USAF May Soon Lift Sanctions Against Boeing In Missile Scandal

Boeing's aerospace division, which has been collectively standing in the corner with its face to the wall after a scandal involving 25,000 documents stolen from arch-rival Lockheed-Martin, could soon be released from "time out."

The Wall Street Journal quotes USAF Lt. Gen. Brian Arnold as saying a decision to lift sanctions imposed against Boeing after a Pentagon investigation could come "very soon."

Boeing was slapped with those sanctions back in July, after the 25,000 documents turned up during an Air Force investigation into the 1998 contract for the EELV program. The scandal cost Boeing about $1 billion in launch contracts and, for a time, left Lockheed-Martin as the only launch contractor in the program.

Boeing's Dan Beck confirmed his company is talking with the Air Force about ending the launch sanctions, but didn't comment on when the penalties might actually be lifted. "We've worked closely with the Air Force ever since the suspension last year to provide them with everything they needed," Beck told the Seattle Times.

Under the reported agreement, Boeing would reimburse the Pentagon for the costs of the investigation, institute a new corporate ethics policy and continually update the Air Force on its progress in implementing that policy.

But while that will probably suffice for the Air Force, Boeing still has to face the music in terms of both civil and criminal penalties. Former Boeing executives William David Erskine -- the ground operations lead on Boeing's EELV program -- and Kenneth V. Branch, former senior engineer and scientist, were indicted by a Los Angeles federal grand jury. In addition, Boeing still faces fines that could amount to $250,000.

FMI: www.boeing.com