Egyptian construction company resolves USAID false claims charge with $1.1M settlement

A construction company based in Cairo, Egypt, has agreed to a $1.1 million settlement following allegations it violated the False Claims Act and the Foreign Assistance Act.

In the 1990s Misr Sons Development S.A.E. (also referred to as Hassan Allam Sons, or HAS) was part of a joint venture partnership with Washington Group International Inc. and Contrack International Inc. that was awarded U.S. Agency for International Development-funded contracts for the construction of water and wastewater infrastructure projects in the Arab Republic of Egypt. The United States filed suit alleging that HAS was ineligible to participate in the joint venture but its participation was concealed, allowing the partnership to receive contracts to which they were not entitled.

The United States previously settled with Washington Group International and Contrack, bringing the total resolution to over $10 million. The settlement has been a coordinated pursuit of the Civil Division's Commercial Litigation Branch, the U.S. Attorney's Office for the District of Idaho and the USAID Office of Inspector General.

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