the oldest 136 of its KC-135s. The 10 year lease would give the USAF the option to
purchase the aircraft at the end of the contract. In September 2003, responding to critics
who argued that the lease was vastly more expensive than an outright purchase, the DOD
announced a revised lease of 74 aircraft and purchase of 26.
In December 2003, the Pentagon announced the project was to be frozen while an
investigation of allegations of corruption by one of its former procurement staffers,
Darleen Druyun (who had moved to Boeing in January) was begun. The fallout of this
resulted in the resignation of Boeing CEO Philip M. Condit and the termination of CFO
Michael M. Sears. Harry Stonecipher, former McDonnell Douglas CEO and Boeing
COO, replaced Condit on an interim basis.
Druyun pleaded guilty to inflating the price of the contract to favor her future employer and
to passing information on the competing Airbus A330 MRTT bid (from EADS). In October
2004, she was sentenced to nine months in jail for corruption, fined $5,000, given three
years of supervised release and 150 hours of community service.
Testimony by
W. James McNerney, Jr.
Chairman, President and Chief Executive Officer
The Boeing Company
to Senate Armed Services Committee
On the Boeing-U.S. Government Global Settlement
August 1, 2006
Companies doing business with the U.S. government are expected to adhere to the
highest legal and ethical standards. I acknowledge that Boeing did not live up to those
expectations in the cases addressed by the settlement we’re discussing here today. We
take full responsibility for the wrongful acts of the former employees who brought
dishonor on a great company and caused harm to the U.S. government and its taxpayers.
On August 11, 2006, Boeing announced an agreement to form a joint-venture with the
large Russian titanium producer, VSMPO-Avisma for the machining of titanium forgings. On December 27, 2007 Boeing and VSMPO-Avisma created a joint venture Ural
Boeing Manufacturing and signed a contract on titanium products deliveries until 2015,
with Boeing planning to invest 27 billion dollars in Russia over the next 30 years.
The CEO of Boeing, W. James McNerney, Jr. was reported by Forbes to have profited $17,664,975.00 in 2006. Since his annual salary is a mere $1,750,000.00 obviously he stands much personal gain based on incentives and bonus agreements based on acquisition of contracts. Does anyone really believe that Boeing's interest is about preserving American JOBS?
STAND UP MOBILE & FIGHT FOR A FUTURE FOR ECONOMY AND OUR CHILDREN!
