A Kuwaiti shipping company that has done more than $1 billion in business with the U.S. military has also had ties to one of the men indicted in New York Monday for his alleged role in an international conspiracy to violate U.S. sanctions against Iran.
Members of Congress have for months been asking the Pentagon if the defense contractor Kuwait and Gulf Link Transport (KGL) may be secretly doing business with Iranian front companies, and those questions took on fresh urgency Monday with the 317-count indictment. Among those indicted by Manhattan District Attorney Cy Vance was Moghaddami Fard, an Iranian man whose name appears on dozens of emails with top KGL executives, and who sat on the five-member board of directors of a company that was partially owned by KGL.
"I am deeply concerned by information that suggests the U.S. Army and Defense Logistics Agency may be contracting sensitive military logistics services to an entity tied to Iran's primary shipping company," Sen. Mark Kirk (R-Ill.) told ABC News Monday.
"We must come down hard on this company so others realize they will pay a price for doing business with Iran," said Sen. Claire McCaskill (D-Mo.). "Our sanctions must have sharp teeth."
KGL has received numerous lucrative logistics contracts, including one in February reported to be worth $157 million. The U.S. government contracts have continued to flow to KGL despite a series of letters signed by members of Congress and shared with ABC News that have questioned KGL's alleged ties to the Iranian state-owned shipping giant, IRISL.
Top Pentagon officials told Congress they could find no ties between KGL and any banned Iranian firms. But on Monday, Kirk called on the Defense Department to launch an immediate investigation to determine whether the company is in fact tied to IRISL and, if it is, to "take all necessary steps to ensure U.S. military facilities and supply lines have not been compromised."
Some of the evidence that purports to link KGL to Fard can be found in dozens of internal company emails that were leaked to members of Congress earlier this year. The chairman of KGL Holding Company, Dr. Ali Dashti, told ABC News he believes the emails have been doctored to make it appear that Fard was conspiring with KGL to hide the company's Iranian connections.
"KGL has been the victim of a campaign to spread false and altered documents attempting to show an improper relationship between KGL and sanctioned parties," Dashti said in a statement emailed to ABC News. "Any document indicating that Mr. Fard is or has been a representative of KGL is false. Mr. Fard represented [Combined Shipping] on the board of [a company partially owned by KGL] and has never represented KGL."
Lawyers for KGL have told members of Congress that the company recently reorganized and, as of this month, had shed all of its ties to Iranian shipping, including its joint ownership of a company called Combined Shipping Company -- where Fard served as an executive. The company that KGL partnered with in ownership of Combined Shipping has been placed on the U.S. list of banned firms. Dashti said in his statement that the companies are no longer affiliated.
"KGL severed its relationship with the Combined Shipping Company," he said. "KGL divested its pre-existing 51 percent ownership in [Combined Shipping] as a direct result of the other 49 percent owner being placed on the U.S. sanctions list."