| http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2001/06/09/MN115342.DTL
Defense chiefs get exempted from rule Conflict-of-interest waived for former execs Patrick J. Sloyan, Newsday � Saturday, June 9, 2001 Washington -- Former defense company executives who now head the Navy and Air Force will be exempted from a federal law that prohibits them from dealing with their former employers for one year, according to aides to Defense Secretary Donald Rumsfeld. The aides said waivers of the federal conflict-of-interest statute will be issued for Navy Secretary Gordon England, who served as General Dynamics Corp. 's executive vice president, and Air Force Secretary James Roche, who was president of a Northrop-Grumman Corp. division that equips the service's B-2 Spirit stealth bombers and the new fighter-bomber, the F-22 Raptor. England and Roche will have a major say in U.S. weapons purchases from General Dynamics and Northrop-Grumman, as well as in the companies' defense research. The two contractors already get a combined $8 billion a year in Pentagon contracts. During their confirmation hearings, the nominees pledged to expand ship, aircraft and weapon programs that would benefit the two defense firms as well as employment in some of the states of members of the Senate's Armed Services Committee. Federal conflict-of-interest law calls for a "cooling off" period of one year for all new federal workers regarding contracts and other actions affecting previous employers. Fines, dismissal and other penalties could be imposed for federal employees who violate the law. Initially, Rumsfeld's aides said that England and Roche would not need a waiver from the law because it would not apply to them. In response to repeated questions, however, the aides said waivers would be necessary. Otherwise, the civilian leaders would be forced to recuse themselves from major Navy and Air Force programs, thus crippling their policy directions. The law allows a waiver to be granted only if the defense secretary finds an exemption is "in the best interest of the United States." A Rumsfeld spokeswoman, Air Force Lt. Col. Willete Carter, said the waivers will be part of the divestiture of defense industry investments required by the Senate Armed Services Committee. Both England and Roche are multimillionaires from salary and stock options from their companies. President Bush's nomination of former defense contractors to key Pentagon jobs has dismayed some career employees of the Defense Department who contend daily with substandard weapons and cost overruns by the defense industry. The Bush administration is considering tapping a Lockheed-Martin Corp. vice president, Albert Smith, as chief of acquisitions for the controversial missile defense program. Smith's company currently gets $19 billion a year from the Pentagon and is a leader in space technology. Last week, Bush named two other defense industry executives to Pentagon jobs. They are Michael Wynne, to be deputy undersecretary for acquisitions, and George Williams, to be assistant secretary of the Army for acquisitions. Wynne worked for General Dynamics and Lockheed-Martin before heading a software business that had Pentagon contracts. Williams was president of the Alabama defense contractor Colsa Corp. |
