Published: April 27, 2008
MOSCOW — The United States Army has begun a broad review of procedures used to supply security forces in Afghanistan and Iraq with foreign arms, prompted by an allegation of fraud and questions about the competence of the main private supplier of ammunition to Afghanistan.
The company, AEY Inc. of Miami Beach, was suspended last month after Army investigators accused it of shipping aged Chinese rifle cartridges and claiming they were Hungarian.
The Army decided to review its contracting procedures as several arms-industry officials said that long before the suspension, it was clear the Army had erred by not recognizing risk factors in AEY’s history and activities, and by being lured by a very low bid.
Problems with the contract, they said, were evident again early this year when AEY’s president was seen shopping for foreign munitions, including shoulder-fired rockets, at an American gun show. The money he was offering, the officials said, was too little to buy quality ammunition.
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http://www.nytimes.com/2008/04/27/world/27ammo.html?pagewanted=2&ref=washington