Panel won’t seek Boeing criminal probe

A Pentagon task force investigating certain defense contracts won by Boeing Co. has concluded that there were some anomalies but will not call for a criminal investigation, the Los Angeles Times reported on Monday.

The newspaper, citing government sources, said a special panel will say it found no additional wrongdoing, but it will ask the Pentagon’s inspector general to review certain contracts.

Boeing, a commercial jet maker and defense contractor, has been working to restore its tarnished ethics image since Darleen Druyun, once the Air Force’s No. 2 acquisition official, admitted to improperly steering billions of dollars in contracts to the company before it hired her.

On Monday, Pentagon officials will brief Congress on the results of an internal audit of all contracts over which Druyun had any influence since taking over as the Air Force’s deputy acquisition chief in 1993.

Also this week, the Government Accountability Office is due to rule on protests, sparked by Druyun’s confession, against two Pentagon contracts.

The GAO is likely to agree with Boeing that the two contracts were awarded properly, the Los Angeles Times said.

The article said the GAO is expected to reject claims by Lockheed Martin Corp. that a $2.5 billion contract to develop small-diameter bombs was improperly awarded to Boeing.

The GAO could also reject a second Lockheed protest of a Boeing award to upgrade cockpit electronics on C-130 cargo aircraft, the newspaper said, citing sources.