Kuwait and Gulf Link Holding Company (KGL)

"The contractor, Kuwait and Gulf Link Transport, better known as KGL, is a publicly traded conglomerate with hundreds of millions of dollars in U.S. military contracts. The criminal charges, together with other court documents and unreported revelations made by former executives of a KGL affiliate in a U.S. lawsuit, involve KGL’s possible violation of U.S. sanctions against Iran, and accusations of potentially illicit flows of cash from Russia, Iran and Syria. Taken together, the allegations raise troubling questions about the American military’s heavy reliance on the firm." (June 2017) (https://warisboring.com/a-u-s-military-contractor-allegedly-laundered-money-from-iran/)

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KGL’s business activity in Iran can be seen primarily through its connection to Combined Shipping Company, which is a joint venture with Valfajr-Shipping Company, an Iranian-owned entity that OFAC added to the SDN list in 2008. In addition, in 2005, KGL TC revealed that KGL Port Management Company made an offer to the Iranian Ports authority to operate the Bandar Abbas port in Iran.” (Zawya, “KGL Port Management Negotiating with Iran for Operating Bandar Abbas Port,” 4/16/2005) (http://www.zawya.com/story.cfm/sidZAWYA20050416093058/KGL%20Port%20Management%20Negotiating%20with%20Iran%20for%20Operating%20Bandar%20Abbas%20Port)

"One issue Kirk has been pushing in recent days concerns the huge contracts between the Defense Department and Kuwait and Gulf Link Transport Company (KGL), which may have ties to the Islamic Republic of Iran Shipping Lines (IRISL), an entity long accused of operating a web of shell companies to evade sanctions, and three other Iranian companies already on the banned list of Treasury's Office of Foreign Assets Control (OFAC). KGL was recently awarded a nearly $750 million contract by the U.S. Army and another $42 million sole-source contract by the Defense Logistics Agency. Kirk now wants to know if the U.S. military is indirectly putting money into Iranian government coffers." (Foreign Policy. "David Cohen nomination back on track," 6/27/11) (http://thecable.foreignpolicy.com/posts/2011/06/27/david_cohen_nomination_back_on_track)

The Combined Shipping Company KSCC “is a joint venture between the ‘Kuwait and Gulf Link holding Co.’ -(KGL), one of the most prominent investors in the field of transport, logistics and technical services in the Middle East and the Iranian ‘VALFAJR-Shipping Company’ a subsidiary of IRISL Group, the main Iranian sea transporter for passengers and cargo in the Gulf region and worldwide.” (Archived Website) (http://web.archive.org/web/20080626064722/www.cscq8.com/about_profile.asp)

"A Kuwaiti shipping company that has done more than $1 billion in business with the U.S. military has also had ties to one of the men indicted in New York Monday for his alleged role in an international conspiracy to violate U.S. sanctions against Iran. Members of Congress have for months been asking the Pentagon if the defense contractor Kuwait and Gulf Link Transport (KGL) may be secretly doing business with Iranian front companies, and those questions took on fresh urgency Monday with the 317-count indictment. Among those indicted by Manhattan District Attorney Cy Vance was Moghaddami Fard, an Iranian man whose name appears on dozens of emails with top KGL executives, and who sat on the five-member board of directors of a company that was partially owned by KGL." (ABC News. "U.S. Gave Military Contracts to Firm With Alleged Iran Ties," 6/21/11) (http://abcnews.go.com/Blotter/us-gave-military-contracts-firm-alleged-iran-ties/story?id=13887038&singlePage=true)

In 2008, IRISL and 18 of its subsidiaries (including Valfajr) were added to the SDN list for “facilitating shipments of military cargo destined for the Ministry of Defense and Armed Forces Logistics (MODAFL) and its subordinate entities, including organizations that have been designated by the United Nations Security Council in Resolutions 1737 and 1747.” (US Department of State, Designation of the Islamic Republic of Iran Shipping Lines (IRISL) and Subsidiaries for Proliferation Activities, September 11, 2008) (http://www.iranwatch.org/government/US/DOS/us-dos-designationofirisl-091108.htm)

In 2010, KGL’s most recent activity in Iran involved “upgrad[ing] and “enlarg[ing] its fleet for passengers transport operations by 400 percent to include 750 buses in anticipation of new contracts [with Iran] in the future.” Presumably, this would be followed by an increase in business operations in the area. According to the Arab Times, KGL “[has a] special presence [in Iran] that has contributed to its capabilities to execute many transport and logistics contracts covering different sectors and industrial segments, including critical and sensitive sectors. (Arab Times, “KGL Moves to Boost Presence in Iran After Upgrade,” 3/7/2010) (http://www.arabtimesonline.com/NewsDetails/tabid/96/smid/414/ArticleID/150581/reftab/96/t/KGL-moves-to-boost-presence-in-Iran-after-upgrade/Default.aspx)

KGL labels itself "the premier provider of integrated Supply Chain Management services in the Middle East, fulfilling the Transportation, Logistics, Port Management, Shipping and Freight Forwarding needs of countless regional and international clients" (Company Website). KGL is a major contractor for the U.S. Defense Department in the Persian Gulf (USASpending.gov). (http://www.kgl.com/Pages/Default.aspx) (http://www.usaspending.gov/explore?fromfiscal=yes&tab=By+Prime+Awardee&fiscal_year=2003&contractorid=1173748&fiscal_year=&tab=By+Prime+Awardee&fromfiscal=yes&carryfilters=on&Submit=Go)