Latest developments in the investigation into allegations of fraud and bribes paid by defense contractors and consultants to procurement officials in the Defense Department:
Committee considers ban on paymentsThe Senate Finance Committee briefly considered a proposal that would have allowed the government to suspend payments to defense contractors under investigation in the case. The panel took no action.
Consultant paid official's wife
VAMO Inc., a Virginia firm incorporated by William Galvin, a consultant to defense contractors, paid up to $50,000 in 1986 to Vicki Paisley, the wife of the Navy's then-procurement chief, Melvyn Paisley. Federal investigators have searched the offices of both Galvin and Paisley, who left government service in 1987 to become a defense consultant.
Renogotiations may be needed
In a television interview, Sen. John Warner, R-Va., a former Navy secretary, said that if a substantial number of contracts turn out to have been tainted, they will have to be renegotiated. "And that's a tough, tough problem, because those contracts are producing essential goods to our national defense today," Warner said.
Company wants to see affidavit
An attorney for United Technologies Corp. said he has asked U.S. District Judge John H. Pratt to allow the company to examine a government affidavit supporting a search warrant that the judge had issued. The warrant enabled FBI agents to search the Washington office of Eugene Tallia, a vice president for Washington operations of the company's Pratt & Whitney engine manufacturing unit. Company lawyers said they wanted to determine whether the search was proper.