Thu, Apr 08, 2004
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
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