Boeing (BA) has reached a settlement with the U.S. State department for $51 million due to multiple export violations, including Chinese employees in China improperly downloading documents related to U.S Defense Department programs. The violations occurred from 2013-2017, involving date of programs like the F-18, F-15, and F-22 fighter jets, the E-3 airborne warning and control system, the AH-64 apache helicopter and the AGM84E cruise missile. Unauthorized downloads also took place in 18 other countries between 2013-2018 at Boeing and partner facilities, including the likes of Australia, Russia, the UK, India, and Hong Kong.
The settlement resolves 199 violations of the Arms Export Control Act and International Traffic in Arms Regulations. Boeing, which disclosed the violations voluntarily, will have to implement remedial compliance measures and engage an external special compliance officer for at least 2 years. The settlement included a $51M civil penalty with $24M suspended for compliance program improvements.
The State Department said the settlement "highlights the importance of exporting defense articles only pursuant to appropriate authorization" and followed "an extensive compliance review" by the government.
7 comments:
It is crazy that they are now just getting handed sanctions for this as it happened over a decade ago. I wonder what other airlines/airplane companies have done similar harm to national security. Maybe boats and mauritime as well.
I'm astonished that they one, got away with that for so long, and two that they weren't punished more severely! I feel like that's a transgression that could be punishable under treason charges. A big corporation either selling or stealing classified information about dangerous defense aircraft should be punished more so than money! They already have tons of that, it could be like a slap on the wrist in all reality.
Just another example of big companies getting a slap on the wrist for something super serious. Feel like we're always seeing Boeing in the headlines and we probably will again with such light consequences. This is probably the best outcome they could've hoped for.
Considering that Boeing is a $120 billion company, a $51 million fine does not do justice, especially considering this happened almost 10 years ago. Boeing should have also included more safety measures when it came to hiring Chinese labor. America is very sensitive to China having their information, so Boeing should have been better prepared for this. Since Boeing is a military contractor, nothing major will happen to them, a simple "Slap on the wrist" is all they will get.
It is surprising that the fine for 199 violations like this is only $51 million when considering the size of Boeing as a corporation and the potential danger of the information that was leaked. I am sure there are many other companies that have had instances such as this but Boeing is just the first to come out since they volunteered this information.
Boeing had to pay $51 million to the U.S. State Department because they broke export rules. They let people in China and other countries download secret documents about U.S. military programs without permission. Boeing admitted to the violations and will now have to follow strict rules to prevent it from happening again. The State Department says it's important to get permission before exporting defense materials.
I wonder what steps aerospace companies should take in the future to enhance and enforce internal compliance measures, so that they can ensure the protection of sensitive information and adherence to international regulations?
Post a Comment