Defense Contractor Agrees to Multi-Million Dollar Fine

RaytheonThe defense giant and weapons manufacture Raytheon has reached an agreement with the State Department to pay millions in fines for violating US arms export control laws. Reuters reports that the $8 million fine will resolves hundreds of violations that the State Department characterized as “numerous violations demonstrated a recurring, corporate-wide weakness” in maintaining effective compliance controls:

Under the terms of the agreement, Raytheon neither admitted nor denied the allegations. However, the company voluntarily reported many — if not most — of the alleged violations to the government.

Half of the fine will be suspended on the condition that Raytheon will use the money for government-approved remedial compliance measures, including increased training and oversight. The company also agreed to hire an independent special compliance official to oversee the four-year consent decree.

Raytheon, which prides itself on generating more revenues overseas than its rivals, expects international sales to account for 27 percent to 29 percent of its total revenue in 2013.

The company said in a statement it would continue to work closely with the State Department “to achieve its goal of full compliance and industry-leading practices.”

The department said it would not debar Raytheon from further exports since the company voluntarily disclosed nearly all the violations covered by the settlement over the past decade.

Read more here.


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