Contract dispute leaves 100 Americans stranded on US Army bases

Someone sent me the link to this on my Facebook site this morning.  It is the first I've heard of it.  Some companies are REALLY lowering the bar on unethical behavior.  OMG.  I hope that folks in the US are equally as "hospitable" should the company owners ever venture to the US....

Captive in Kuwait: Contract dispute leaves 100 Americans stranded on US Army bases

By Cristina Corbin

Published June 18, 2013

FoxNews.com

At least 100 American citizens have been trapped for months on two U.S. bases inside Kuwait after local police unjustly issued warrants for their arrest, a U.S. defense contractor told FoxNews.com.

Most of the Americans were working as Arabic translators for Global Linguist Solutions, which ended a lucrative deal with its sponsoring Kuwaiti subcontractor, Al Shora International General Trading & Contracting and signed on with another company. Sources told FoxNews.com Al Shora's managing director is the sister-in-law of the Kuwaiti prime minister.

When the contract ended Feb. 17, Al Shora refused to transfer the employees' visas to the new Kuwaiti subcontractor and falsely accused the Americans of being "runaways and absconders," according to Charles Tolleson, president of Global Linguist Solutions. His company has barred workers from leaving the bases since May 31 to protect them from arrest and imprisonment. 

"We don’t see any hope. We’re dealing with a corrupt company in Kuwait that has fabricated charges against us."  - American citizen trapped on U.S. base in Kuwait.  "My biggest concern is the safety and security of my employees in Kuwait," he said. 

One of the employees, who contacted FoxNews.com Tuesday morning from Camp Buehring, said, "If we leave the base, we could be arrested by the Kuwaiti authorities, jailed or deported."

"We cannot see the doctor even for an emergency," said the woman, who asked that her name not be used. "Everybody here is under stress because a lot of us here need to go home. Our families are worried about us. We need to see our kids... We don’t see any hope. We’re dealing with a corrupt company in Kuwait that has fabricated charges against us."

She said the Al Shora's managing director "cancelled all of our visas here, so we became illegal."

Camp Buehring is in the Kuwaiti desert, about 25 miles south of the Iraqi border. Other employees of Global Linguistics are similarly stuck at Camp Arifjan, another U.S. Army base inside Kuwait.

Al Shora is demanding $22 million from Global Linguistics in order to transfer the employees' visas to the new company, Kuwaiti Resources House, sources said. Under Kuwaiti law, foreigners cannot work in the country unless they are under the sponsorship of a private Kuwaiti company. 

After his company re-bid its contract several months ago and opted to chose the new Kuwaiti company, "Al Shora basically embarked on a campaign to destroy my company," Tolleson said.

"There’s no contract dispute. I don’t even have a contract with them anymore," he said of Al Shora. "If a sponsor is no longer a sponsor, they are required to simply transfer [the visas] to the new sponsor. This happens all the time. They won’t do that, and that violates the terms of their former contract."

A representative from the Kuwaiti prime minister's office said he was not aware of the situation.  "This is the first time I heard about this," the representative, who declined to give his name, told FoxNews.com. "This kind of behavior has never happened."

He had no comment when asked if the Al Shora's managing director was related to Kuwaiti Prime Minister Jaber Al-Mubarak Al-Hamad Al-Sabah

Tolleson said that when he approached the U.S. military about the situation, "I was told this is my problem."

The office for the U.S. Ambassador to Kuwait referred all inquiries on the matter to the U.S. State Department.

“The U.S. Embassy in Kuwait is aware of the commercial dispute involving a Department of Defense contractor and a local Kuwaiti company," Beth Gosselin, as a State Department spokeswoman, told FoxNews.com. "That dispute has had an impact on a number of private U.S. citizens working in Kuwait. 

"The protection of U.S. citizens overseas is one of our highest priorities," Gosselin added. "The U.S. Embassy is working with the private U.S. citizens and is providing them with appropriate consular assistance. The Embassy continues to monitor the situation closely and is encouraging an immediate resolution to this difficult issue."

At least three of the linguists reportedly spent seven days in a crowded, filthy jail after being caught outside their base. Majdi Abdulghani was detained by police May 9, as he prepared to board a plane on an approved trip to Jordan to visit his sick mother, the military newspaper Stars and Stripes reported.  He spent seven days in jail before being flown back to the U.S., according to the newspaper.  

Read more: http://www.foxnews.com/world/2013/06/18/captive-in-kuwait-contract-dispute-leaves-100-americans-stranded-on-us-army/#ixzz2WkDytCmP

Update on: Western Employees on Arifjan Sue for Labor Benefits and Win

Original post HERE.  See AmericanGirlsWorld Blog post on this subject HERE. 

The below is outstanding information from American Girl's World blog.  I hope some of my readers will find it useful as well, as I am often asked these types of questions.

Keven L. Barnes says:

April 29, 2013 at 12:49 pm

I work closely with Dr. Al Enezi’s law firm and he is working a number of these cases against Primes who, with the blessing of Camp Arifjan Contracting Officers and Lawyers have allowed the False Claims Act violations to go unaddressed in the form of debarments and suspension of companies who are violating the United States Government Prime contract DFAR regulation 252.7002 LOCAL LABOR LAWS apply.

What applies to Rock Island and Camp Arifjan are RICCO Racketeering laws against conspiracies, fraud, and theft of workers on such a scale as been happening to Americans, British, Australian, and other Western Expats, let alone the Third-Country nationals.

When you have the Department of Justice not investigating racketeering, fraud, the violation of the Competition in Contracting Act, and now Labor violations that date back 8 years – we have ourselves a racketeering that involves the DoD IG and FBI. Who is going to investigate and report to our Congress members the ongoing violations of the Terms and Conditions of the Prime contracts not enforced by Contracting Officers who were given an SF1402 and only have an 8th grade education. I would fully expect that the Lawyers who I believe have a much higher education degree than any Army Contracting officer would realize the difference between defending criminals and upholding the Federal Acquisition Regulations and Kuwait Labor Laws. They apparently have blurred the lines between defense and law. The Kuwait Labor Law applies to all VISA 18 in the passport holders. Visa 14 cannot work – PERIOD and Camp Arifjan has 100 plus violations of that statute alone at any one time.

Call Dr. Al Enezi or write me and I we will discuss your prime contract and its terms about Local Labor Law. All those who had their local labor rights in Kuwait violated should see a Qui Tam lawyer and bring the appropriate lawsuits against these Prime Contractors and file a claim against the Army and the individual contracting officer until finally – there just are no Contracting Officers who violate the Kuwait Labor Laws. Haul them into Kuwait courts. They leave the base, so they can be served papers to appear. ONLY then and investigation into the racketeering of Camp Arifjan and why it appears year after year in the Department of Justice’s report to Congress dating back to 2005 and MAJ JOHN COCKERHAM, MAJ PRESSLEY, and the other Camp Arifjan criminal elements who have joined the long list of 28 kickback artists. http://www.usmilitarycontracting.org will be a portal to capture this other criminal activity of Camp Arifjan.

Good Luck with your cases and don’t forget to take the win to an American attorney to recover damages in the United States system.

keven.barnes@latvianconnectionllc.com

Western Employees on Arifjan Sue for Labor Benefits and Win

The article below appeared on the front page of the Arab Times.

USG contractors working in Kuwait MUST abide by the Kuwait Labor Law or face consequences.  Just because employees are working at a US military installation does not mean that employers get to bend the rules to suit them.  

It is good that the article includes the full name of the lawyer, Musaed J. Al-Riyahi,  that is handling the employees' case.  He has successfully won cases for Westerners fighting for their rights.  More people with similar circumstances can now contact him.  Only wish they had published his contact information!  I just did a quick Google search and couldn't find him.  Why don't these guys at least get on LinkedIn?

The Kuwait Labor Law states that a work week is only 48 hours.  Any time over 48 hours is considered overtime.  No such thang in Kuwait as "exempt" and "non-exempt" employees.  It all the same.

Kuwait Labor Law, Article 64
"…it is forbidden to allow workers to work for more than 48 hours per week or 8 hours a day..."

Article 66

The overtime work should not exceed two hours a day, a maximum of 180 hours a year, three days a week or 90 days a year. The worker shall have the right to prove by any means that the employer required him to perform additional works for an additional period of time. The worker shall also be entitled to a 25 percent increase over his original remuneration for the period of overtime."

I wonder how many employees filed the case.  Interesting.

Bottom line is that either the company has knowingly violated legal labor practices to make more money;  or whoever was in charge of overseeing their contract (compliance/contract management?) did a crap job.

Ultimately, if employees don't do anything about it, unscrupulous companies will get away with it.  The Kuwait Labor Law is available online.  Any employee in Kuwait with a Kuwaiti residency visa is governed under the Kuwait Labor Law.  Get edumacated.

Little Diddy on the FAR and Kuwait Labor Law: Overtime Charging

A little note on contracting.  I thought I would throw it out there for companies who have proposed and won contracts - and must abide by both the FAR and Kuwait Labor Law. 

Note that the stipulation of a work week in Kuwait is 48 hours in Kuwait.  Anything over 48 hours is subject to overtime.  The Kuwait Labor Law is very specific about how many hours of overtime an employee can work - and the reporting procedures that an employer must follow.  Employees can not be forced to work overtime and they must be compensated.

Many seemingly innocent USG contractors working in Kuwait should be aware of this....  Many contractors have also written yearly salary increases (or COLA)  into their contracts and perhapsee the employees aren't receiving them.  Wouldn't that be fraud?  Gee, I would think so if it was written into a contract and then the employees didn't receive it; instead the difference was being pocketed.... hmmmmm

I am guessing this is how several large defense contractors assumed they could get away with being the lowest bidder.

Now, if I were on a task force or audit team, I would first randomly (and without prior notification) ask contractor's employees how many hours they work and if they receive annual increases (perhaps saying something like lying is against the law... yada.)   Then, I would ask to see a company's overtime and time & attendance logs. A random sampling should give you an indication of if the company is on the up and up or not.

Here we go, kids....

"FAR

Subpart 22.1—Basic Labor Policies

22.103  Overtime.

22.103-1  Definition.

“Normal workweek,” as used in this subpart, means, generally, a workweek of 40 hours. Outside the United States and its outlying areas, a workweek longer than 40 hours is considered normal if—

(1) The workweek does not exceed the norm for the area, as determined by local custom, tradition, or law; and

(2) The hours worked in excess of 40 in the workweek are not compensated at a premium rate of pay. "

"Kuwait Labor Law

Section  Two

Working hours and weekends

Article (64}

Without prejudice  to the provisions of Article (21) of this Law, it is forbidden to allow workers to work for more than 48 hours per week or 8 hours a day, except in such events as are specified in this Law. Working hours during the month of Ramadan shall be equal to 36 hours per week.

Article (65}

a-            Workers shall not be required to work for more than five consecutive hours a day without a break of a minimum of one hour that is not included in the working hours.

The Financial, commercial and investment sectors shall be excluded from this provision  and the working hours  shall be equal to eight  consecutive hours.

Article (66}

Without  prejudice  to Articles  (21) and (64)  of this Law, the employer  may,  by means of a written order, have workers work overtime if the necessity arises for the purpose of preventing a dangerous accident, repairing damages arising from such accident, avoiding a loss or facing an unusual work load. The overtime work should not exceed two hours a day, a maximum of 180 hours a year, three days a week or 90 days a year. The worker shall have the right to prove by any means that the employer required him to perform additional works for an additional period of time. The worker shall also be entitled to a 25 percent increase over his original remuneration for the period of overtime.

This  remuneration  shall  be  in  conformity  with  Article  (56)  of  this Law.  The employer  shall  keep  a  special  record  for  overtime  work  showing  the  dates, number of hours worked and remunerations paid in consideration of the additional work assigned to the worker."

USG Contracting Fraud Task Force in Kuwait

Looky looky at what I found. (Baby, where were you 8 years ago when I needed you the most?)  These fliers are being distributed at Arifjan.  Do YOU have a dirty little contracting secret you would like to share... ;)

Unfortunately, they don't have a local number but it is great to know that these folks are out there, The Defenders of Evil.

Kamal Sultan had to go all the way to US Federal Court in Atlanta before anyone would take notice of practices at (that big warehousing company to the North which is currently disbarred).. maybe the fliers will do more to help on the ground in Kuwait.  What are your thoughts?

15 November:  Someone just sent me this one below.



US Contractors and Kuwait Residency Discussion

I commented on American Girl's blog post in reference to US Contractors in Kuwait and thought I would post my comment here as well.

I have a friend who works for a US company, "supposedly" with no Kuwait "presence".  He is only getting 2 weeks vacation per year - which is illegal as per Kuwait Labor Law -- but so is a 60 hour work week - will he get OT?  I mean, he "agreed" to it while in the US - why be a prima donna, right?  But wait... dude also has a Kuwait residency visa.  Uh oh!  That means that the company does indeed have a "presence" in Kuwait.  They have chosen to "partner" with a Kuwaiti company to provide sponsorship to their employees.  They have a legal partnership agreement and the employer's US employees reside in Kuwait in the local economy.

Get a copy of the Kuwait Residency Law.  Read it.

Anyone who has a Kuwaiti residency is bound by Kuwait law.  You reside in the country; you obey the laws of the country.  (On the flip side, it would be like sending Kuwaitis to the US and expecting them to abide by Kuwaiti and not US HR laws.  How long would that last?  Oh, but wait... the US enforces laws....)  The USG pays the bills to US contractors, but they have lots of contractors all over the world from different countries - and those contractors must abide by local laws.  There are lots of USG contractors in Kuwait - Kuwaiti companies working in the Kuwaiti economy.   ALL  employees under a Kuwaiti residency visa (RESIDE in Kuwait) are subject to Kuwait Labor Law.

If you move to another STATE in the US, you have to learn the State law.  Why is it that people move to a foreign country and don't know their rights - or challenge them?  Je ne get it pas.

Your offer letter from  your company IS your employment contract in Kuwait.  Anyone who has a Kuwait residency must have it through a Kuwaiti sponsor.  RETAIN COPIES all paperwork in Arabic that you sign (don't sign if they don't give you a copy).  (Would you sign anything else - anywhere else - if you didn't know what it was or know what it states?)   There is a paper in Arabic ("ethayn al amel" - work permit) that you will be asked to sign to obtain your residency that goes to the Ministry of Labor that lists all the information for your contract:  Job description, duration of contract, salary, sponsor, etc.  If you end up suing as an employee, it will be your evidence.  SAVE IT.  Save all paperwork your employer gives you relevant to your contract and pay.

Employing contract companies (defense contractors)  may be confused (or chose to be confused).

This is only an example and not true to my knowledge:  ASC and their employees were sponsored by Kuwaiti company,  HRK.  If ASC chose not to give an employee their entitlement of 30 days vacation, the employee could sue; but sue who?  Not ASC.  The employee would sue the party sponsoring them; HRK.  HRK would have to square it with ASC.

Kuwaiti Labor Law supersedes any other agreements you have signed and will choose whichever stipulation is the most advantageous TO THE EMPLOYEE.  ANY employee can file a complaint (through a lawyer or by themselves) at the Ministry of Social Affairs and Labor (in the area where the company/sponsor has a physical address).  (The Ministry of Social Affairs and Labor - also known as "Shaoun" - can also be a useful place to receive advice if you don't want to go to a lawyer, but be ready for a little confusion and running around.)   The company may receive a fine and may be punished by having their "file closed"; meaning that they are not able to obtain any additional visas for employees.

What an employer relates to employees (and HR managers) may be their interpretation of the law (and/or how they may "adjust" it) but if you do go to a lawyer, you will find that employers/employees are bound to the Kuwait Labor Law.  (You can also file a complaint with the US military.)  (No slight to HR managers, but) HR managers are paid employees of your employer and are often advised by their employers and their legal team.  They're not independent parties.  Lawyers are.

Please don't take my word for it.  God know's - I'm blonde and I'm not an attorney or HR professional.  Ask a lawyer - talk is cheap in Kuwait. :)  Most often, the lawyer will not ask you to pay for a consultation.  Chose a lawyer who is affiliated with a US firm and knows Kuwait Labor Law.  American Girl is correct that there are many listed on the US Embassy's website.

Now, an employee may have to sue in Kuwait, via a Kuwaiti lawyer, to obtain/challenge the rights, but they'll eventually get the entitlements.  If you don't want to stick around to see the case through, you can opt to sign a power of attorney with your lawyer and have your entitlement forwarded to you later (in another country).

Often, employees who "rock the boat" (also known as "challenge their employers on their legal rights") are conveniently whisked away via an airline ticket home.  You may not know the real deal of what happened to your colleague(s).  Do an online search of court cases against your potential new employer (and their sponsor).  Is there a pattern of similar behavior on the part of your employer?  Are they just "getting away with it" at employee expense?

And, for the love of God - find OUT who your sponsor is!   They are effectively your middle-man.   Who owns the company?  Are they ethical?  Are they providing the proper representation and/or advice to the company you work for in Kuwait?  How long does it take to get your residency visa?  30-90 days MAX.  Just because a sponsor is a "big company" doesn't mean that they're good.  It could just mean that they made their money being bad.

Articles on Corruption in Military Contracting

'Problems' found; Team probes Army contracts in Kuwait (Oct 28)
http://www.arabtimesonline.com/client/pagesdetails.asp?nid=7202&ccid=11

Army to examine Iraq contracts for fraud (Oct 27)
Probe focuses on Army office in Kuwait that gave $2.8 billion in contracts
http://www.msnbc.msn.com/id/21495626/

Marking Up The Reconstruction (Sandi Group & Dyncorp) (Oct 26)
http://www.theroughcut.net/Articles/article11_recent.html

OOOOPS!

US Rejected Civil Case (PWC/Agility story from the WSJ, Europe - page 10), October 23, 2007

Inside the Greed Zone (PWC/Agility Story from the Wall Street Journal).

Houston man is key figure in probe of food contracts (PWC/Agility Story from the Wall Street Journal)

The author of these stories is Glenn Simpson of the Wall Street Journal. He and his investigative team are running a series of similar stories and welcome feedback and additional research info. Email is glenn.simpson@wsj.com.