Skip to comments.Pentagon's 'Dragon lady' But now sentenced to prison for favouring Boeing over Lockheed
Posted on 10/10/2004 1:09:16 PM PDT by familyop
Isn't Tom Duschellhound's wife a lobbyist for Boeing??
...different perspective and title overseas, no? We missed a major part of the real story, but the folks in Singapore didn't.
Disgusting!...Glad she was caught.
$4 billion is a pretty big bribe to protect your daughter's job.
This will send Boeing even further down the tubes, IMHO. It was a great airplane company in the old days.
Wonder if she'll be sharing a cell with nartha stewart?
No checks & balances No accountability.....encourages criminal behavior
Jail her and those who conspired with her
Will she go to Camp Cupcake, the resort "prison," with Martha Stewart?
There will be a million new rules for the "little people" to follow as a result of her stupidity.
The question is why only 9 months for costing us taxpayers billions of dollars?
Not if Stewart's luck holds out.
October 28, 2003
Fill 'er up
DefenseTech: NEW SCRUTINY FOR BOEING DEAL
DefenseTech points out two op-eds about the plan to lease Boeing 767 tankers for the Air Force.
David Brooks of the NYT notes
The chief Air Force official pushing the deal was Darleen Druyun. As The Washington Post reported yesterday, Druyun has recently left the Air Force and gone to work for Boeing. She sold her $692,000 northern Virginia home to a Boeing lawyer. Her daughter works for Boeing. None of this may be illegal or even wrong, but is this what makes you proud to be an American?
First, this whole mess started because the Air Force can't pay for new tankers up front, so it tried to push back the costs by leasing. Maybe it's time to stop trying to run a Bush foreign policy on a Clinton defense budget?
Yesterday the WaPo ran a large piece on the proposed deal.
In December 2001, language authorizing the deal -- but providing no money -- emerged in legislation in what Hill veterans refer to as a "virgin birth," meaning it was inserted into the defense appropriations bill after the bill had passed the House and Senate, during closed negotiations between conferees. It was then approved on the House and Senate floors as part of a compromise bill.
Senate Appropriations Committee Chairman Ted Stevens (R-Alaska), a longtime supporter of expanding federal leasing, has claimed credit for inserting the language. One month before he did so, he received $21,900 in campaign contributions from 31 Boeing executives at a fundraiser in Seattle, where Boeing has many employees.
30 of those 31 had not contributed to Mr. Stevens within the past 10 years. And Darleen Druyun? Get a load of this:
After the Sept. 11, 2001, terrorist attacks, Boeing pressed the idea with new vigor. Airlines had deferred commercial orders for 767s, and Boeing laid off thousands of employees at plants in Everett, Wash. But the Air Force had not even listed tankers among its "unfunded priorities" in 2001, a multibillion-dollar wish list of weapons it wanted but could not afford. The Air Force had no money to buy the tankers, so on Sept. 25, 2001, the company's top executives met with Darleen A. Druyun, then a senior Air Force acquisitions officer, at the Pentagon to work out a lease deal instead.
Druyun agreed at the meeting, according to notes taken by Boeing, not only to promote the leasing idea on Capitol Hill but also to find needed money by cutting back a comparatively inexpensive modernization program for existing tankers -- an arrangement, Boeing and the Air Force have acknowledged, that will retire flightworthy tankers early to procure new ones.
(Emphasis mine) Is there ANYTHING about this deal that doesn't stink? I've been skeptical of the actual NEED for new tankers, but readers will recognize that I'm all for making sure our military has the hardware it need to fight this war. The plan to cut back maintenance of the existing tankers, though, is a clear signal that new tankers aren't needed. At least not as soon as lease-backers would have us believe.
In November 2001, the Air Force drafted a document spelling out what capabilities the new tankers must have. Col. Mark Donohue, an official in the air mobility office, promptly sent it to Boeing for private comment, and the company sought, and received, concessions so the requirements matched what the 767 could do. The Air Force agreed to drop a demand that the new tankers match or exceed the capabilities of the old ones.
I've heard this before, but it's never been clear what that specification was.
Asked a month ago about Boeing's travails, [President] Bush spoke about trying to "help the worker, help the economy" by funding the construction of new planes. About the tanker leasing deal, he said, "I think it's going to go through."
How does overspending for something that you don't need "help the economy"? It helps Boeing, for sure, and helps THOSE workers, but isn't cutting taxes then turning around and squandering what's left just a little ludicrous?
If we really need tankers, buy them. Make some hard decisions. And I don't have a problem buying from Boeing, even if AirBus had a slightly better offer. If we're going to spend, we should spend in America unless it's stupid to do so. But first we need to be sure we really need to spend. We could sure buy a lot of Interceptor body armor for $5.6 billion.
Posted by murdoc at October 28, 2003 01:08 PM | Military & Defense
Does she get to keep her pension?
Disgusting. Up against the wall, shoot her, invoice the daughter for the bullet.
Let's hope so. Boeing has a duty to its shareholders to compete tooth-and-nail for government business, but Boeing also has a duty to the customer, the taxpayer and to itself, to deal honestly when it deals with government. I hope the executives that were complicit in this deal are charged appropriately.
The cost to the government will be in the millions, the cost to the losing contractors was in the 10's of millions, and re-opening any contracts will mean our defense forces get necessary equipment late.
January 7, 2003
The Godmother of Boeing Makes a Soft Landing
By JEFFREY ST. CLAIR
Darleen Druyun proudly calls herself the Godmother of the C-17, the unwieldy transport plane that will be doing much of the heavy lifting during the roll up to Bush's war on Iraq. The plane's performance has gotten mixed reviews, but as chief acquisitions officer at the Air Force Druyun pushed relentlessly to have more of those cargo planes bought and at a premium price. As a kicker, Druyun drafted a quaint provision that would have inoculated the C-17 contract from any pesky government oversight over the likely runaway costs of the program. By the way, the C-17 is made by Boeing.
Druyun's unceasing efforts at the Pentagon to push this sweetheart deal on behalf of Boeing eventually prompted an internal investigation by the Defense Department's Inspector General and even aroused a rare public rebuke from Defense Secretary Donald Rumsfeld.
Druyun recently left the Pentagon, but now she has made a soft landing at the very company she had labored for so zealously in public office: Boeing.
In a January 3 company press release, Boeing executives gloated that Druyun will head up the company's missile defense division headquartered in Washington, DC. This is one of the more plum positions in town. Boeing is the prime contractor for what the Pentagon calls the Ground-based Midcourse Defense Segment and serves as the lead contractor for the Missile Defense National Team's Systems Engineering and Integration program. These contracts have already generated billions in revenues for Boeing, but much more is on the way. The company expects to do a brisk business now that Bush has officially jettisoned the ABM Treaty and given the greenlight for the rapid deployment of the latest version of the Star Wars scheme. Druyun's duties at Boeing will also include hawking the Airborne Laser program and the Patriot anti-missile system, which seems likely to get another big boost in sales to Israel and Kuwait with the upcoming war on Iraq.
"Darleen Druyun helped drive acquisition reform within the Air Force," said James Evatt, Boeing's senior vice-president for its Defense programs. "Her 'Lightning Bolt' initiatives, which jump-started the reform process. Her personal passion and drive are well known within the defense industry, and we expect her to be a key player in our future success."
Pentagon watchdogs have a somewhat different recollection of Druyun's tenure at the Air Force. They say that the Godmother's initiatives favored the defense contractors, while looting the treasury and putting Air Force pilots in relatively untested and even unsafe planes. The C-17 affair is perhaps the most brazen example of her labors on behalf of the weapons lobby.
In 1990, Congress approved an Air Force plan to buy 120 C-17s from Boeing for $230 million apiece. That contract runs out later this year. In the fall of 2000, the Air Force said it wanted another 60 planes. But Boeing wanted to sell them many more. And they engaged in a bit of blackmail to get their way. Boeing officials claimed that they couldn't afford to keep the C- 17 in production unless they built a minimum of 15 planes each year. Yet, the even the Air Force admitted it didn't need that many planes. And the General Accounting Office contends that the Air Force actually only requires about 100 heavy transport planes, 20 fewer than it has already got. With other big ticket items like the F-22 and the Joint Strike Force Fighter on the Air Force's wish list, the C-17 seemed unlikely to survive congressional scrutiny.
So a plan was hatched to make the new fleet of planes quasi-private. Under this scenario, some of the C-17s would essentially be rented out to private haulers, who would then be in a position to receive financial kickbacks for using the aircraft. According to Pentagon sources, the idea to reclassify the C-17 contract from a military to a commercial project originated with Boeing. It's not hard to figure out what office they went to with the idea. This scheme contained another nifty prize for Boeing. By reclassifying the deal as a commercial operation, it alleviated many of the detailed reporting requirements that go along with defense contracts.
Druyun seized on the idea and wrapped the program in the then ripe rhetoric of the Clinton/Gore reinventing government scheme. "This program is very appealing to all parties involved: the Air Force, the commercial operators, the manufacturers and the American taxpayer," Druyun boasted in December of 2000. In a sign of things to come, this quote appeared in a Boeing press release.
Druyun also raved that the new contract would enable Boeing to employ "streamlined processes" in the production of the plane--never a welcome sign when it comes to building military aircraft, at least from the pilot's point of view.
All this prompted the Pentagon's chief testing official to object the plan as a potentially hazardous operation. "Policies and procedures flowing from the push toward commercial acquisition are leading the C-17 down a risky path," wrote Philip Coyle, then director of the Defense Department's Operational Test and Evaluation Division. "A lack of fiscal, technical, and testing realism may be creating fleets that cannot meet effectiveness, sustainability, or interoperability requirements."
After the scheme was exposed by the Project on Government Oversight and by a subsequent report in CounterPunch, the C-17 plan fell apart. When the dust finally settled, Druyun cashed in her chips with Boeing. Now she's stalking bigger game: missile defense, a multi-billion dollar bonanza for defense contractors, with Boeing at the head of the trough.
"Ms. Druyun is now officially an employee of the company whose interests she so ardently championed while she was supposedly representing the interests of the taxpayers," says Danielle Brian, executive director of the Project on Government Oversight. "This is one of the most egregious examples of the government revolving door in recent memory."
Of course, plucking operatives from the halls of the Pentagon is nothing new for Boeing. Over the years, the company has festooned its corporate board and the halls of its lobby shop with a bevy of top brass.
Recently, Boeing's board has boasted both former Defense Secretary William Perry and John M. Shalikashvili, the former chairman of the Joint Chiefs of Staff. In 2001, Boeing also hired Rudy de Leon, Clinton's Deputy Secretary of Defense, to run its Washington office. Although De Leon is known as a proud hawk and a masterful dealmaker, his hiring may have been a rare misstep for Boeing, since congressional Republicans howled that the company should have picked one of their own from the Pentagon's rolls.
But by adding the Godmother of the C-17 to the company's DC hangar, the defense contractor seems to be well on the road toward making amends and, naturally, fattening Boeing's bottom line courtesy of the federal treasury.
Jeffrey St. Clair can be reached at: email@example.com
Here's the beauty.
My new favorite Congressman, Christopher Shays, is now requesting Sarbanes-Oxley accountability for agencies such as Fannie Mae and Freddie Mae.
If this catches on (and it will if Bush gets another term), all government agencies will have to be monitored under these laws and more largesse and corruption will be exposed.
She should be impoverished and jailed for years not months. So should her brat and her boy friend. The way I look at it their whole Boeing salarys are proceeds of a criminal conspiracy and should be forfit. They can pay the judgements from their net worth and/or flipping burgers into their 80s.
Make an example of her and her family.
Martha Stewart insn't in a pleasant place..I saw a program on the prison...She should have kept her mouth shut and might have gotten the better places.
Linda Daschle is up little Tommy's dirty eyeballs with Boeing. The search below will show her long time involvement with Boeing.
Yup! These could "pay" for Bush's tax cut.
FWIW, this is the reason I am always against raising taxes and for tax cuts. There will always be more funds for "investment" in reducing government largesse and corruption, than in squeezing more out of the taxpayer.
This US Government employee was not a member of the US Air Force.
Shay's is on to something (and so is Mr. Bush).
By going after these agencies, he knows that we can, in fact, get our tax cuts and more.
I have read where the Pentagon (bureacrats) is not happy about cuts, and that will be the next one that gets a going over.
Linda Daschle's involved? Wow! All see Grampa Dave's post #23.
Thanks. Here's another one.
Friday, October 8, 2004
Boeing military scandal grows
Lockheed weighs legal action over contracts
By LESLIE WAYNE
THE NEW YORK TIMES
When the Lockheed Corp. lost a $4 billion contract to The Boeing Co. in 2001 to upgrade the electronic controls of the C-130 transport plane -- a plane that Lockheed itself had designed and built for the Pentagon since the 1950s -- the tight-knit world of military contractors was stunned.
The person handing Lockheed that harsh blow was Darleen Druyun, the No. 2 weapons buyer for the Air Force, with the authority to pick and choose among bids for multibillion-dollar military contracts. So strong was Druyun's reputation for hard work and rectitude that no one questioned her startling decision.
Today, Lockheed is once again in shock, but for different reasons. It turns out that it was competing in a rigged game -- one in which Druyun, who left her civilian position in the Pentagon last year to take a job at Boeing, now says she tilted in Boeing's favor out of gratitude for its hiring of her daughter and her daughter's boyfriend.
Lockheed is now talking with its lawyers, and the Pentagon and its extensive network of military suppliers is caught up a scandal that only grows by the day.
The career of Druyun, once the most powerful woman in the Air Force, of course, is over. Last week, she was sentenced to nine months in prison for having steered billions of dollars in Air Force contracts for four critical weapons systems to Boeing and for having overpaid the company as well.
Her downfall has wide consequences for the $140 billion Pentagon contracting industry, and its political ramifications lead all the way to the White House, where three top administration officials are under investigation in the case.
In addition, Druyun's actions are now the subject of potential lawsuits, all-but-certain congressional hearings, an expansion in ongoing federal investigations, a possible reopening of many of Boeing's contracts and additional scrutiny of the Pentagon's procurement process and the individuals who oversee it. Boeing has said it is cooperating in all federal investigations.
"This is just awful," said Richard Aboulafia, an analyst at the Teal Group, a military consulting firm in Fairfax, Va. "She was trading the keys to the kingdom."
Sen. John McCain, R-Ariz., predicted that "there will be more shoes dropping" before the scandal ends. One of those shoes may have fallen Wednesday night. Air Force Gen. Gregory Martin withdrew his nomination for one of the highest positions in the military -- commander for the Pacific and East Asia -- after a blistering attack by McCain in a hearing over Martin's close ties to Druyun.
Many of the affected parties are still reeling from Druyun's admission that she favored Boeing on the four Air Force contracts: a controversial aerial refueling tanker plan, a NATO airborne early warning and control system and a C-17 cargo plane contract, as well as the transfer of the C-130 work from Lockheed.
Although many industry analysts do not see any immediate upheaval, they predict that eventually Boeing could, among other things, be subject to an outside monitor and forced to pay substantial fines.
Some independent experts are already saying that, at a minimum, some contracts should be reopened.
"Lockheed has been jumping up and down for years saying that she had been favoring Boeing over them," said Danielle Brian, executive director at the Project on Government Oversight, a Washington non-profit that studies weapon systems.
The full extent of Druyun's pro-Boeing bias came as a surprise at her sentencing hearing in court Friday. Previously, Druyun's only known misdeed was that she had negotiated a $250,000 job at Boeing while overseeing Boeing Air Force contracts.
But she had long maintained that this conflict had not tainted her professional judgment.
Only after failing a lie detector test did Druyun finally admit that her weapons-buying decisions were influenced by a desire to curry Boeing's favor for herself and her family.
Court papers show that Druyun, while still at the Pentagon, met in secret with Boeing executives to talk about a job and to protect her daughter, a Boeing employee who had received a poor performance review. After that revelation, Boeing's chief financial officer, Mike Sears, who negotiated Druyun's employment contract, was fired. He is now cooperating with prosecutors.
The new evidence of Druyun's wrongdoing challenges just about every assumption Washington insiders held about her. In her three-decade career, Druyun's reputation for toughness as she rose in the male-dominated Pentagon was so strong that she was nicknamed the "Dragon Lady."
By next week, Lockheed will have to decide whether to lodge a protest under federal contracting law with either the Air Force of Congress' budget watchdog, the Government Accountability Office, or through the courts.
"We haven't decided what we are going to do," said Thomas Jurkowsky, a Lockheed spokesman, who pointed out that Litton Systems had succeeded in overturning a tainted contracted during the "Ill-Wind" military procurement scandals of the mid 1990s.
If the Air Force determined that Boeing's C-130 contract was fraudulently awarded, it could, in theory, terminate the contract and seek to recover all money paid to Boeing, said Steven Schooner, co-director of the government procurement law program at George Washington University. As a practical matter, however, Schooner doubts that would happen.
"Would I bet on it? No," he said. "But this is the most dramatic case in two decades, and the most egregious one in the modern era of procurement."
At the White House, the Justice Department is continuing a review of e-mail exchanges among three top administration officials involved in one of the contracts Druyun negotiated -- a controversial $23.5 billion aerial refueling tanker proposal that has since been sidetracked over questions about its value.
Druyun admitted giving Boeing a sweetheart price on the tanker deal as a "parting gift," according to court papers, as well as giving Boeing proprietary data from a rival bidder, the Airbus European consortium. EADS North America, a unit of Airbus' corporate owner, which is already engaged in a competitive feud with Boeing, said it is also considering some form of legal action, yet to be determined.
At the Air Force, spokesman Douglas Karas said an internal review of Druyun's contracts that began last December would be expanded by the new revelations. Already, a $100 million payment to Boeing that Druyun negotiated and now has admitted in court papers was too high is being renegotiated. That payment was for Boeing's work on the NATO airborne early warning system.
Druyun's latest admissions could not have come at a worse time for Boeing. The company is currently operating under a ban that prevents it from bidding on new Air Force contracts to launch rockets, after it was discovered that Boeing employees had stolen up to 25,000 proprietary Lockheed documents. The Air Force also stripped Boeing of $1 billion in rocket contracts.
After the Druyun scandal erupted late last year, Boeing Chief Executive Phil Condit resigned. A number of Boeing employees, including James Albaugh, who runs the company's defense unit, have met with federal prosecutors.
An official close to the U.S. Attorney's Office said Albaugh is not a target of its investigation.
Let the three of them drive trucks in Iraq.
Hopefully some 527 bill boards showing the connection between Linda Da$$hole, Boeing and this Dragon Lady can magically appear all over little Tommy's playground state before the election.
Let's hope so. I dislike tax wasters as much as I dislike tax raisers.
Yep let them drive trucks with armor nor weapons in Iraq and no protection from our warriors.
Put Momma Dragon Lady on the point truck to and from the various hell holes in Iraq.
Good to see someone getting caught for expecting "good service". ::cough:: ::cough::
So, is this a good time to buy Boeing stock?
Years ago, I was a contractor at the Pentagon, and "Mrs. Dryun" was notorious for wanting it HER way, and no other. To the point where she'd literally rip into anyone who DARED refer to her as "Ms." Druyun. . .
Nice to see that in the end, she got hers. . .
No, there are checks and balances and accountability. That's why she's going to prison.
WASHINGTON (Talon News) -- Tuesday's New York Times reported on a $20 billion Pentagon plan to lease air refueling tankers from the Boeing Company. The newspaper cited that liberal and conservative groups opposed to the arrangement called it a "sweetheart deal" that must be approved by Congress. The article pointed out that Boeing has hired lobbyist Linda Daschle, the wife of the Senate Minority Leader Tom Daschle (D-SD) to represent the company.
South Dakota's largest newspaper, the Argus Leader, is not reporting the story today. In fact, the Argus Leader never prints a story about the lobbying of Linda Daschle. In recent weeks, Executive Editor Randell Beck has been quoted as saying that this is because the Argus Leader doesn't report on the wives of candidates.
The Argus Leader did write a 1995 editorial critical of Marianne Gingrich, wife of the House Speaker, Republican Newt Gingrich, for taking a position with Israel Export Development Company. The newspaper wrote, "The spouses of U.S. leaders should be held to a high standard: Not only should they avoid impropriety, they should avoid all appearances of impropriety."
In 1990, the South Dakota newspaper published a thirty-six paragraph article about Harriet Pressler, wife of Republican Sen. Larry Pressler that suggested the senator had used his office to help his wife's real estate business. By contrast, the recent purchase of a $2 million Washington, DC home by Sen. Daschle and his wife is mentioned by the paper in only five sentences.
Last week, South Dakota businessman Neal Tapio accused the Argus Leader and its political reporter David Kranz of covering up a long association between the senator and Kranz that goes back 30 years. The Argus Leader has refused to acknowledge or disclose that relationship. Tapio implies that the newspaper's reporting has been skewed in favor of the powerful senator and against his critics.
Linda Daschle's lobbying has long been a source of potential conflict of interest issues. Her firm's clients include American Airlines, a recent recipient of billions in taxpayer funds to keep the company in business. Another client, L-3 International, a manufacturer of baggage screening equipment, won a lucrative contract from the Federal Aviation Administration in 2000. Mrs. Daschle had been an official with the FAA before joining the lobbying firm of Baker, Donelson, Bearman and Caldwell.
None of this makes it to the pages of the Argus Leader. Even the Daschles' refusal to make their income tax returns public didn't get a notice from the same publication that aggressively pursued Harriet Pressler a decade ago.
When Kranz was with the Mitchell Daily Republic in 1982, he wrote an opinion piece that praised Mr. Daschle for releasing his income tax returns and criticized his opponent Clint Roberts for not doing so. Kranz wrote, "We believe it is the obligation of a candidate to produce the financial health as represented in his federal income tax returns."
Kranz has yet to call for the release of the Daschles' returns that would reveal a combined income estimated at $6 million.
Copyright © 2003 Talon News -- All rights reserved.
How shocking! Corruption in the defense acquisition community. This criminal bitch is just the tip of the iceberg. Let's hope this is a trend, and few more get theirs. The extent to which taxpayer dollars are wasted on biased contract awards with absolutely no accountability is sickening.