Army suspends ammo company

Washington_The U.S. Army has suspended a Miami Beach company from doing any government contract work for reportedly providing Chinese-made ammunition to the Afghanistan army, in violation of its contract and U.S. law.

Documents obtained Thursday by The Associated Press say AEY, Inc., is under criminal investigation for reportedly claiming that the munitions were made in Hungary.

Pentagon spokesman Bryan Whitman says there are no reports that the ammunition was unsafe or failed to work properly. But he says some of it may not have been used because of concerns that it was not packaged well.

In a letter Tuesday, the Army told company owner Efraim Diveroli that the investigation could lead to AEY being barred from any U.S. government work.

Lolita C. Baldor, AP Writer © 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.