Voi-Shan Unit’s Suspension Unwarranted, Fairchild Says
Fairchild Industries said Monday that the suspension of its Voi-Shan subsidiary last week by the Defense Logistics Agency was “an unnecessary precaution.”
Culver City-based Voi-Shan is under investigation by a federal grand jury in Seattle for improperly testing nuts, bolts and rivets that it sold to the government. In addition, the company is being sued by three current and former employees on behalf of the federal government.
Fairchild did not comment directly on the substance of the allegations that it improperly tested aerospace fasteners at its Chatsworth facility in its announcement Monday.
“Fairchild reemphasized its confidence in the safety of its products and integrity of its employees,” the company said. It also said that its customers and distributors tested Voi-Shan products early this year and “no failures were found.”
The company said it has placed three employees at its Chatsworth facility on administrative leave. It also has made organization changes to “strengthen management personnel, as well as reporting and quality control procedures.”
The suspension affects direct fastener sales to the U.S. government, virtually all of which are for spares. That represents about $10 million in sales.
Fasteners account for $175 million in Fairchild revenue in 1988 and Voi-Shan accounts about two-thirds of that total, a company spokeswoman said. The Chatsworth facility accounts for about $53 million in company revenue, she added.
