U.S. Resumes General Dynamics Payments

The Pentagon, satisfied that General Dynamics Corp. has made progress in strengthening its internal accounting controls, has resumed monthly payments to the firm for its general overhead charges, a top Navy official said today.

Everett Pyatt, assistant secretary of the Navy for shipbuilding and logistics, said the Pentagon is also prepared to release roughly $100 million of the $437.8 million withheld since a payment-suspension order was issued March 5 by Defense Secretary Caspar W. Weinberger.

Pyatt said the Pentagon is satisfied that General Dynamics has instituted tougher guidelines to prevent employees from submitting unallowable expense claims. He said the Navy and the Pentagon are both strictly enforcing a new regulation requiring executives to certify that claims are proper under penalty of perjury.