Feds sue Lockheed Martin for kickbacks & fraud in Hanford nuclear site clean-up

Contractors concerned in a multibillion decontamination effort at the infamous Hanford nuclear site have been accused of defrauding US taxpayers, in response to a lawsuit towards Mission Support Alliance and Lockheed Martin.

MSA has a 10-year, $3.2 billion contract with the Department of Energy (DOE) to assist the decontamination effort on the decommissioned nuclear manufacturing complicated often called the Hanford Site. Allowed to select subcontractors for the nation’s largest and costliest environmental cleanup at its personal discretion, MSA abused its authority and awarded “improper favorable treatment” for kickbacks, the Justice Department claimed this week.

The lawsuit alleges that Lockheed Martin Corporation (LMC) and Lockheed Martin Services Inc. (LMSI) paid greater than $1 million to executives of MSA – which was conveniently co-owned by one other Lockheed subsidiary on the time – in order to safe a $232 million subcontract to offer administration and know-how assist on the Washington state nuclear site from 2010-2016.

The providers had been supplied at “inflated rates” and in some circumstances the DOE was even billed twice, by each MSA and Lockheed, for the identical work. In addition, the swimsuit accuses Jorge Francisco Armijo, who served as each the Vice President of LMC and President of MSA, of abusing his authority for monetary achieve by his concurrently held posts.

“Where Congress has allotted cash for particular functions, we is not going to tolerate illegal conduct by contractors who search to reinforce their income on the expense of taxpayers,” stated Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.

Lockheed instantly denied the allegations of being concerned in the corruption scheme, rejecting any notion that the “corporation or its executives engaged in any wrongdoing.” MSA additionally brushed apart the accusations, claiming that the corporate “stands behind” their staff.

The 586-square-mile former nuclear analysis facility was used to provide plutonium for the nuclear bomb in the Manhattan Project. After over 4 many years of nuclear gasoline manufacturing, the site was closed down in 1987, requiring an in depth clean-up of stable and liquid wastes left from the weapons manufacturing processes.