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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Lockheed Martin

Aircraft Sale to Egypt (Foreign Corrupt Practices Act Violations)

Date: 08/01/1995 (Date of Guilty Pleas - approximate)

Misconduct Type: Import/Export

Enforcement Agency: Defense – General

Contracting Party: International

Court Type: Criminal

Amount: $24,800,200

Disposition: Pleaded Guilty

Synopsis: Lockheed agreed to pay criminal and civil fines after pleading guilty to violating the Foreign Corrupt Practices Act, 5 U.S.C. §§ 78dd-1, et seq., by paying a consultant from a funding source that disallowed it. “The case focused on the 1989 contract between Lockheed and Egypt calling for the sale of three C-130 aircraft for approximately $79 million. The investigation uncovered payments by Lockheed to its Egyptian consultant, Dr. Leila Takla, in exchange for her assistance in making the sale. The contract, which was funded by U.S. taxpayer money through the Defense Security Assistance Agency (DSAA) Foreign Military Financing (FMF) program, required Lockheed to certify that no consultant fees were being paid out of FMF grant money.”