Protests halt Iraqi contract

RIVAL bidders have called foul over the award of a $327m (£178m) contract to equip the Iraqi army to a US consortium, which is said to have little experience and to have tendered an unrealistically low bid.

The US Army has halted work on the contract pending an inquiry into two official protests against the award.

The contract was awarded last month by the Coalition Provisional Authority in Iraq to a consortium led by Nour USA, a Virginia-based company, the chairman of which, Huda Farouki, is a close friend of Iraqi Government Council member Ahmed Chalabi.

'The filing of the protests triggered an automatic stay of performance of the contract. Consequently, by a letter dated 20 February, the contracting officer issued a stop-work order to Nour,' said Army spokesman Major Gary Tallman.

Contracts awarded in Iraq have been dogged by controversy and allegations ranging from favouritism to American firms to overcharging for services and products.

The disputed contract covers supply of military vehicles, assault rifles and basic equipment.

Nour USA describes itself as an international investment and development company.

The protests were filed by Polish State arms trading company Bumar and another company called Cemex Global.