Boeing review finds no widespread ethics violations

A review commissioned by Boeing has concluded that the company has at times not properly followed its own rules when hiring current and former federal executives. But the review did not find evidence of widespread misconduct at the Defense's Department second-largest contractor.

Boeing hired former Sen. Warren Rudman, R-N.H., to head an outside evaluation of its hiring practices after the company fired two top executives last fall for engaging in unethical hiring practices.

Darleen Druyun, a former top Air Force procurement executive, was fired after less than a year as senior executive at the aerospace giant for not disclosing that she was negotiating a job with Boeing while overseeing billions of dollars in Air Force contracts with the firm. Michael Sears, the company's chief financial officer, who talked with Druyun about the job, also was ousted last fall.

The Defense Department inspector general is reviewing contracts Druyun oversaw, including a multibillion-dollar deal to lease tanker aircraft from Boeing. That review is not slated for completion until at least May 2004. Also, the Justice Department is determining whether Druyun and Sears might have obstructed justice in concealing their contacts.

The review stated: "It would be a mistake to conclude that the Darleen Druyun incident reflects a lack of knowledge or concern regarding the company's obligations." Nonetheless, the review, which included interviews with dozens of former federal officials now working for Boeing, offered several recommendations for ensuring conflict-of-interest rules are not violated.

Among the suggestions: establishing a central system at Boeing for hiring current and former government employees who would monitor potential conflicts of interest; improving record-keeping and monitoring of former federal workers' compliance with ethics rules once they join Boeing; improving corporate training and knowledge of rules for hiring federal workers; and conducting an audit of hiring practices at least every two years.

"There is no magic bullet to ensure that everyone follows established policies and procedures in hiring government employees, but additional training, safeguards and centralized oversight and control can substantially reduce the risk that mistakes will be made in the hiring process," the report noted.