Probe Clears Acting Defense Chief of Favoring Boeing While at Pentagon -- 2nd Update
26 April 2019 - 2:12AM
Dow Jones News
By Nancy A. Youssef and Gordon Lubold
The Defense Department Office of Inspector General has concluded
that evidence doesn't show that acting Defense Secretary Pat
Shanahan sought preferential treatment for his longtime former
employer, Boeing Co., while serving in government, removing a major
hurdle for his formal nomination to the post.
President Trump could nominate Mr. Shanahan within days to be
the permanent defense secretary, U.S. officials said, although they
stressed it remains unclear what Mr. Trump will do.
The Pentagon's inspector general initiated an investigation last
month after complaints that Mr. Shanahan, the former deputy defense
secretary, aided Boeing during meetings by promoting the company
and disparaging competitors. Mr. Shanahan became acting secretary
of defense in January following the abrupt departure of Jim Mattis,
who resigned as secretary over policy differences with Mr.
Trump.
A complaint against Mr. Shanahan was filed March 13 by an
independent watchdog and advocacy group, citing news reports in
charging that Mr. Shanahan during meetings had made statements
promoting his former employer before subordinates.
According to the report released Thursday morning the
investigation concluded that evidence didn't show Mr. Shanahan
favored Boeing. The investigation had a narrow focus, officials
said, examining Mr. Shanahan's conduct during a series of meetings
and during other events Mr. Shanahan attended.
The inspector general office's report said it interviewed more
than 30 witnesses, including Mr. Shanahan, and reviewed more than
5,600 pages of unclassified documents and 1,700 pages of classified
documents to compile its 43-page report.
"The DoD OIG did not substantiate any of the allegations and
determined that Acting Secretary Shanahan fully complied with his
ethical obligations and agreements regarding Boeing and its
competitors," the inspector general said in a statement.
The findings were reached relatively quickly, as some
investigations by the inspector general's office last for months.
The inspector general's office didn't immediately respond to a
request for comment.
Mr. Shanahan was briefed on the inspector general's findings
late Wednesday, officials said.
If nominated, Mr. Shanahan still faces a confirmation vote in
the Senate, where some members have expressed concern over his
limited policy experience as a long-serving industry executive.
Mr. Trump, while believed to favor Mr. Shanahan as a defense
chief, also has maintained that he enjoys the flexibility of having
individuals serving in acting capacities.
Mr. Shanahan is the longest-serving acting defense secretary in
the department's history. He served previously as deputy defense
secretary for 17 months.
Write to Nancy A. Youssef at nancy.youssef@wsj.com and Gordon
Lubold at Gordon.Lubold@wsj.com
(END) Dow Jones Newswires
April 25, 2019 11:57 ET (15:57 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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