Boeing chiefs in trouble with US department of Justice over 737 Max probe

Last week Citizens for Responsibility and Ethics in Washington filed a complaint with the Pentagon inspector general about acting US Defence Secretary Patrick Shanahan for alleged favouritism to his ex-employer, Boeing.

Mr Shanahan is accused of frequently praising Boeing in meetings about government contracts and acquisitions.

Mr Shanahan, who denies any wrongdoing, spent 30 years at Boeing.

The Defence Department’s inspector general will look into the matter following a complaint from a watchdog group.

Mr Shanahan rose through the ranks to become a senior executive at the world’s biggest planemaker.

The criminal investigation, which is in its early stages, began after the October 2018 crash of a 737 Max aircraft operated by Lion Air in Indonesia, the sources said. Transportation Secretary Elaine Chao on Tuesday asked the agency’s inspector general to investigate the Max certification.


Criminal investigators have sought information from Boeing on safety and certification procedures, including training manuals for pilots, along with how the company marketed the new aircraft, the sources said.


It’s not yet clear what possible criminal laws could be at issue in the probe. Among the things the investigators are looking into is the process by which Boeing itself certified the plane as safe, and the data it presented the FAA about that self-certification, the sources said.

The FBI Seattle office and Justice Department’s criminal division in Washington are leading the investigation.


A Boeing (BA) spokesperson referred to a statement the company released earlier in the week, which indicated it “does not respond to or comment on questions concerning legal matters, whether internal, litigation, or governmental inquiries.”

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The safety of the 737 Max has been called into question after it was involved in two fatal crashes in less than five months.

Both the crash last October involving the Lion Air jet and the crash last week involving an Ethiopian Airlines jet resulted in the deaths of everyone aboard.
The planes were grounded for an indefinite period worldwide after the Ethiopian Airlines crash.

Boeing is still building the planes, but it said last week that it would temporarily stop delivering them to airlines while it determines what caused the two crashes.
The FAA and others have said data shows similarities between the Lion Air and Ethiopian crashes.

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The FAA also said Wednesday that Boeing has developed a software patch and pilot training program to address issues with the Max that were identified in the Lion Air crash.

Democratic Senator Elizabeth Warren, a member of the panel, said she had led calls for the inquiry.

She tweeted on Wednesday: “Government officials should work for the people – not big defence contractors.”

The inquiry casts a shadow over Mr Shanahan as the White House considers whether to formally nominate him to fill the defence secretary post left vacant by Jim Mattis, who stepped down in December.

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