[Congressional Record Volume 142, Number 141 (Thursday, October 3, 1996)]
[Extensions of Remarks]
[Pages E1917-E1918]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       BEWARE AMERICAN CONTRACTOR! KUWAIT DOES NOT PAY ITS BILLS

                                 ______
                                 

                         HON. RONALD D. COLEMAN

                                of texas

                    in the house of representatives

                       Thursday, October 3, 1996

  Mr. COLEMAN. Mr. Speaker, Saddam Hussein is beating the war drums 
again and the United States is marching to Kuwait to once again save 
the Kuwaitis from aggression. Fighting for democracy is an American 
tradition that we want to keep but there is something going on that the 
Congress and the American people need to know.
  When Johnny came marching home from Kuwait after the gulf war his 
pockets were empty--some say Johnny's pockets had been picked by 
Kuwaiti business practices.
  Take the example of a small business based in Maryland, Integrated 
Logistics Support Systems International, Inc. [ILS], that helped the 
Kuwait security by building a sophisticated air support warehouse at Al 
Jabar Air Base near the Iraqi border. The Al Jabar Base is now used by 
the U.S.-supported military operations as the first line of defense 
against Saddam's aggression.

[[Page E1918]]

  During the Iraqi invasion of Kuwait and operation Desert Storm, ILS 
was one of the first American companies called upon to provide vital 
strategic services to Kuwait in order to protect America's national 
security interests. ILS immediately responded at the request of the 
U.S. Navy with tactical support facilities. Operation Dessert Storm 
desperately needed the mobile operations vans provided by ILS in order 
to operate from an austere base in the Saudi Arabian Desert.
  ILS directed activities which permitted the shipment of maintenance 
material, aircraft spare parts, ordnance and other supplies from the 
U.S. to Saudi Arabia, enabling the KAF to achieve a reconstituted 
wartime status. Humanitarian assistance to Kuwaiti citizens in the 
United States and other nations outside their homeland, was provided by 
ILS. Special equipment was obtained for the Kuwait resistance movement 
during Desert Storm/Desert Shield as well.
  After the war, the KAF, with the approval of the USN, requested ILS 
to design a state-of-the-art automated supply system and to adapt the 
new system to the facilities in Kuwait. ILS did so.
  The climate conditions in Kuwait were extreme. ILS responded to the 
challenge because logistic supply support facilities were critical to 
the operation of the KAF F-18 Hornet aircraft based at Al Jabar Air 
Base.
  Capt. Nick Kobylk, U.S. Navy, retired, was the former director of 
operations for the U.S. Navy International Programs Office [Navy IPO] 
with oversight of more than 5,400 foreign military sales [FMS] 
contracts for the U.S. Navy prior to his retirement in September 1992. 
Captain Kobylk who is currently working and living in Kuwait, visited 
the building site at Al Jabar Air Base while it was being built. He 
observed the following:

       The warehouse location is over an hour drive through the 
     desert and oil fields from the nearest hotel. It was built 
     with temperatures in excess of 50 degrees Celsius (122 
     degrees Fahrenheit). The work was exhausting and became more 
     dangerous as the day progressed. Food, water and ice were 
     brought daily to the sites by ILS. The base had no security. 
     Unexploded ordnance was discovered around the work area. One 
     man was killed and another wounded for life. The closest full 
     medical facility was over an hour away. There was 
     intermittent and unreliable electrical and water service. The 
     only consistent and reliable means of communication was via a 
     mobile telephone system.
       These harsh conditions still exist. However, electrical 
     power, potable water, dining and medical facilities are now 
     locally available. The population has increased. ILS and U.S. 
     Corps of Engineer personnel support and operate a major air 
     base in the desert. The warehouse supply support system 
     implemented 3 years ago met the demands of October 1994. The 
     F/A-18's were prepared and ready to defend Kuwait as Saddam 
     Hussein began massing on the border again. The ILS warehouse 
     system meets the current demands of September 1996, even with 
     the influx of the USAF highly sophisticated weapon systems 
     and their unanticipated requirements. The KAF has realized 
     one of the finest warehousing systems in the world. It is 
     essential to their national security. They are more than 
     pleased with it.

  ILS received high praise from the Kuwaitis for the quality of its 
professionalism and performance.
  Kuwait's size, topography, and population do not permit it to 
unilaterally conduct a meaningful defense of its borders. Kuwait must 
rely on allies and air defense. The work of ILS literally provided the 
linchpin of Kuwait's national security by providing the most 
sophisticated logistical support/supply facility of its kind in that 
region of the world.
  Today, as tensions once again escalate, we should notice that this 
small American company is to be credited for providing the foundation 
for the success of the security of the region.
  However, Kuwait has not paid its obligations to this company. The 
U.S. Navy has not assisted this American contractor to obtain payment 
from Kuwait either.
  The contractor has been told that Kuwait will pay its debt if the 
Navy authorizes it. The Navy has told this contractor the reverse. I 
consider this to be the run-around.
  Why won't Kuwait pay ILS for the work that has been performed or 
direct the Navy pay the ILS? It is because Kuwait has been 
systematically defaulting on its debts after the gulf war. It is the 
way this country does business with American companies.
  Congress should initiate a full investigation of these business 
practices that leave U.S. contractors holding the bag for work that was 
successfully performed, especially such critical work as this.
  Congress should also assist these contractors to unwind the ball of 
redtape that binds the United States Navy which administers contracts 
for Kuwait and other foreign allies.
  Congress should not allow Johnny to come marching home after the gulf 
war with his pockets picked by Kuwait.

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