FORMER TRW<TRW> EMPLOYEE SAYS FIRM WAS UNETHICAL
A former TRW Inc controller told a
Congressional hearing that the company had acted unethically in
its defense contracts with the government.
    "It is my contention that the company called TRW is not ever
vigilant and highly ethical as a defense contractor. TRW only
pretends to be an honest citizen when that scheme best fits
their financial interests," Larry Eagleye said in testimony at a
House Oversight subcommittee hearing.
    Eagleye was a controller at TRW's compressor components
division in Cleveland.
    Subcommittee chairman John Dingell, D-Mich, said he did not
understand why the Defense Department had taken no action
against TRW even though it admitted in the 1984 report that it
had substantially overcharged the government for military
aircraft parts.
    "In 1984, TRW officials admitted to the Defense Department
Inspector General that they had evidence of two sets of books
and other problems in one of the company's divisions in
Cleveland and that there had been substantial overcharging of
the federal government on various military aircraft parts,"
Dingell said.
    "For example, by falsifying its books and records, TRW
inflated the price of a military engine blade by two to three
times higher than the price of a virtually identical commercial
engine blade," Dingell said in a statement.
    Eagleye and two other former employees filed a suit against
TRW last year charging the company with overcharging the
government. The Justice Department later joined the suit.
    "While employed by TRW and while under investigation by TRW,
I disclosed to TRW's legal department and higher management,
many flagrant and obvious violations of law, company policy and
ethical conduct. None of this evidence was included in TRW's
(1984) report to the government," he said.
   
 Reuter
