| WASHINGTON
- September 4 - Emails show that Boeing executive Darleen Druyun may have acted inappropriately in her previous role as an Air Force acquisition official, beyond what the Department of Defense (DOD) has confirmed they are investigating. The Project On Government Oversight has sent a letter to the DOD’s Inspector General urging that the inquiry be expanded.
In January, 2003, Ms. Druyun was appointed Deputy General Manager for Missile Defense Systems at Boeing on the heels of her active involvement in promoting the Boeing tanker leasing deal. “Ms. Druyun’s Boeing appointment shows how government officials seeking lucrative positions at defense contractors abuse the public trust,” said Danielle Brian, Executive Director.
One email shows that Ms. Druyun sought to hide from Congress how the Boeing tanker leasing deal violated an arcane provision known as the Anti-Deficiency Act. An October 17, 2001 email says “Congressional acceptance of the waiver of the anti-deficiency statutes is questionable but ‘nothing ventured, nothing gained.’ Ms. Druyun instructed AQQ [Acquisition] to send the (sic) Steve Cortese only. The Air Force is to make no other distribution on the Hill.” Steve Cortese was former majority staff director of the Senate Appropriations Committee working under Senator Ted Stevens, the top recipient of Boeing campaign contributions in Congress in 2001, according to Defense Week. Pentagon insiders have told POGO that the Boeing leasing deal would not comply with the Anti-Deficiency Act which prohibits agencies from incurring obligations for sums of money that have not been appropriated by Congress. This leasing deal violates the Anti-Deficiency Act and Congress must formally waive these restrictions in cases like the Boeing deal. So far Congress has not done so.
Boeing has claimed that Ms. Druyun is employed by a different division than that with which she worked as an Air Force official and thus did not violate conflict of interest statutes. Under the Procurement Integrity Act, former Defense officials must “not accept compensation from the concerned contractor on a $10 million DOD contract on which you performed designated services” with the notable exception that “You may accept compensation from any division or affiliate of the contractor that does not produce the same or similar products or services as the entity responsible for the contract.” Ms. Druyun works for Boeing’s Integrated Defense Systems which includes programs responsible for the 767 tanker program as well as the C-17 airlifter program. (Ms. Druyun also promoted a failed attempt to give Boeing $200 million annually in subsidies for the military C-17 airlifter program, see POGO Alert The Pentagon's Self-Proclaimed ‘Godmother of the C-17’”. A letter sent today by POGO, urges the DOD Inspector General to review this matter (text of letter below).
Emails Concerning Darleen Druyun’s Role in Boeing Tanker Leasing Deal:
October 12, 2001 Email from Gerald Daniels (Former President and CEO, Military Aircraft and Missile Systems)
“Good meetings with the USAF (Darleen and Roche) and members of Congress yesterday and a follow up strategy session with Phi and Rudyl….USAF wants us to support their language for an operating lease. Darleen will make the actual contract favorable and is willing to go to the fainacial (sic)market with us to stress the low risk involved in such a lease….”
October 17, 2001 Email from Jerry Fergeson
“A meeting finally occurred late yesterday with Darleen Druyun to discuss the revised language and in the supporting papers developed on Monday and Tuesday. The language was accepted as written but with one concern. Congressional acceptance of the waiver of the anti-deficiency statutes is questionable but ‘nothing ventured, nothing gained.’ Ms. Druyun instructed AQQ to send the Steve Cortese only. The Air Force is to make no other distribution on the Hill….Ms. Druyun did direct Gen Essex and Lt. Col Pollock to take us up on our offer to meet someone from the capital market (i.e. investment banker).” [Note: Steve Cortese is former majority staff director of the Senate Appropriations Committee.]
December 19, 2001 Email from Andrew Ellis (Vice President, Washington DC Operations, The Boeing Company)
“in a one-on-one afterwards, darleen and I briefly discussed how vulnerable the program would be if it takes 10 mos. To get to contract signature. two other points in the follow-on meeting: ..(sh)e is going to have a difficult time working this through air force bureaucracy….”
December 13, 2001 Email from Gerald Daniels (Former President and CEO, Military Aircraft and Missile Systems)
“Continuous dialogue today with Darleen and her new boss, Marv Sambur. Randy Simons and Bob Gower will meet tomorrow morning with Darleen and her financial analysts to look at a family of solutions…”
April 01, 2002 Email from Andrew Ellis (Vice President, Washington DC Operations, The Boeing Company)
April 27, 2002 Email from Robert Gordon (Vice President, Boeing Capital Corporation)
September 4, 2003
Mr. Kevin Flanagan
Inspector General
Department of Defense
400 Army Navy Dr.
Arlington, VA 22202-4704
via facsimile (703) 604-8310
Dear Mr. Flanagan,
I am writing to request that you expand your inquiry into former Air Force acquisition chief Darleen Druyan’s conduct with regard to her then-future employer Boeing. While I understand you are reviewing whether she violated the law by providing Boeing with proprietary information from a competitor on the day the Boeing tanker lease deal was announced, evidence of her extraordinarily close communications with Boeing prior to the decision suggests that you consider her conduct for the months leading up to this decision, including:
• On October 12, 2001 (six months before the April 1, 2002 Air Force decision to award the tanker deal to Boeing) Boeing executives report, “Darleen will make the actual contract favorable and is willing to go to the fainacial (sic) market with us to stress the low risk involved in such a lease...”
• According to an October 17, 2001 email between Boeing executives, then-Air Force official Druyun instructed her Air Force colleagues to inform only former Senate Appropriations Chief of Staff Steve Cortese of its negotiations with Boeing regarding the tanker deal. (In 2001, Senate Appropriations Chair Ted Stevens was the top recipient of Boeing campaign contributions in the Senate.) According to the attached email between Boeing officials memorializing the meeting with Druyan, she was concerned that the Congress would not support the lease deal because it would violate the Anti-Deficiency Act, which prohibits agencies from incurring obligations for sums of money that have not been appropriated by Congress.
• According to the October 17 email, “Ms Druyun did direct Gen Essex and Lt Col Pollock to take us [Boeing] up on our offer to meet with someone from the capital market (i.e., investment banker).”
• A December 19, 2001 email suggests that the Boeing tanker deal is single-handedly being shepherded through the bureaucracy by Druyun herself: “(Sh)e is going to have a difficult time working this through air force bureaucracy.”
• Finally, it appears Boeing’s claims that Druyan is employed by a different division of Boeing than that with which she worked as an Air Force official, are not clear cut. The Boeing press release announcing Druyan’s hiring states, “Darleen Druyun... will report directly to James Evatt, senior vice president and general manager of Boeing Missile Defense Systems, one of nine business units within Boeing Integrated Defense Systems.” According to the Boeing website, the 767 Tanker Program, as well as all the Air Force Systems projects, including the C-17 Globemaster are also run by Boeing Integrated Defense Systems. While an Air Force acquisition official, Druyan called herself the “Godmother of the C-17.” I respectfully suggest that you review whether this is in violation of the Procurement Integrity Act.
I believe this behavior merits immediate scrutiny. Thank you for your attention to this matter.
Sincerely,
Danielle Brian
Executive Director
###
|
