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Pratt & Whitney illegally sold military tech to China

Discussion in 'Sports and News' started by bigpern23, Jul 10, 2012.

  1. bigpern23

    bigpern23 Well-Known Member


    The defense contractor helped China develop a modern attack helicopter, violating expressly stated conditions of its contract with the DOD. The government is slapping P&W with a $75 million fine, though the company has north of $2 billion in government contracts.

    Seems the punishment might be a little bit light considering part of its contract with the government is written specifically to keep the U.S. military ahead of China's rising military power.
  2. nmmetsfan

    nmmetsfan Active Member

    I'm sorry but you don't mess around when it comes to defense. If they violated the conditions of the contract with the DOD, they should have all current contracts terminated and not be allowed to bid on any in the future.
  3. LongTimeListener

    LongTimeListener Well-Known Member

    Seems like a pretty cruel way to treat a Job Creator.
  4. Azrael

    Azrael Active Member

    What's most important is that by fining them 1/178th of their annual revenue after a six-year probe, they'll surely learn never to do this again.
  5. bigpern23

    bigpern23 Well-Known Member

    Unfortunately, you can't just cancel existing contracts with the company because we've already sunk hundreds of millions of dollars into projects such Pratt's development of the jet engine for the F-35 Joint Strike Fighter. Canceling the contract would be akin to throwing that money away (or worse, allowing them to sell it to China since they'd no longer be under contract with DOD).

    Also, you have to consider the Americans the company employs. Putting them out of work isn't good for the country either.

    It's a pretty sticky situation, really. How do you punish the company leadership without torching your investment and hurting the rank and file workers?

    Seems the best way would be to go after the decision makers themselves, either with individual fines or jail time, while leaving the company intact.
  6. LongTimeListener

    LongTimeListener Well-Known Member

    Would probably merit federal criminal charges more than whatever the hell they brought Clemens in for.
  7. Flying Headbutt

    Flying Headbutt Moderator Staff Member

    Odds are, at least in some cases, whoever picks up those contracts would just hire the rank and file workers from the other company.
  8. Azrael

    Azrael Active Member

    Be interesting to see if United Technologies (the parent) can keep itself out of this.
  9. TigerVols

    TigerVols Well-Known Member

    Since people are corporations, are Pratt & Whitney two people?
  10. Pancamo

    Pancamo Active Member

    Why isn't is this treason?
  11. Killick

    Killick Well-Known Member

    Want to give U.S. military contracts some teeth? How about an exclusivity clause that says if a firm is caught dealing like this again, they forfeit the revenue generated from its violation.

    Want to supply our opponents? Fine. But you won't profit a single cent.
  12. Azrael

    Azrael Active Member

    Is China our "enemy"?
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