APL to pay $9.8m to resolve alleged violation of False Claims Act

The container arm of Singapore’s Neptune Orient Lines (NOL) was said to have violated the act in connection with a defense shipping contract to provide GPS tracking of containers in Afghanistan.

The contract had required APL to affix satellite tracking device to each shipping container transported from Karachi, Pakistan to US military bases in Afghanistan, as requested by the Department of Defense.

The US government, however, alleged that APL billed the defense department for tracking services despite knowing that the tracking devices completely or partially failed to transmit data, or were not affixed to the shipping containers.

The government also claimed that APL attached a single satellite tracking device to two shipping containers despte being required to affix one device to every container.

The claims resolved via civil settlements are allegations only, and there has been no determination of liability, the Justice Department pointed out.

“Today’s settlement demonstrates our commitment to ensure that contractors doing business with the military perform their contracts honestly,” said Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that there are appropriate consequences for those who knowingly fail to live up to their bargain and misuse taxpayer funds.”