Navistar Accused of ‘Bilking’ $1.3 Billion from Govt.

Dec. 4, 2019

Navistar and its defense unit are accused of “bilking” nearly $1.3 billion from the U.S. government, according to a report in Crane’s Chicago Business. The report says the accusations are in connection with a contract for military vehicles used by American forces in Iraq and Afghanistan.

In June 2017, the U.S. Army awarded Navistar Defense $18.8 million to provide tactical vehicles to Iraq. According to the article, Navistar attempted to charge the U.S. government inflated prices for components of Mine-Resistant, Ambush-Protected (MRAP) vehicles.

The companies are accused of submitting misleading documents to the government including forged invoices and fabricated catalog prices for components, all to induce the U.S. to award the company a multi-billion-dollar contract. According to the report, top Navistar Defense officials were aware of the scheme.