Southwest gave free training to FAA Manager

 

 

By Alan Levin, USA TODAY

May 8, 2008

 

 

WASHINGTON — The manager of the federal office that oversees Southwest Airlines accepted thousands of dollars in free pilot training from the carrier under an arrangement that violates rules of conduct, the Federal Aviation Administration said Wednesday.

 

The training program had been approved by regional officials and had been in place for years. The FAA has halted the program because it violates its rules, according to spokeswoman Diane Spitalieri. The FAA would not comment specifically on the supervisor’s training because the matter is “under investigation,” Spitalieri said.

 

FAA manager Bobby Hedlund, who was promoted last year to head the Southwest office, received months of training in 2005 that qualified him to fly the Boeing 737, according to recent testimony before Congress from three current and former FAA officials. Southwest received a proposed $10.2 million fine in March for safety violations.

 

FAA inspectors often receive training to stay abreast of changing technology and airline operations, but the training is mostly done at the FAA’s expense. The free training highlights the continuing cozy relationship between Southwest and some of the government officials who oversee it, said Robert Naccache, who worked in the Southwest office until he retired last year.

 

“This is the most flagrant conflict of interest that I have ever witnessed in my 20-year career in the federal government,” Naccache said during a hearing last month.

 

His testimony was buttressed by Michael Mills, the FAA’s former Southwest manager, and Bobby Boutris, one of two federal whistle-blowers who first raised concerns about Southwest.

 

The training Hedlund received would cost a private citizen $15,000 or more, according to the officials and flight schools. It also would enhance a résumé, opening doors for employment at airlines or other private aviation firms. The FAA officials who testified at the hearing called the arrangement a conflict of interest.

 

The FAA and Southwest have been heavily criticized since a House Transportation Committee hearing April 3 revealed safety breakdowns and attempted retribution against inspectors who enforced the rules.

 

Hedlund did not return several phone calls seeking comment.

 

Southwest confirmed that Hedlund had attended courses at the airline but characterized the training as part of his routine duties. “We certainly don’t agree” that there are any ethical questions with the training, airline spokeswoman Beth Harbin said.

 

Internal Boeing Documents Support Whistleblower’s Allegations

FOR IMMEDIATE RELEASE
Contact Nick Schwellenbach, 202-347-1122

Internal Boeing Documents Support Whistleblower’s Allegations:
Aircraft Quality Control Problems Cited

Washington, D.C. – Internal Boeing documents obtained by the Project On Government Oversight show that the allegations of a former Boeing quality control inspector facing criminal charges have merit.  Quality control problems at Boeing increase the likelihood that defective aircraft parts end up on planes and flaws in the manufacturing of planes remain uncorrected.  This can potentially threaten public safety and drive up the cost of aircraft maintenance. These documents are linked at the bottom of this release.

Gerald Eastman, the former Boeing inspector, is facing a second trial of criminal charges for disclosing Boeing information to the press.  His first trial last month resulted in a mistrial when jurors could not agree on whether Eastman committed “computer trespass.”  Mr. Eastman claims that his involvement with the press stemmed from the lack of corrective actions taken by Boeing and the government in response to his disclosures of wrongdoing to them.

An internal Boeing memo sent to Boeing employees in October 2000 stated that misuse of “production stamps” or “roller-stamping” can result in negative consequences for the company and the individual misusing their stamp.  Roller-stamping is the misuse of production stamps to stamp work on critical parts and assemblies as complete and fully inspected when there has only been a cursory inspection, if one at all, of the part or assembly in question.  Eastman’s central claim is that he had perceived widespread “roller-stamping” and Boeing did little to curtail the practice. 

“These documents show that Eastman clearly had a reasonable basis for his belief roller-stamping was occurring,” according to Nick Schwellenbach, POGO investigator.  “It’s one thing to break company policy on releasing documents and getting fired, it’s another matter to file criminal charges.  Who do the prosecutors work for?”

The Boeing memo came months after the Federal Aviation Agency conducted a special technical audit of Boeing that concluded that there were systemic quality control problems.  The 2000 FAA special technical audit found “in some cases, manufacturing planning was not adequate, requirements were not followed, inspections were not specific, or personnel were not knowledgeable about requirements.”  Thus, “parts, assemblies, and installations are released through the system that do not conform” to approved designs.  Also, in 2000, the FAA proposed “a record $1.24 million in civil penalties against Boeing for inadequate supplier oversight and for failing to quickly report cracked parts on two older jetliners,” according to a news report (James Wallace, “FAA Audit Rips Boeing Over 100 Production, Design Problems Detailed; Company Plans Corrective Action,” Seattle Post-Intelligencer, August 11, 2000.). 

Years later, roller-stamping was still occurring when Eastman acted on his concerns.

Boeing certainly was aware of the practice because a Boeing document dated January 2004, states that, “There appears to be a systemic issue within BCA [Boeing Commercial Aircraft] involving parallel process breakdowns of mechanics and inspectors involved in assembling and inspecting aircraft, assemblies and parts.”  The 2004 document also states that the FAA examined 55 issues at Boeing between 2002 and 2003 and found that “24% of these issues have involved instances where the mechanic and inspector created and accepted nonconforming conditions”—i.e. roller-stamping.

In further support of Eastman’s claims, other Boeing employees became whistleblowers when they reported that Boeing supplier Ducommun was regularly supplying non-conforming parts to Boeing, according to the whistleblowers’ False Claims Act lawsuit obtained by POGO.  Now-former Boeing employees Taylor Smith, Jeannine Prewitt and James Ailes were then retaliated against by management because Boeing allegedly did not want to deal with the repercussions of their findings. 

###

For additional information:

Boeing Commercial Airplane Group memorandum, “Use of personal stamps in our production system,” October 31, 2000. Link: http://pogoarchives.org/m/tr/boeing-stamps-20001031.pdf

Federal Aviation Administration, “Special Technical Audit of Boeing Commercial Airplane Group,” December 1, 1999, through February 11, 2000. Link: http://pogoarchives.org/m/tr/faa-boeing-audit-20000211.pdf

Boeing Airplane Program Systemic Issues Chartered Team 1, “Investigation of ‘Dual Failures,’” January 2004. Link: http://pogoarchives.org/m/tr/dual-failures-report-20040122.pdf

United States of America ex rel Taylor Smith, Jeannine Prewitt and James Ailes vs. The Boeing Company and Ducommun, Inc., Federal District Court of Kansas. Filed on March 11, 2005.  Link: http://pogoarchives.org/m/tr/boeing-second-amended-complaint.pdf

Founded in 1981, the Project On Government Oversight is an independent nonprofit which investigates and exposes corruption and other misconduct in order to achieve a more accountable federal government.

 

OSC Shut down High Profile Probe of Siegelman Case

Special Counsel Shut Down Probe of Siegelman Case Last Year
    By Ben Evans
    The Associated Press

    Wednesday 07 May 2008

    Washington – The U.S. Office of Special Counsel last year shut down a previously undisclosed investigation into the federal prosecution of former Alabama Gov. Don Siegelman, according to an internal memo made public Wednesday.

    The investigation was being conducted by a task force formed at the agency a year ago to pursue high-profile political investigations in Washington, most notably whether the White House played politics in firing U.S. attorneys. It began gathering information on the Siegelman case in September and was planning to request documents from the Justice Department in October before Special Counsel Scott Bloch ordered the case closed, according to the Jan. 18 draft memo, made public by the Project on Government Oversight, a watchdog group.

    The investigation was one of many that the task force had taken up, and the memo shows that Bloch frequently differed with investigators about which cases to pursue.

    For example, he asked the task force to broaden its investigations into the fired prosecutors and into whether federal agencies received political briefings from the White House to boost GOP electoral fortunes. But he shut down an investigation into whether the Justice Department was hinging its hiring decisions on job applicants’ political affiliations.

    An attorney for Bloch, who himself is under a federal investigation, declined comment. But a person familiar with the origins of the POGO draft document said the decision to not pursue Siegelman or other cases stemmed mostly from a shortage of time and resources. The person spoke on condition of anonymity because of the ongoing investigation.

    Siegelman, a Democrat, said the memo suggests further political interference in his case and reiterated his call for the Justice Department to appoint a special prosecutor to take up the matter.

    ”The question is who told them to shut it down,” Siegelman said Wednesday when told of the memo. “Why would you start an investigation and let it proceed and then shut it down? The logical conclusion is that somebody intervened and told them to shut down the investigation.”

    Siegelman has long claimed that Republicans engineered his prosecution on bribery and other corruption charges to kill his chances for re-election, a claim repeatedly denied by federal prosecutors. His attorneys requested earlier this year that the Justice Department appoint a special prosecutor to investigate whether White House appointees in Washington, including former Bush adviser Karl Rove, influenced the case. Rove also has denied any involvement.

    The Special Counsel’s office is an independent agency charged with investigating unlawful political activity by government employees and ensuring that government whistle-blowers are not subjected to reprisals.

    The January memo is a summary of the task force’s activities and recommendations since it was formed in May 2007. It says investigators expressed concerns about closing the Siegelman investigation before completing it. But the task force was “directed to not further investigate this case and to wait for further instructions.”

    The memo says the task force still considered the case open and was requesting authorization to continue.

    ”I’m stunned by all this,” said Vince Kilborn, one of the former governor’s attorneys. “If an ongoing government investigation was shut down, I would say it’s potential obstruction of justice.”

    FBI agents raided the office and Bloch’s home this week in an investigation into whether he destroyed evidence potentially showing he retaliated against staffers who opposed his policies.

    Siegelman, who served one term as governor after being elected in 1998, was convicted in 2006 on bribery and other charges and sentenced to more than seven years in prison. He was recently released on bond pending appeal.

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    Associated Press writer Lara Jakes Jordan contributed to this report.