Question

After viewing "Boeing CFO and Top Pentagon Air Force Buyer Go to Prison Over $4 Billion Fraud" from YouTube. Answer following question on 2 paragraphs with 2 references.

Is there a conflict of interest? How to prevent the conflict of interest?

Answer 1

Answer-

Case law 'fraud in procurement of fighter jets by airforce official of pentagon" -

Yes,there was conflict of interest at the time, when a contract to procure numbers of fighter jets by pentagon from boeing was on the verge of completion.A top official of Pentagon Mrs Darleen druyun had engagaed with the CFO of boeing to employe her daughter and future son in law at a vital position in Boeing Inc.This lead to a conflict of interest in the deal of fighter jets.When someone, who has decision making power, engages with the other party in any current or future pecuniary relationship then the transparancy and honesty of such underlying contract becomes questionable.Mrs Druyun asked boeing company to favor her and her daughter to provide a long term employement.During the employement of her daughter the boeing company is likely to pass the benefits which might have agreed between both the culprits.So,overall it was a half favor me and half favor you deal which exposed by the investigation agency and the CFO of beoing and Mrs Dryun had to face legal consequences of penalty and imprsonment.This lead to a unfair trade deal between the boeing and pentagon government.

There is more need of greater transparancy to avoid these type of conflict of interest in the contracts.The company and government should empoye a proper check on the work of these employees.This check may be established via a chain based system where every supiorer is checked by his most superior official.The auditors of these company and specially the interenal auditor must have professional skepticisim to find out the possible fraud like this.

Thats it for this topic.

Please comment for any explanation,

Thanks,