Wednesday, October 17, 2007

Are Sara Lee and others gouging the military?

Sara Lee (she of the size 14 carbon footprint), Perdue, ConAgra are being investigated by the US Justice Department for potentially overcharging the military as a part of deals made by their consultants — who are former military procurement officers.

According to a story in the Wall Street Journal,

Investigators from the Justice Department and the Defense Department are looking into deals that Perdue Farms Inc., Sara Lee Corp., ConAgra Foods Inc. and other U.S. companies made to supply the military, according to people involved in the inquiry. The companies made the deals with the help of former U.S. military procurement officials they hired as consultants or executives.

The inquiry is focused on whether the food companies set excessively high prices when they sold their goods to the Army's primary food contractor for the war zone, a Kuwaiti firm called Public Warehousing Co. A related question is whether Public Warehousing improperly pocketed for itself refunds it received from these suppliers. Public Warehousing bought vast amounts of meat, vegetables and bakery items from the food companies, and delivered them to U.S. troops.

Read more here.

1 comment:

News Sophisticate said...

Ms. PookyShoehorn loves to post in the morning. Stay away from Sara Lee.

The name taste good. Everything else tastes like $hit...and apparently it costs way too much