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=> Houda Farouki and Ahmad Chalabi

Houda Farouki and Ahmad Chalabi
Posted by Tony (Guest) - Sunday, May 30 2004, 2:40:56 (CEST)
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WASHINGTON, May 25 (Reuters) - A previously canceled contract to equip Iraq's army was awarded on Tuesday to its original winner, Nour USA, a company with connections to Iraq's Governing Council.

The U.S. Army Tank-automotive and Armaments Command said in a statement it had awarded the $259 million contract for items from military vehicles and assault rifles to basic equipment such as backpacks to the Nour-managed ANHAM Joint Venture.

The amount was less than the $327 million deal canceled in March but the delay has seen U.S. commanders in the field dig into emergency funds to supply some of the equipment.

A U.S. review of the original bids found a huge spread in the price of competing proposals, an indication suppliers had not understood the contract in a uniform way.

Vienna, Virginia-based Nour had insisted it won the first deal on merit and not because of chairman Houda Farouki's close friendship with Iraqi Governing Council member Ahmad Chalabi.

"Nour and ANHAM Joint Venture are proud of our original and subsequent proposals to equip the Iraqi Army," Nour spokesman Robert Hoopes said in a statement on Tuesday.

Hoopes said ANHAM consisted of two U.S. companies and two Jordanian companies, which he did not name.

Cancellation of the original contract has delayed efforts to resupply the Iraqi army ahead of a scheduled handover of U.S. control to Iraqis on June 30.

Losing companies for the first Iraqi army deal said their bids were not properly assessed, that Nour had made an unrealistically low bid and that it did not have the experience to fulfill the contract.

Two losing companies in the original bidding process, Polish state-run arms maker Bumar and Jordanian-U.S. company Cemex Global Inc., filed protests with the General Accounting Office, the investigative arm of the U.S. Congress.

Nour's original win was met with an uproar in Poland, where local companies had hoped to be rewarded for their support for U.S. forces in Iraq.

Other protesting companies included Raytheon Technical Services Co., a subsidiary of Raytheon Co. , and General Dynamics Ordnance and Tactical Systems, Inc., a unit of General Dynamics Corp. .



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