U.S.: Northrop hid accounting flaws

[UpInArms]

http://money.cnn.com/2004/04/19/news/fortune500/northrop.reut/

NEW YORK (Reuters) - U.S. defense contractor Northrop Grumman hid major accounting irregularities in the late 1980s in order to remain eligible to work for the Pentagon, according to a published report Monday.

The accounting problems -- which occurred through the end of the Cold War -- are revealed in internal documents reviewed by the Wall Street Journal, but that have not been made public.

The documents are part of a U.S. government lawsuit against Northrop that could seek hundreds of millions of dollars in penalties from the Los Angeles-based firm, the Journal reported.

<snip>

The Journal said a federal judge in Chicago is about to unseal some of the files. The story also quotes a 1986 memo sent to 37 managers that said when discussing accounting faults: "We can't tell the truth."

...more...

[74dodgedart]

1. These are the people we are giving tax cuts to...

The liars and cheaters at Shell, Northrop, Mutual Fund managers, Donald Trump, etc.

Why not reward the people who actually work for a living ?

[tabasco]

3. There's no such thing as a patriotic corporation.

They only exist to obtain wealth. Corporations do not care how many jobs they create. People are like parts of a machine to corporations. The power of corporations has created a plutocracy of CEOs in America. The military corporations have pushed us to war. It is time we restore democracy in America and give the power back to the People !

[TahitiNut]

4. "The love of money is the root of all evil."

A corporation is a creature whose sole raison d'etre is the "love of money." "Holding companies" are the most vile of the vile.

[74dodgedart]

6. I've been reading Grapes of Wraith..

It really seems applicable to current times. People at the bottom getting the shaft so those at the top can get rich. We are all becoming slaves to "the market".

[TahitiNut]

2. Compliance with Federal cost accounting regulations is nightmarish.

Sadly, the arcane regulations on contractors attain much of their surrealism due to the interests of contractors to "cook the books."

[bemildred]

5. That is true, they are beyond stupid.

[Judi Lynn]

7. So when the "major accounting irregularities" occured was the late '80's

That would have been on the elder _Bush's watch, right? Is there any chance Cheney was involved in this too? I'm sure I believe he would have been.

A quick look from google shows the elder _Bush got his secretary of the Army from Northrup Grumman:

President George W. Bush today announced his intention to nominate two individuals to serve in his administration:

The President intends to nominate James G. Roche of Maryland, to be Secretary of the Army. He currently serves as Secretary of the Air Force. Prior to returning to the Department of Defense in 2001, he served as Corporate Vice President and President of the Electric Sensors and Systems Sector of the Northrop Grumman Corporation where he served since 1984. Earlier, Roche served as Democratic Staff Director for the U.S. Senate Committee on Armed Services from 1983 to 1984 and served at the State Department as Principal Deputy Director of the Policy Planning Staff. He was a senior professional staff member of the Senate Select Committee on Intelligence from 1979 to 1981, and served as Assistant Director of the Office of Net Assessment in the Office of the Secretary of Defense from 1975 to 1979. Roche is a twenty-three year veteran of the U.S. Navy, received his bachelor's degree from the Illinois Institute of Technology, his master's degree from the U.S. Naval Postgraduate School and his doctorate from Harvard Business School.
(snip)

http://www.whitehouse.gov/news/releases/2003/05/20030507-8.html

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In July 2000, Carlyle Group bought Northrop Grumman's aerostructures business group in a deal valued at $1.2 billion. The business was renamed Vought Aircraft Industries and remains based in Dallas. On Aug. 20, Vought announced that it had been selected by Northrop Grumman to manufacture the wing for the Global Hawk unmanned reconnaissance system's air vehicle.
(snip)

http://www.americanfreepress.net/11_03_01/War_Is_Sell_-_Washington_s_Pow/war_is_sell_-_washington_s_pow.html

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I just don't have enough time to properly dumpster dive on this, but there's a whole lot to be learned, I'm CERTAIN.