Post by corsair67 on Jul 4, 2006 10:09:34 GMT 12
Boeing obviously wants to finally eject the skeletons from the closet! 
From The Australian.
Boeing to pay $828m to settle procurement scandals
Doug Cameron, Chicago
July 03, 2006.
BOEING said it had reached a final agreement with the US Department of Justice following two procurement scandals which led to the ousting of one chief executive and a prison term for its former chief financial officer.
The aerospace and defence group will pay $US615 million ($828.4 billion) to avoid civil and criminal charges following the three-year DoJ probe, in line with the cost of the tentative deal outlined in May.
Boeing announced late last week that it would take a $US615 million charge to cover the issue, as well as up to $US500 million for a delayed military contract.
The settlement followed the government probe into Boeing's misuse of a rival's proprietary information to win a rocket contract, and the controversial hiring of a former Department of Defence official, Darleen Druyan, who helped the company secure a multi-billion-dollar refueling tanker deal which was later cancelled.
Ms Druyan and Mike Sears, Boeing's former CFO, were both jailed for their role but have since been released.
The $US565 million civil penalty and $US50 million criminal settlement are the largest-ever imposed for a government procurement fraud, said the DoJ.
Boeing avoided criminal charges by agreeing to co-operate with ongoing inquiries into the the tanker deal, which has been put back out for tender.
The agreement places Boeing on probation for two years, allowing it to avoid criminal charges and to rebuild a troubled relationship with the US DoD, its largest customer, which included a series of cost over-runs in addition to the procurement scandals.
Boeing has regained its customer status with the DoD, and is one of three bidders for the air-tanker contract.
"It wasn't a proud time in their history and in some ways it wasn't a proud time in our history," said Ron Sega, under-secretary for the air force.
James McNerney, who took over as the company's third CEO in as many years last July, has made sweeping internal reforms to address the ethical and operational issues which have dogged the group in recent years, overshadowing the improving fortunes of its commercial aircraft business.
"The lapses were not part of a systemic problem, but there were definite weaknesses in our structure and in our culture," Mr McNerney told a corporate ethics conference in April.
He also announced plans in January to restructure the defence business, cutting the number of units from seven to three to match changes in US procurement policy.
From The Australian.
Boeing to pay $828m to settle procurement scandals
Doug Cameron, Chicago
July 03, 2006.
BOEING said it had reached a final agreement with the US Department of Justice following two procurement scandals which led to the ousting of one chief executive and a prison term for its former chief financial officer.
The aerospace and defence group will pay $US615 million ($828.4 billion) to avoid civil and criminal charges following the three-year DoJ probe, in line with the cost of the tentative deal outlined in May.
Boeing announced late last week that it would take a $US615 million charge to cover the issue, as well as up to $US500 million for a delayed military contract.
The settlement followed the government probe into Boeing's misuse of a rival's proprietary information to win a rocket contract, and the controversial hiring of a former Department of Defence official, Darleen Druyan, who helped the company secure a multi-billion-dollar refueling tanker deal which was later cancelled.
Ms Druyan and Mike Sears, Boeing's former CFO, were both jailed for their role but have since been released.
The $US565 million civil penalty and $US50 million criminal settlement are the largest-ever imposed for a government procurement fraud, said the DoJ.
Boeing avoided criminal charges by agreeing to co-operate with ongoing inquiries into the the tanker deal, which has been put back out for tender.
The agreement places Boeing on probation for two years, allowing it to avoid criminal charges and to rebuild a troubled relationship with the US DoD, its largest customer, which included a series of cost over-runs in addition to the procurement scandals.
Boeing has regained its customer status with the DoD, and is one of three bidders for the air-tanker contract.
"It wasn't a proud time in their history and in some ways it wasn't a proud time in our history," said Ron Sega, under-secretary for the air force.
James McNerney, who took over as the company's third CEO in as many years last July, has made sweeping internal reforms to address the ethical and operational issues which have dogged the group in recent years, overshadowing the improving fortunes of its commercial aircraft business.
"The lapses were not part of a systemic problem, but there were definite weaknesses in our structure and in our culture," Mr McNerney told a corporate ethics conference in April.
He also announced plans in January to restructure the defence business, cutting the number of units from seven to three to match changes in US procurement policy.
