UNDERNEWS

Undernews is the online report of the Progressive Review, edited by Sam Smith, who covered Washington during all or part of one quarter of America's presidencies and edited alternative journals since 1964. The Review has been on the web since 1995. See main page for full contents

July 17, 2009

HUGE COURT CASE AGAINST MAJOR GOVERNMENT CONTRACTOR

Steven Pearlstein, Washington Post - Science Applications International Corp. is not only one of the federal government's largest contractors -- with more 17,000 Washington area employees, it is the region's fourth-largest private employer. So it is of more than passing interest that after a lengthy investigation, the Justice Department has now accused company executives of conspiring with corrupt Navy officials to rig a 2004 computer contract potentially worth billions of dollars.

Last week the Justice Department asked a federal judge in Jackson, Miss., to order the company to pay damages that could top $350 million -- a lot of money for a company that earned $450 million last year. A judgment might also lead the government to temporarily suspend SAIC from competing for new contracts.

2 Comments:

Anonymous Mairead said...

But the top-level managers won't go to prison. They're immune, though they are the ones who sponsor and wink at the criminality.

Nor will the corporation be dissolved, as it should be, with its assets sold off (or given to the low-level employees to reconstitute as a distributed-profit cooperative)

Probably nothing at all will happen, with any penalty being resisted until the right official can be bribed to kill the prosecution as being "too expensive".

July 17, 2009 3:24 PM  
Anonymous Anonymous said...

What about the corrupt Naval officials? Will they keep their positions? Will they receive a dishonorable discharge, and loose their benefits; or will they merely be asked to resign?

And... if they do leave the military. Will they find employment (in a couple years) as representatives for a military contractor or PAC, and how much money will they be paid.

Or, will a Seaman Apprentice be found guilty?

-DaTheorist

July 20, 2009 12:32 PM  

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