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NEWS | March 23, 2021

DoD Contractor Settles Civil Case for $3.9 million

By DCAA Staff Writer

COLAS SA Djibouti SARL reached a civil settlement to resolve allegations that it violated the False Claims Act by selling substandard concrete used to construct U. S. Navy airfields in the Republic of Djibouti.

In addition to the civil settlement, a separate Deferred Prosecution Agreement (DPA) with Colas Djibouti pursuant to which Colas Djibouti will admit to the underlying facts and accept responsibility to a one-count information conspiracy to commit wire fraud and pay a $12.5 million monetary penalty, comprised of fine, forfeiture, and restitution. The civil settlement will credit $1.9 million of Colas Djibouti’s payment under the DPA and require an additional $1.9 million. The civil settlement was the result of a coordinated effort among the Civil Division's Commercial Litigation Branch (Fraud Section), the U.S. Attorney’s Office for the Southern District of California, the Defense Criminal Investigative Services, the Naval Criminal Investigative Service, and DCAA.

Auditor Glen Hughes computed estimated civil damages of $2.2 million resulting from the use of the substandard concrete at various locations. The Department of Justice Attorney on the case stated, “As always, DCAA was instrumental and appreciated all of Glen’s work on this.”

Read the Department of Justice press release here.