Some American food companies are under scrutiny
in a federal probe of possible fraud and corruption in the military's
food-supply operations for the Iraq
war.
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 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.