Title: “French Contractor Colas Djibouti Admits to Faking Concrete Testing Results for US Navy in Djibouti: to Pay $12.3 Million in Restitution and Penalties”
Company Admits to Supplying Substandard Concrete for US Navy Airfields in Djibouti
Colas Djibouti, a French contractor supplying the United States Department of Navy and the U.S. Embassy with construction materials in Djibouti, has admitted to submitting false documents and manipulated testing results in a conspiracy to sell non-compliant concrete mixes.
Colas Djibouti Faces Charges of Conspiring to Commit Wire Fraud
The subsidiary of Colas SA, a reputed French civil engineering company, has reached a plea deal with the U.S. Attorney’s Office for the Southern District of California, facing charges of conspiracy to commit wire fraud. Furthermore, the agreement includes a civil lawsuit resolution by the Department of Justice’s Civil Division, Commercial Litigation Branch.
False Certifications and Manipulated Testing Results
Colas Djibouti was required to certify that the specifications and characteristics of the concrete they supplied matched US requirements; however, they provided falsified analysis of water used in the concrete mix, including submitting a report of a store-bought bottle of drinking water on one occasion. These actions led to the supply of subpar concrete, susceptible to early cracking, surface defects, and corrosion, affecting the long-term durability of the structures.
Criminal Conduct Leads to Penalties and Restitution
The company will pay a fine of $2.5 million, provide restitution amount of $2,042,002 to the Department of Navy, and forfeit $8 million as part of the agreement reached with the U.S. Attorney’s Office.
U.S. Attorney’s Remarks on the Case
Our military’s interests must not be compromised. This criminal conduct not only undermines the trust placed in those contracted to serve our country; it also places our troops at risk.
U.S. Attorney Robert Brewer
Collaborative Efforts to Investigate the Case
The Defense Criminal Investigative Service (DCIS), Naval Criminal Investigative Service (NCIS), and Defense Contract Audit Agency (DCA) worked together to investigate the case as part of the Africa Strike Force.
Remarks from the US Department of Navy and Collaborating Agencies
Our military’s readiness depends on contractors upholding the high standards we demand. This outcome illustrates our unwavering commitment to ensuring our contractors meet those expectations, no matter where they operate.
Acting Secretary of the Navy Thomas W. Harker
Defrauding the Government not only costs taxpayers unnecessarily, but it also undermines U.S. military readiness.
Acting Assistant Attorney General Brian M. Boynton
Concrete is a critical component in military operations, and its quality must adhere to Department of Defense specifications. Our agency, in collaboration with our partners, will not hesitate to pursue those who compromise military readiness through deceptive practices.
DCIS
Protecting the interests of the US Navy is a top priority for the NCIS. Contractors attempting to defraud the Navy and US taxpayers can expect our Agency to relentlessly pursue these allegations in partnership with the Department of Justice.
Todd Battaglia, Special Agent in Charge of the NCIS Europe and Africa Field Office
Charges and Agencies Involved
Defendant: Colas Djibouti Location: Djibouti, Djibouti Case Number: 21CR0280-WQH
Charges:
- Conspiracy to commit wire fraud (18 U.S.C. §§ 1349 and 1343)
- Maximum Penalty: Twice the pecuniary gain or pecuniary loss, whichever is greater.
Investigating Agencies:
- Defense Criminal Investigative Service
- Naval Criminal Investigative Service
- Defense Contract Audit Agency.