Pentagon Probes Possible Fraud in Development of Stealth Bomber
The government is investigating possible fraud in Northrop’s controversial B-2 stealth bomber program, the Defense Department said Wednesday.
Pentagon spokesman Pete Williams said the two separate probes of the B-2 program do not involve defective parts or the operation of the radar-evading bomber. He declined to provide other details.
However, a source close to the investigation said at least one of the inquiries involves possible fraudulent billing by Northrop in the program, to which the government has committed $23 billion so far.
The investigations are being conducted by a special team dedicated to investigate possible criminal violations at Northrop, according to the source. More than a dozen investigators from the Air Force, the Defense Contract Audit Agency and the Defense Criminal Investigative Service are assigned to the government task force based in Redondo Beach.
Northrop spokesman Tony Cantafio said the Los Angeles defense contractor was “not informed of what, if anything, they are investigating.”
Showdown in the Works
Northrop is already the target of several government investigations into various of its other defense programs, including the MX missile, Tacit Rainbow missile and the F-20 fighter. On April 11, a federal grand jury in Los Angeles accused the company of falsifying tests on the Air Force’s air-launched cruise missiles and the Marine Corp’s Harrier “jump-jet” fighter.
The stealth bomber probes come as the two houses of Congress head for a showdown over how much to spend on the program. It could cost $70 billion to build the proposed 132 bombers.
On Wednesday, the House voted to halt production of the bomber while the Air Force looks for ways to make it cheaper. Also, the House said only two bombers could be built next year, even after the Air Force cuts the program’s cost. (See story, Part I Page 1.)
The Senate on Tuesday voted overwhelmingly to support the program and to allow three B-2s to be built in 1990. However, it stipulated that none of the money allocated for fiscal 1990 could be spent until the bomber is certified as airworthy.
The tail-less, four-jet aircraft, made from special composite materials intended to absorb radar signals, is designed to slip into enemy territory undetected. Shaped like a boomerang, it made its maiden flight July 17 from Palmdale to nearby Edwards Air Force Base, where it will undergo more flight testing.
According to the source, the government probes of the B-2 were inspired by what federal attorneys learned from a civil suit in which four former and present Northrop employees alleged that the company overcharged the government by $2 billion on the B-2 project.
Last October, the Justice Department decided against joining that civil suit, which was filed on behalf of the employees by Claremont attorneys Herbert Hafif and Robert Kilborne. The Justice Department declined to join the civil suit, reportedly because it learned that the Air Force knew about the allegedly questionable billing practices but did nothing to stop them.
Commenting on the government probes, Hafif said Wednesday, “We are pleased to see this further confirmation that our charges are correct.”
Staff Writer Ralph Vartabedian contributed to this story.
