B-121072, B-112109, APR. 3, 1957
Highlights
TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO A REQUEST DATED MARCH 4. AS YOU ARE AWARE. HAVE BEEN THE SUBJECT OF VARIOUS REPORTS AND EXTENDED CORRESPONDENCE OF OUR RESPECTIVE AGENCIES CONCERNING APPARENT IRREGULARITIES AND EXCESSIVE PAYMENTS. THESE MATTER ULTIMATELY WERE REFERRED TO THE ATTORNEY GENERAL FOR CONSIDERATION AND APPROPRIATE ACTION AND ARE NOW PENDING FINAL DETERMINATION AS TO THE PROPRIETY OF THE INITIATION OF SUITS IN BEHALF OF THE GOVERNMENT UNDER THE FALSE CLAIMS STATUTES. 31 U.S.C. 231-233. THERE ARE ALSO PENDING IN THE COURT OF CLAIMS.
B-121072, B-112109, APR. 3, 1957
TO THE SECRETARY OF THE AIR FORCE:
REFERENCE IS MADE TO A REQUEST DATED MARCH 4, 1957, FROM MR. SIDNEY C. SOLOMON, AIR FORCE RESIDENT AUDITOR, ADDRESSED TO OUR DETROIT REGIONAL MANAGER, COPY ATTACHED.
THE RESIDENT AUDITOR STATES THAT IN ORDER TO COMPLETE VARIOUS PROJECTS ASSIGNED TO HIS OFFICE RELATIVE TO GIBSON REFRIGERATOR COMPANY AND RAPID DESIGN SERVICES, INC., VARIOUS ITEMS OF INFORMATION MUST BE OBTAINED FROM THE GENERAL ACCOUNTING OFFICE WORK PAPERS AND REQUESTS THAT SUCH WORK PAPERS WITH THE DOCUMENTATION THEREOF (OR COPIES) BE FURNISHED AS ITEMIZED IN HIS LETTER.
GIBSON REFRIGERATOR COMPANY FURNISHED TOOLING UNDER A SUBCONTRACT TO WILLYS MOTORS, INC., FORMERLY KAISER MANUFACTURING CORPORATION, PRIME CONTRACTOR UNDER TERMINATED CONTRACT NO. AF 33/03S/-18481. RAPID DESIGN FURNISHED TOOLING AS A SUBCONTRACTOR TO GIBSON REFRIGERATOR COMPANY.
AS YOU ARE AWARE, THE WILLYS MOTORS AND RELATED CHASE AIRCRAFT MATTERS, INCLUDING MANY OF THE SUBCONTRACTS INVOLVED, HAVE BEEN THE SUBJECT OF VARIOUS REPORTS AND EXTENDED CORRESPONDENCE OF OUR RESPECTIVE AGENCIES CONCERNING APPARENT IRREGULARITIES AND EXCESSIVE PAYMENTS, AND POSSIBLY FRAUDULENT PRACTICES AND TRANSACTIONS IN THE PROCUREMENT OF SUCH TOOLING. THESE MATTER ULTIMATELY WERE REFERRED TO THE ATTORNEY GENERAL FOR CONSIDERATION AND APPROPRIATE ACTION AND ARE NOW PENDING FINAL DETERMINATION AS TO THE PROPRIETY OF THE INITIATION OF SUITS IN BEHALF OF THE GOVERNMENT UNDER THE FALSE CLAIMS STATUTES. 31 U.S.C. 231-233, 235. THERE ARE ALSO PENDING IN THE COURT OF CLAIMS, TWO SUITS FILED AGAINST THE GOVERNMENT BY THE PRIME CONTRACTORS.
UNDER SUCH CIRCUMSTANCES, THE SPECIFIC INFORMATION CONCERNING THE MATTERS UNDER CONSIDERATION MAY BE FURNISHED ONLY UPON ADVICE OF THE ATTORNEY GENERAL.