ST. LOUIS (Reuters) - Hughes Electronics Corp. and Boeing Co.'s Boeing Satellite Systems unit said Wednesday they agreed to a $32 million civil penalty with the U.S. Department of State, arising out of allegations that the companies might have illegally shared sensitive space technology with China in the 1990s.
The penalty includes the payment of $20 million in cash over seven years, $8 million to strengthen export compliance programs and $4 million already credited for past expenses on export program enhancements, the companies said. Hughes and the Boeing unit will appoint a third party to monitor export compliance.
"Hughes Electronics Corp. and Boeing Satellite Systems acknowledge the nature and seriousness of the offenses charged by the Department of State, including the harm such offenses could cause to the security and foreign policy interests of the United States," said Jack Shaw, Hughes's chief executive, and Dave Ryan, Boeing Satellite's vice president and general manager, in a joint statement.
The companies said they regretted not obtaining necessary licenses. The government's charges related primarily to the Boeing unit's involvement in reviews of two failed launches of commercial communications satellites on Chinese rockets in 1995 and 1996, the companies said.
***********
The penalty includes the payment of $20 million in cash over seven years, $8 million to strengthen export compliance programs and $4 million already credited for past expenses on export program enhancements, the companies said. Hughes and the Boeing unit will appoint a third party to monitor export compliance.
"Hughes Electronics Corp. and Boeing Satellite Systems acknowledge the nature and seriousness of the offenses charged by the Department of State, including the harm such offenses could cause to the security and foreign policy interests of the United States," said Jack Shaw, Hughes's chief executive, and Dave Ryan, Boeing Satellite's vice president and general manager, in a joint statement.
The companies said they regretted not obtaining necessary licenses. The government's charges related primarily to the Boeing unit's involvement in reviews of two failed launches of commercial communications satellites on Chinese rockets in 1995 and 1996, the companies said.
***********



Comment