See More

Boeing pays up to settle probe

Aug 14 2009 12:50

Related Articles

Boeing to axe 4 500 jobs

Boeing, anyone?

Boeing ordered to cough up $370m

US sues Boeing

Airbus, Boeing go head to head


Washington - Boeing agreed on Thursday to pay the US government $25m to settle claims the company did defective work on critical military refuelling planes in Iraq and Afghanistan.

The settlement arose out of a whistle-blower lawsuit filed in Texas by two former Boeing workers who will now receive $2.6m for drawing attention to the issue.

The Justice Department had investigated the Chicago-based aerospace giant for allegedly defective work on the Air Force fleet of KC-10 Extenders, which are used for in-flight refuelling in the Iraq and Afghanistan war theatres.

The work was done while performing maintenance on the planes at the Boeing Aerospace Support Centre in San Antonio, Texas.

The government investigation found Boeing overcharged the government for installing insulation blankets by padding the estimated hours of work and charging an excessive hourly rate for labour.

In announcing the settlement, Assistant Attorney General Tony West said companies that do work for the United States "must deal honestly with the government."

Even as it agreed to fork over millions of dollars, the company still insisted it did nothing wrong.

"Boeing disagreed with the (Justice Department) claims that our employees improperly installed the blankets and improperly billed the Air Force for our work," company spokesperson Forrest Gossett said in a statement. The statement did not explain why Boeing chose to settle the case when it believed it had not done improper work.

Under terms of the settlement, Boeing will pay $18.4m in cash and do $6.6m worth of repairs.

- AP



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

10 of the most ridiculous celebrity purchases, that cost millions!

From waterfalls to trips to space, find out what these celebrities were willing to spend a fortune on.


Luxury living

WATCH: Private luxury island for sale!
Karl Lagerfeld spotted with custom gold Apple Watch
The most luxurious dog house!
Must see: The world’s most expensive timepiece

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What brand of smartphone has been stolen from you?

Previous results · Suggest a vote