Supreme Foodservice and related entities, which had the multi-million dollar contracts to supply Australia and other International Security Assistance Force nations in Afghanistan from the mid 2000s until 2013, has admitted to the fraud in relation to dealings it had with the United States military.

The admission has raised concerns that Australia may have faced similar drastic price hikes for food and water and other goods purchased from Supreme, which had a series of contracts to supply Australian troops in Australia.

The long-running fraud, which resulted in Supreme and related entities having to pay US authorities some $US96 million ($135 million) in fines, $US48 million in restitution and $US10 million in criminal forfeiture, operated by using a "middleman" company it set up in the United Arab Emirates.

The middleman company called Jamal Ahli Foods Co was then used to mark up prices for fresh fruit and vegetables and other locally produced foods sold to the US, according to a statement from the Federal Bureau of Investigation.

The scheme, which the FBI says ran from 2005 to 2009, was also used to obscure the inflated price that Supreme was charging the US for water.

Supreme's clients were not aware that Supreme controlled Jamal Ahli Foods Co while it was acting as a so-called independent company lifting the prices of goods purchased in Dubai, says the FBI.

The company has denied other clients were impacted by the fraud.

But this week Fairfax tracked down Australian national and former general manager of Jamal Ahli Foods Co, Keith Martine who called on Australian Defence authorities to conduct a full audit of all their dealings with Supreme and its related companies.

Mr Martine said he feared that Australia may have been "ripped off" in their dealings with many suppliers contracted to service troops in Afghanistan.

"Don't forget Australia was fed by the Americans. Where we had ground troops, we would almost certainly have been supported by the US DOD (Department of Defence)," he said.

Mr Martine, who worked first for Supreme but then moved to manage Jamal Ahli Foods in Sharjah in the UAE in 2007, said he had raised concerns with company officials about the potential conflict years before the fraud was uncovered.

"I was told they knew about it and it was being sorted out," he said.

"It was a double profit. It didn't start until about 2005 when they started buying fruit and vegetables through Jamal Ahli Foods. It was just a logistic centre at first."

Mr Martine who left Supreme around 2010 said he understood he had been flagged to give evidence to the US investigators in connection with the fraud.

But he said before he travelled to the US to give evidence but Supreme settled the matter and agreed to pay the fines.

Supreme Group's head of marketing Ana Seixas​ on Friday said Supreme group "refutes those allegations".

She said however she would need more time to gather specific details as the contracts were finished some time ago and the weekend was about to start in Dubai.

Australian troops first deployed to Uruzgan province in Afghanistan in large numbers in 2006 and 2007 and relied mainly on the Dutch military to supply food on the shared base. Fairfax understands the Dutch had some contracts with Supreme for food supply.

From 2007 to 2009 Australia also began to enter into a series of "limited tenders" for food and beverages with Supreme related companies worth about $130,000 according to the Australian Government Tenders website.

When the Dutch pulled out of Uruzgan in 2010, Australia took over more responsibility for the base and entered into larger contracts with Supreme-related companies.

Asked to provide details of contracts with Supreme, the Australian Defence Department said it would not be able to respond in detail until next week as the relevant files had to be located.

However, as an interim response, Defence on Saturday confirmed it had established a "direct contract with Supreme Foodservice GmbH (Supreme) for the provision of catering and messing services for forces at Camp Holland in Tarin Kowt, in Uruzgan

The contract ran from December 2009 until December 2013 and involved regular compliance audits to manage the risk to the Commonwealth and in accordance with procurement guidelines, a Defence spokesperson said.

The Australian Government Tenders website lists Defence as having a series of open tenders with Supreme-related companies for domestic kitchenware between 2010 and 2013 worth some $130 million.