APL Ltd. to Pay $9.8 Million to Resolve Claims Under the Department of Defense Shipping Contract - Global Trade Magazine
  November 3rd, 2015 | Written by

APL Ltd. to Pay $9.8 Million to Resolve Claims Under the Department of Defense Shipping Contract

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  • US alleged APL billed DoD for tracking services when tracking devices were absent or didn’t work.
  • DOJ official: APL settlement demonstrates commitment to ensure that gov’t contractors perform honestly.
  • The APL-US civil settlement involved no determination of liability.

APL Limited has agreed to pay the government $9.8 million to resolve allegations that it violated the False Claims Act in connection with a contract to provide GPS tracking of shipping containers in Afghanistan, the U.S. Justice Department announced.

APL, an ocean carrier based in Scottsdale, Arizona, is a wholly-owned American subsidiary of Singapore-based Neptune Orient Lines Limited.

The Department of Defense contract required APL to affix a satellite tracking device to each shipping container transported from Karachi, Pakistan, to U.S. military bases in Afghanistan when the Department of Defense (DoD) requested the tracking services.  The United States alleged that APL billed DoD for tracking services despite knowing that the tracking devices completely or partially failed to transmit data, or were not affixed to shipping containers. The government also claimed APL attached a single satellite tracking device to two shipping containers despite being required to affix one device to every container.

“Today’s settlement demonstrates our commitment to ensure that contractors doing business with the military perform their contracts honestly,” said Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.

“Thanks to the collaborative efforts of many U.S. law enforcement professionals, APL is today being held accountable for their actions,” added Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.

The claims resolved by the civil settlement are allegations only; there has been no determination of liability.

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