April 9, 2006
Boeing Problems With Arms Export Control Act
According to the Washington Post (AP) here, Boeing will be paying $15 Million to settle an alleged violation of the Arms Control Export Act. It seems that 19 planes were sold to China with a chip that was prohibited to be sold by the US to China. In addition to the monetary settlement, the company will also be appointing "an independent, external officer to oversee company wide export-control compliance for two years." They will also be "retain[ing] an outside firm to audit its efforts."
This is not the first fine Boeing is paying amounts for an alleged sale of items to China. According to NewsMax here Boeing paid "a $2.12 million fine to settle criminal charges against its McDonnell Douglas subsidiary for the 1994 export of surplus machine tools and other equipment to China National Aero-Technology and Export Corp." There was no admitting of wrongdoing here. (See also NYTimes here for discussion of other amount paid by Boeing).
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