Pentagon halts Boeing (tanker) deal

[Newsjock]

http://money.cnn.com/2003/12/02/news/companies/boeing_tanker.reut/

WASHINGTON (Reuters) - The Pentagon has told Congress it will postpone action on $18 billion in contracts for 100 Boeing Co. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said Tuesday.

Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers.

Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business.

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[damnraddem]

1. The tankerscam comes apart.

Even when they thought they were getting the deal, Boeing was announcing major layoffs.