Pratt & Whitney illegally sold military tech to China

[bigpern23]

http://www.theatlantic.com/international/archive/2012/07/pentagon-contractor-caught-illegally-selling-military-technology-to-china/259469/

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.

 

[nmmetsfan]

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.

 

[LongTimeListener]

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

 

[Azrael]

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.

 

[bigpern23]

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.

 

[LongTimeListener]

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

 

[Flying Headbutt]

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.

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

 

[Azrael]

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

 

[TigerVols]

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

Since people are corporations, are Pratt & Whitney two people?

 

[Pancamo]

Why isn't is this treason?

 

[Killick]

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.

 

[Azrael]

Why isn't is this treason?

Is China our "enemy"?

 

[Baron Scicluna]

Why isn't is this treason?

Is China our "enemy"?

Nah, they're too hard to conquer.

 

[Armchair_QB]

Why isn't is this treason?

Is China our "enemy"?

Yes.

 

[TigerVols]

Why isn't is this treason?

Is China our "enemy"?

Yes.

So every Wal-Mart shopper is guilty of conspiring with the enemy?

 

[Greenhorn]

It is astounding how many commie-hating free enterprisers are so darn eager to do business with a Communist nation. Profits over patriotism.

 

[YankeeFan]

It's too bad Bill Clinton isn't the President.

He'd know how to deal with this.

 

[User 1019]

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.

Yeah, that'd be great. 'Cept, who's gonna build new jet engines?

 

[nmmetsfan]

Where there is demand there will inevitably be supply.

 

[Azrael]

Sure. We can get GE or Rolls Royce to make them.

www.motherjones.com/politics/2011/04/military-ge-f136-jsf-engine

www.indystar.com/article/20120605/BUSINESS/206050362/Rolls-Royce-must-face-whistle-blower-suit-over-Defense-contracts