U.S. Agency Halts Giveaways of Surplus Planes

A senior Agriculture Department official said Thursday that the agency has ended a controversial program that provided surplus military aircraft to a handful of private companies to fight forest fires.

James R. Lyons, assistant secretary of agriculture, told a congressional panel that the department wants the Defense Department to sell surplus aircraft through competitive bids to companies that will use them to fight fires.

“Our policy will provide for an air tanker and firefighting program which is legal, maintains necessary controls and is cost-effective,” Lyons said.

The previous program was marred by allegations that $67-million worth of surplus C-130 airplanes were given to five private companies in exchange for aged aircraft worth far less. A private businessman who negotiated the transactions made $1.1 million.

The program, which started under the George Bush Administration, was suspended this year after an investigation by the Agriculture Department’s inspector general. Lyons said earlier that the matter is also under criminal investigation but no one has been charged with wrongdoing.

The new program would require passage of legislation enabling the Defense Department to sell surplus aircraft to private companies. Lyons said that the Agriculture Department would retain a lien on the aircraft to help ensure that they were used solely for fire-fighting. Some of the earlier aircraft were used to transport freight in the Middle East.

John Marcus, a Defense Department procurement official, said that the department would be willing to participate in the new program if legislation is passed.