Watchdog Applauds Sen. McCain for Battling Boeing Bailout | Citizens Against Government Waste

Watchdog Applauds Sen. McCain for Battling Boeing Bailout

Press Release

For Immediate ReleaseContact: Mark Carpenter
July 17, 2003(202) 467-5300

 

(Washington, D.C.) – Citizens Against Government Waste (CAGW), today praised Sen. John McCain (R-Ariz.) for his leadership in questioning a proposed lease deal between Boeing and the Pentagon that could cost taxpayers $21 billion.  The deal calls for the Air Force to lease 100 Boeing 767 aerial fuel tankers over the course of ten years.  Despite cheaper alternatives and Boeing’s history of corporate espionage, the deal has many supporters in Congress.

“It is unfathomable to think that any company that has admitted to receiving stolen documents from its competitors in order to win a federal contract would not be punished by the government, let alone continue to receive lucrative deals,” CAGW President Tom Schatz said.  “Moreover, members of Congress who support this unprecedented corporate welfare deal should be ashamed for ignoring what is in the best interests of taxpayers.   We congratulate Sen. McCain for his continued efforts on this issue.”

Boeing’s current woes are the result of allegations that the company stole documents from a rival to win a multi-billion dollar rocket contract.  Boeing has conceded that the illegalities occurred. The company ran a national advertising campaign claiming, in their defense, that it was done by only a handful of employees who currently no longer work for the company.  The Procurement Integrity Act, passed to protect companies from corporate espionage, prohibits any possession of a rival’s proprietary documents.  After violating the act, Boeing has returned more than 37,000 pages of proprietary information taken from a prime competitor, Lockheed Martin.

“It is clear that Boeing cannot be trusted,” Schatz continued.  “Each commission of fraud by the company while competing for a government contract has cost the taxpayers money.  Whether it’s the Justice Department, the General Accounting Office, or the Department of Defense Inspector General, every time an investigation is launched into Boeing’s activities, it is with tax dollars.  No more should be wasted on this sweetheart lease deal.”

Sen. McCain asked Boeing last month to provide documents relating to the lease deal to the Senate Commerce Committee, of which he is chairman, for its oversight.  But Boeing is just starting to turn them over.  Sen. McCain earlier today threatened to subpoena all requested information if the company is not more forthcoming.  This comes in the wake of the senator receiving information that the company has offered 767s to other countries at a lower cost.

“We commend Sen. McCain for his tough stance against a company with a reputation for cutting corners,” Schatz concluded.  “Companies with a track record like Boeings should be debarred for a period of time from doing business with the government.  This is the only sure way of protecting our tax dollars, and sending a message that crime does not pay.”

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.

 

 

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