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State Dept. reviews ties with firm criticized for Iraq embassy flaws
By Warren P. Strobel | McClatchy Newspapers
* Posted on Friday, October 26, 2007
WASHINGTON — The State Department is reviewing its relationship with the Kuwaiti company building the trouble-plagued new U.S. Embassy in Iraq, senior U.S. officials said Friday.
The officials said the review is looking at three other subcontracts given to First Kuwaiti General Trading & Contracting Co. to build embassies and consulates in Saudi Arabia, Indonesia and the African country of Gabon.
The company's future role in the lucrative embassy construction business, they said, depends on how quickly it resolves the problems in Baghdad, where the massive $740 million embassy complex is behind schedule due to a series of fire safety, electrical and other flaws.
The officials spoke on condition of anonymity because no decisions have been made in the matter.
Secretary of State Condoleezza Rice revealed the review near the end of almost three hours of testimony before the House Oversight and Government Reform committee Thursday.
"I have asked that we review all of our contract possibilities with First Kuwait(i), and that review is under way," Rice said.
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