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More Documents Show Darleen Druyun's Inappropriate Role in Boeing Leasing Deal

September 4, 2003 

 

Emails show that Boeing executive Darleen Druyun may have acted inappropriately in her previous role as an Air Force acquisition official, beyond what the Department of Defense (DOD) has confirmed they are investigating. The Project On Government Oversight has sent a letter to the DOD's Inspector General urging that the inquiry be expanded.

In January, 2003, Ms. Druyun was appointed Deputy General Manager for Missile Defense Systems at Boeing (see Boeing release) on the heels of her active involvement in promoting the Boeing tanker leasing deal. "Ms. Druyun's Boeing appointment shows how government officials seeking lucrative positions at defense contractors abuse the public trust," said Danielle Brian, Executive Director.

One email shows that Ms. Druyun sought to hide from Congress how the Boeing tanker leasing deal violated an arcane provision known as the Anti-Deficiency Act. An October 17, 2001 email says "Congressional acceptance of the waiver of the anti-deficiency statutes is questionable but 'nothing ventured, nothing gained.' Ms. Druyun instructed AQQ [Acquisition] to send the (sic) Steve Cortese only. The Air Force is to make no other distribution on the Hill." Steve Cortese was former majority staff director of the Senate Appropriations Committee working under Senator Ted Stevens, the top recipient of Boeing campaign contributions in Congress in 2001, according to Defense Week. Pentagon insiders have told POGO that the Boeing leasing deal would not comply with the Anti-Deficiency Act which prohibits agencies from incurring obligations for sums of money that have not been appropriated by Congress. This leasing deal violates the Anti-Deficiency Act and Congress must formally waive these restrictions in cases like the Boeing deal. So far Congress has not done so.

Boeing has claimed that Ms. Druyun is employed by a different division than that with which she worked as an Air Force official and thus did not violate conflict of interest statutes. Under the Procurement Integrity Act, former Defense officials must "not accept compensation from the concerned contractor on a $10 million DOD contract on which you performed designated services" with the notable exception that "You may accept compensation from any division or affiliate of the contractor that does not produce the same or similar products or services as the entity responsible for the contract." Ms. Druyun works for Boeing's Integrated Defense Systems which includes programs responsible for the 767 tanker program as well as the C-17 airlifter program. (Ms. Druyun also promoted a failed attempt to give Boeing $200 million annually in subsidies for the military C-17 airlifter program, see POGO Alert "The Pentagon's Self-Proclaimed 'Godmother of the C-17'.) A letter sent today by POGO, urges the DOD Inspector General to review this matter.

POGO investigates, exposes, and seeks to remedy systemic abuses of power, mismanagement, and subservience by the federal government to powerful special interests. Founded in 1981, POGO is a politically-independent, nonprofit watchdog that strives to promote a government that is accountable to the citizenry.

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Emails Concerning Darleen Druyun's Role in Boeing Tanker Leasing Deal

October 12, 2001 Email from Gerald Daniels (Former President and CEO, Military Aircraft and Missile Systems)

"Good meetings with the USAF (Darleen and Roche) and members of Congress yesterday and a follow up strategy session with Phi and Rudyl....USAF wants us to support their language for an operating lease. Darleen will make the actual contract favorable and is willing to go to the fainacial (sic)market with us to stress the low risk involved in such a lease...."

October 17, 2001 Email from Jerry Fergeson

"A meeting finally occurred late yesterday with Darleen Druyun to discuss the revised language and in the supporting papers developed on Monday and Tuesday. The language was accepted as written but with one concern. Congressional acceptance of the waiver of the anti-deficiency statutes is questionable but 'nothing ventured, nothing gained.' Ms. Druyun instructed AQQ to send the Steve Cortese only. The Air Force is to make no other distribution on the Hill....Ms. Druyun did direct Gen Essex and Lt. Col Pollock to take us up on our offer to meet someone from the capital market (i.e. investment banker)." [Note: Steve Cortese is former majority staff director of the Senate Appropriations Committee.]

December 19, 2001 Email from Andrew Ellis (Vice President, Washington DC Operations, The Boeing Company)

"in a one-on-one afterwards, darleen and I briefly discussed how vulnerable the program would be if it takes 10 mos. To get to contract signature. two other points in the follow-on meeting: ..(sh)e is going to have a difficult time working this through air force bureaucracy...."

December 13, 2001 Email from Gerald Daniels (Former President and CEO, Military Aircraft and Missile Systems)

"Continuous dialogue today with Darleen and her new boss, Marv Sambur. Randy Simons and Bob Gower will meet tomorrow morning with Darleen and her financial analysts to look at a family of solutions..."

April 01, 2002 Email from Andrew Ellis (Vice President, Washington DC Operations, The Boeing Company)

April 27, 2002 Email from Robert Gordon (Vice President, Boeing Capital Corporation)



Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO's investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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