Source: AFP
The U.S. Justice Department is considering a deal with Boeing that would see the aerospace giant avoid criminal prosecution but may appoint a federal watchdog to oversee the company’s progress on safety improvements, the New York Times reported Friday.
People familiar with the discussions told the newspaper that the terms of the potential alternative settlement, known as a deferred prosecution agreement, or DPA, are still subject to change.
The Department of Justice (DOJ) is determining next steps after concluding in May that Boeing could be prosecuted for violating a criminal settlement following two deadly 737 MAX crashes in 2018 and 2019 that claimed a combined 346 lives.
But the Times, citing sources familiar with the discussions, said that after substantial internal discussion, Justice officials “appear to have concluded that prosecuting Boeing would be too legally risky.”
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Officials also reportedly believe appointing a watchdog would be “a faster and more efficient way” to ensure improvements are made to safety and quality control, the newspaper said.
Last month, the DOJ told the judge in the case that it would issue its decision no later than July 7.
The troubled plane maker had disputed the department’s review conclusions in mid-June, but acknowledged the seriousness of the safety crisis, and CEO Dave Calhoun told members of Congress that Boeing was “taking action and making progress.”
In January 2021, Justice announced an initial DPA in which Boeing agreed to pay $2.5 billion to settle fraud charges related to the certification of the 737 MAX.
However, since early 2023, the manufacturer has faced multiple production and quality control problems on its commercial jets, as well as in-flight incidents, including in January when a panel known as a door plug flew off an Alaska Airlines 737 Max 9.
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The Justice Department says Boeing’s violation of several provisions of the original agreement, including measures requiring it to strengthen its internal controls to detect and prevent fraud, opened the company to prosecution.
The families of the crash victims have called for criminal prosecution of Boeing and its executives and are seeking nearly $25 billion in fines.
A new DPA would allow the US government to resolve Boeing’s violations without trial.
This could serve as a victory for Boeing, a company considered critical to the US aviation industry as well as national security.
Such lawsuits have previously forced the companies to file for bankruptcy, the Times reported, and a conviction could potentially prevent Boeing from receiving government contracts — an important part of its business.
Boeing’s defense, space and security sector generated about $25 billion in 2023, or nearly a third of the company’s sales.
Source: AFP