Wedtech ‘Mole’ Spied on Navy, Executive Testifies

The Wedtech Corp. planted a “mole” in former Navy Secretary John F. Lehman Jr.’s office in the fall of 1983 as part of its successful effort to win $143 million in no-bid motorized pontoon contracts, a former Wedtech official testified Friday.

Mario Moreno, who was executive vice president of the Bronx-based defense contracting firm, said the company paid $60,000 in cash for the services of Richard D. Ramirez, a civilian official then in charge of the Navy’s small business program in Lehman’s office.

“He kept us informed of everything that was going on . . . everything that was taking place inside the Navy,” Moreno testified at the Wedtech influence-peddling trial in U.S. District Court in New York.

One of four former Wedtech officials testifying for the government in exchange for leniency, Moreno gave a detailed account of the campaign that landed the now-bankrupt company the biggest government job it ever got before federal and state investigators caught up with it in 1986.

Says Meese Intervened

Moreno also said, as he did in an affidavit for a Senate subcommittee last September, that he believed Atty. Gen. Edwin Meese III intervened with the Pentagon in December, 1983, by calling then-Defense Secretary Caspar W. Weinberger on Wedtech’s behalf.

He said Wedtech received information on Navy activities from Meese’s close friend, E. Robert Wallach, a Wedtech consultant. He said Wallach also told him that Weinberger, after Meese’s call, had put in a good word for the company with Lehman.

Lehman, who resigned as Navy secretary last year, had not been named in Moreno’s earlier account. He could not be reached for comment. Spokesmen for Meese and Weinberger have said the secretaries had no recollection of talking to each other about Wedtech.

Large, Urgent Project

The Navy had originally wanted to ask for competitive bids on most of the pontoon work because of the size and urgency of the project. The 90-ton units, to be linked together to form motorized causeways, were designed to get supplies from ship to shore in a hurry for U.S. rapid deployment forces.

After Wedtech’s lobbying efforts, the Navy reversed its position in early January, 1984, and turned over the entire program to the Small Business Administration. SBA officials immediately named Wedtech as their candidate.

Ramirez, whose conduct has been under investigation, could not be reached for comment.