ROCKWELL REACHES AGREEMENT WITH GOVERNMENT
ROCKWELL REACHES AGREEMENT WITH GOVERNMENT CEDAR RAPIDS, Iowa, July 21 /PRNewswire/ -- Rockwell
International Corporation (NYSE: ROK) today announced that the United States Government has agreed to drop its criminal prosecution of Rockwell's Collins Avionics & Communications Division (CACD) in Cedar Rapids.
On Oct. 31, 1991, the United States Attorney in Cedar Rapids indicted Rockwell International and one present and one former employee for allegedly overcharging the National Aeronautics and Space Administration (NASA) for work done at CACD on the Space Shuttle program in the early and mid l980's. The indictment followed an investigation begun more than five years earlier. Trial of the charges was set to begin in federal court on August 4. However, under today's agreement the government has agreed to dismiss the charges against the company in their entirety in one year if CACD does not violate federal procurement laws during that one-yeockwell will pay the government $1,425,000 in settlement of disputed claims. The agreement states that the payment includes "amounts offered by Rockwell in 1987 as voluntary contract adjustments and that neither this payment nor this settlement constitutes an adjudication that any false claims were made." The agreement also provides that "the United States will not pursue any civil action against Rockwell with respect to the allegations set out in the pending indictment." "From the very beginning of the government's investigation, we believed that there had never been any criminal conduct by Rockwell or its employees and we repeatedly offered to resolve the matter through a civil settlement," said J.D. Cosgrove, president of CACD. "We are extremely pleased that the government has finally conceded that its criminal charges against the company and the two individuals were without merit. It is unfortunate, though, that the taxpayers and the company were subjected to so much unnecessary expense. And it is even more unfortunate that our CACD employees were unfairly accused of dishonesty and criminality." The agreement also calls for the government to drop two other ongoing criminal investigations at CACD, one involving alleged time charging irregularities on work done on electronic components for F-15 aircraft, and the other involving alleged testing irregularities on the Joint Tactical Information Distribution Program. The latter investigation was the subject of a highly publicized search warrant investigation conducted by the government at CACD in November 1989. At the time of the indictment, the company insisted that it was innocent of any criminal wrongdoing and vowed to fight the charges. In response to the indictment, NASA suspended CACD from doing business with the government until NASA was satisfied that the company was a presently responsible contractor. The suspension was lifted January 15th of this year. "The improper time charges that were at issue here resulted from practices of a few employees in the early 1980's that violated company procedures, but were clearly not criminal," Cosgrove said. "We substantially increased time charging and standards of business conduct training beginning in about 1985 and I am confident that these same practices would not occur today. NASA's decision to lift its suspension of CACD after a thorough review of our present practices, including interviews with many of our employees, demonstrates the strength of our commitment to doing things right at all levels of the company." Rockwell International is a multi-industry company applying advanced technology to a wide range of products in its electronics, aerospace, automotive and graphics businesses. -0- 7/21/92 /CONTACT: Tom Hobson (Cedar Rapids), 319-395-5777, or Christine L. Castro (Corporate), 310-797-5819, both of Rockwell/ (ROK) CO: Rockwell International Corporation ST: Iowa IN: ARO SU: CH -- LA016 -- 1285 07/21/92 11:30 EDT
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|Date:||Jul 21, 1992|
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