without merit,"
     Gentry Shelnutt, acting U.S. Attorney for the Northern District of Georgia indicates that Agility may not easily wiggle itself out of this one:
     "The indictment alleges PWC submitted false information and manipulated prices to overcharge for food," Shelnutt said.
     "This indictment is only the first step. “Our investigation of entities and persons who have defrauded the United States and our military is ongoing."
     For the record the fraud and conspiracy charges now on the table amount to $60 million and occurred in connection with contracts issued by the U.S. Department of Defense between 2003 and 2005.
     Agility is a global provider of integrated logistics solutions listed on the Kuwait stock exchange.
     Six counts of wrong doing have been leveled against PWC saying the company committed crimes against the United States including: conspiracy to defraud, committing major fraud, making false statements, making false, fictitious or fraudulent claims and wire fraud.
     According to one report the case seems to hang on a whistle blower suit filed by Kamal Mustafa Al-Sultan, the owner of a company that partnered with PWC.
     The outcome of this case could have huge impact on PWC that currently holds (read the next number carefully) $8.5 billion in contracts to deliver goods for the U.S. military.
     PWC said that its business with the U.S. military would continue as this case plays out.
     But the smack down with USA law enforcement impacted PWC’s stock and the entire Kuwait stock market as well after U.S. Defense Logistics Agency suspended PWC from being awarded any new business until it determines the company is presently responsible.
     It’s worth mentioning that often and throughout history, cases of this type pop up.
     As example, in 2007 The Wall Street Journal reported that Sara Lee Corp, ConAgra Foods Inc, Perdue Farms Inc and others were being investigated for possible fraud and corruption in supplying the U.S. military in Iraq.
Geoffrey

India Agents In Goa Confab

(Exclusive)—The Air Cargo Agents Association of India (ACAAI) will hold their 36th annual December 3-6 2009 at the Pearl Orient in Goa..
     The last meet scheduled for Bahrain in 2008 – had to be cancelled due to 26/11 (the terror strike in Mumbai).
     ACAAI is the only national association representing the air cargo Industry.
     The group was formed in 1970 with only 16 members, but today has approximately 600 members.
     ACAAI is affiliated to international organizations such as IATA, FIATA, FAPAA, etc. and enjoys the unique privilege of having the only formalized forum for direct discussions with IATA.
     Coming as it does after a long gap, the convention will take up the global economic crisis and its effects on the air cargo industry.
     As J Krishnan, ACAAI President put it, “The downturn has had its impact on our industry, both directly and indirectly.”
     Talking to Air Cargo News FlyingTypers, Krishnan said:
     “A convention is not an event to participate and forget. It is the culmination of the work rendered through the year for the member and also an opportunity to interact nationally with our members.
     “Concerns affecting our members will be heard and acted upon.
     “The main refrain will be to understand, accept and harness the changes for a vibrant industry.”
     In keeping with the present conditions, the convention’s theme is: Integrated Logistics - New World Order.
     “The theme,” said Krishnan, “is to help review and plan for the future and not necessarily a statement on the economy.      “The past two years has witnessed an unprecedented downturn and many old rules of the game are no longer valid. “But the new rules are yet to be framed. “The theme, then, is the first attempt to prepare to face a changed and changing environment.”
     Among the changes that ACAAI will be focusing on, range from EDI to infrastructure.
     ACAAI has senior members from its Board of Advisors in the Civil Aviation Core Group (CACG) set up by the government to advise on the civil aviation policy.
     As for infrastructure development, the association has suggested that there was an urgent need for a review.
     AACI also feels there should be a vision at the local level for effectiveness of the airports and a detailed look should be taken at the overall transaction, cost and time that the customer had to bear.
     The agenda, therefore, for discussions will be varied.
     Bharat Thakkar, ACAAI Vice President pointed out to ACNFT that there would be “six business sessions spread out over the two-day convention.
     These sessions would be addressed by distinguished speakers from India and across the world and deal with topics like ‘New World Order and its impact on India’, ‘Quality and Cost – The Management Challenge’ and ‘Infrastructure – It’s about time!’”
     Perhaps, one of the most important sessions that a number of members are looking forward to is the one on technology: ‘Technology – Power Tool for Excellence in Delivery’. Currently, there is no industry level platform and each segment of the air cargo industry has its own EDI system, thereby fragmenting the EDI change process. These segments need to be integrated and a uniform standalone system, which is able to communicate effectively with each segment of the industry, needs to be put in place urgently. ACAAI is in the process of establishing such an industry platform.
     Vice President Thakkar pointed out that “ACAAI in association with Kale Consultants had developed a new technology platform for networking among the cargo fraternity called Uplift.” Kale will make a presentation in this regard at the convention.
     The details of the system will be discussed at the convention, before it is launched.
     After all the brainstorming at the business sessions, Sunil Arora, the Convention Chairman, said that “this year’s convention at Goa will also be an opportunity for ACAAI members to let their hair down and enjoy the sun, sand and sea as well as the place’s unique culture and hospitality”.
Tirthankar Ghosh

Harald Is One Tough Cop

     “Our aim is to create a security program that suits customers.
     “That’s why we guarantee top security standards.
     “Our approach is to consistently invest in innovative technology, and as the industry leader offer our customers and service partners security at the cutting edge.”
     Lufthansa Cargo security chief Harald Zielinski eats, sleeps and probably, if he drinks—imbibes security as well.
     He is top notch, smart and street cop wise with a feel for things at first glance gained as a one-time uniformed police officer pounding a beat as did his Dad before him on the streets of Frankfurt, Germany.
     Don’t be surprised, if during the holidays while others gather under the mistletoe for an embrace, Harald will be roaming about Lufthansa’s cavernous FRA cargo complex with treats for any sniffer dogs within reach there.
     After all it was Herr Zielinski who said more than seven years ago:
     “What air cargo needs for security is a machine that acts like a giant sniffer.”
     Next March 4, Lufthansa Cargo holds its second Air Cargo Security Conference, a one-day event in Frankfurt. The agenda will include presentations and discussions with national and international experts on current trends and perspectives in air cargo security.
     Aside from analyzing the international security situation, the conference will look into the background of security regulations and discuss the technological, process and personnel challenges in the security debate. Elsewhere Mr. Zielinski reveals, “Lufthansa Cargo is investing a further two-digit euro millions in security measures in 2009.
     “At FRA, Lufthansa Cargo is utilizing new-generation x-ray technology in its security regime.
     “For the first time, the new equipment with a tunnel size of 1.8 x 1.8 metres, scans entire LD3 airfreight containers through and through, without having to open them to x-ray individual shipments inside.
     “Our new technology will enable Lufthansa Cargo to comply with U.S. security requirements for air cargo, including all inbound and outbound cargo on passenger aircraft to the USA that must be 100%
screened from August 2010.
Geoffrey

Udo Preissner
Frankfurt Hahn Airport

Ralf Auslaender
leisure Cargo

Contact! Talk To Geoffrey

RE:   Southern In Northern Climes

Dear Geoffrey,

     Nice pictures of that Southern B747F in Friday’s Typers.
     May I add that Lufthansa Charter chartered the aircraft from SO for this flight!
     I think if you count moose as part of the population, there may have been 25 in attendance as the aircraft landed!

Chris Buscemi
Lufthansa Charter
General Manager, The Americas