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Raytheon fined $8 million for hundreds of arms component export violations

Special to WorldTribune.com

WASHINGTON — A leading U.S. military contractor for the Middle East
has been fined for repeated violations of arms export laws.

Raytheon, a missile supplier to U.S. allies in the Middle East, has been
fined $8 million for hundreds of violations of the Arms
Export Control Act and the International Traffic in Arms Regulations.
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Officials said Raytheon transferred unauthorized components of missile
systems to foreign militaries, including those in the Middle East.

“Over the course of many years, Raytheon business units have disclosed
to the department hundreds of ITAR violations, largely consisting of
failures to properly manage department-authorized agreements and temporary
import and export authorizations,” the State Department said.

Officials said the State Department determined that Raytheon failed to
track and document exports to foreign clients. They said State agreed to
forgive $4 million of the fine on condition that Raytheon uses the money to
bolster export controls.

“In addition, an external special compliance official will be engaged by
Raytheon to oversee the consent agreement, which will also require the
company to conduct two external audits of its
compliance program during the agreement term as well as implement additional
compliance measures,” the State Department said.

Over the last three years, Raytheon has been producing and delivering
the AIM-9X air-to-air missile to Arab and Muslim allies of the United
States. The 9X, deemed the most advanced weapon in the U.S. Air Force, has
been ordered by such countries as Morocco, Saudi Arabia and Turkey.

Officials said State determined that Raytheon cooperated in the
investigation, conducted by the Office of Defense Trade Controls Compliance.
They said the company repeatedly discovered and reported violations of ITAR
to the U.S. government. In 2003, Raytheon admitted to sending unauthorized
communications components to Canada and Pakistan.

“For these reasons, the department has determined that an administrative
debarment of Raytheon is not appropriate at this time,” State said.

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