MD Helicopters under US investigation
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MD Helicopters under US investigation
U.S. Scrutinizes Private Equity Hiring of Ex-Army Officer.
http://dealbook.nytimes.com/2013/08/...-officer/?_r=1
Part of the news article:
"Government lawyers have asked the private equity firm headed by the prominent financier Lynn Tilton for information related to its recent hiring of a former Army official, according to people briefed on the matter.
The former Army official, Col. Norbert E. Vergez, headed a unit that awarded lucrative business to a helicopter company owned by Ms. Tilton’s firm, Patriarch Partners.
Last Friday, the civil arm of the Justice Department asked Patriarch to provide it with documents related to Mr. Vergez. Ms. Tilton confirmed the inquiry in a statement on Thursday.
The inquiry is expected to examine Mr. Vergez’s government activities, his dealings with Patriarch and how he came to be hired by the firm in February, according to an official who spoke on the condition of anonymity because he was not authorized to speak publicly.
Until he retired late last year, Mr. Vergez ran a multibillion-dollar Pentagon unit that bought helicopters for the Army and United States allies.
In 2011, Ms. Tilton’s company, MD Helicopters, won a contract worth up to $186 million for as many as 54 helicopters to be used in Afghanistan."
Quote from Ms Tilton.
“MD and Patriarch are squeaky clean,” the statement said.
“Our only fear is of any specter that the press might cast and not of any truth that an investigation will find.”
Its a funny old world and this has a hint of her friend and partner Joep
http://dealbook.nytimes.com/2013/08/...-officer/?_r=1
Part of the news article:
"Government lawyers have asked the private equity firm headed by the prominent financier Lynn Tilton for information related to its recent hiring of a former Army official, according to people briefed on the matter.
The former Army official, Col. Norbert E. Vergez, headed a unit that awarded lucrative business to a helicopter company owned by Ms. Tilton’s firm, Patriarch Partners.
Last Friday, the civil arm of the Justice Department asked Patriarch to provide it with documents related to Mr. Vergez. Ms. Tilton confirmed the inquiry in a statement on Thursday.
The inquiry is expected to examine Mr. Vergez’s government activities, his dealings with Patriarch and how he came to be hired by the firm in February, according to an official who spoke on the condition of anonymity because he was not authorized to speak publicly.
Until he retired late last year, Mr. Vergez ran a multibillion-dollar Pentagon unit that bought helicopters for the Army and United States allies.
In 2011, Ms. Tilton’s company, MD Helicopters, won a contract worth up to $186 million for as many as 54 helicopters to be used in Afghanistan."
Quote from Ms Tilton.
“MD and Patriarch are squeaky clean,” the statement said.
“Our only fear is of any specter that the press might cast and not of any truth that an investigation will find.”
Its a funny old world and this has a hint of her friend and partner Joep
A large airframe manufacturer hires an ex-army procurement officer.
I am shocked to learn of this!
I am sure this has never happened before.
Must be a slow day in Washington.
I am shocked to learn of this!
I am sure this has never happened before.
Must be a slow day in Washington.
Last edited by albatross; 4th Sep 2013 at 00:48.
“Our only fear is of any specter that the press might cast and not of any truth that an investigation will find.”
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I'm with Albatross here - absolutely shocked that an airframe manufacturer could be accused of hiring folks from the military to help peddle their wares. What a dreadful thing to say! As if!
At least they have the courage to investigate it.
In Oz, the former Chief of the Army is now a board member for Australian Aerospace. He was Chief of Army during the introduction of two new key Australian Aerospace (Eurocopter) Rotary capabilities (the Tiger and the MRH90) and whilst both of those platforms were on projects of concern. He was constantly having to meet with the contractor in order for them to provide the contracted services and capabilities. One wonders how well he fought for the soldiers he was responsible for leading. I would love to see that one investigated. I thought Australia was a continent all by itself and not in Africa - maybe I am wrong
In Oz, the former Chief of the Army is now a board member for Australian Aerospace. He was Chief of Army during the introduction of two new key Australian Aerospace (Eurocopter) Rotary capabilities (the Tiger and the MRH90) and whilst both of those platforms were on projects of concern. He was constantly having to meet with the contractor in order for them to provide the contracted services and capabilities. One wonders how well he fought for the soldiers he was responsible for leading. I would love to see that one investigated. I thought Australia was a continent all by itself and not in Africa - maybe I am wrong
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It's not hard to imagine that Boeing felt uncomfortable at being challenged by MDH over the Little Bird contract.
Whether this has advanced the uncovering of the recruitment of a former Army purchasing officer we shall have to see. However, even if Tilton offered Col. Vergez a $3m annual salary (and I'm not saying she did) this in itself will not indict her.
It is only if it can be proved that either, a). Prior to leaving the US Army Col. Vergez influenced the decision to go with MDH or b). Subsequent to leaving he, or other parties representing MDH's interests, were instrumental in swinging a decision in favour of MDH, that any prosecuting could be done.
The US Military tender awards process is not the cleanest of rituals but aside from Tilton recruiting what might be referred to as a sort of "insider process trader" (ie. someone with intimate knowledge of the tender awards process), which in itself is no crime and something practiced by several vendors, I don't see why MDH would need to twist any arms, so to speak.
Was their Little Bird offer not distinctly cheaper than Boeings?
Whether this has advanced the uncovering of the recruitment of a former Army purchasing officer we shall have to see. However, even if Tilton offered Col. Vergez a $3m annual salary (and I'm not saying she did) this in itself will not indict her.
It is only if it can be proved that either, a). Prior to leaving the US Army Col. Vergez influenced the decision to go with MDH or b). Subsequent to leaving he, or other parties representing MDH's interests, were instrumental in swinging a decision in favour of MDH, that any prosecuting could be done.
The US Military tender awards process is not the cleanest of rituals but aside from Tilton recruiting what might be referred to as a sort of "insider process trader" (ie. someone with intimate knowledge of the tender awards process), which in itself is no crime and something practiced by several vendors, I don't see why MDH would need to twist any arms, so to speak.
Was their Little Bird offer not distinctly cheaper than Boeings?
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A big investigation
It looks like this is a much larger investigation than first thought.
The russian development.
Reuters news.
Pentagon opens criminal probe of Russian helicopter deals | Reuters
The russian development.
Reuters news.
Pentagon opens criminal probe of Russian helicopter deals | Reuters
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That investigation is actually a different probe, the only connection being the involvement of the NSRWA (the same office which acquired the six (sorry, "up to 54...") MD530Fs for Afghanistan).
The Russian investigation is primarily focused on the oversight, management and pricing of Mi-17 overhauls and the DoD’s ability to provide QA for maintenance done at a Russian facility under a $550M sustainment award sole-sourced to Rosoboronexport. Interestingly that award was protested at the time by a little-known UAE-based outfit, Cornische Aviation and Maintenance Limited, so it'll be interesting to see how this all turns out.
I/C
The Russian investigation is primarily focused on the oversight, management and pricing of Mi-17 overhauls and the DoD’s ability to provide QA for maintenance done at a Russian facility under a $550M sustainment award sole-sourced to Rosoboronexport. Interestingly that award was protested at the time by a little-known UAE-based outfit, Cornische Aviation and Maintenance Limited, so it'll be interesting to see how this all turns out.
I/C
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At least they have the courage to investigate it.
...and I am not surprised PAN hasn't reported on it:
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European Police tender being written for one European airframe
Keep cancelling, modifying and re-launching the tender until Boeing win.. Priceless.
"European Police tender being written for one European airframe"
NOTAR Fan,
perhaps you have misunderstood something.
If you have, for arguments sake, 7 airframes of type "ABC" already in use and wish to upgrade the role equipment fitted to them then the required outcome is 7 airframes of type "ABC" with upgraded role equipment and not 7 airframes of type "XYZ" with upgraded role equipment.
PAN hasn't reported much because PAN is not in a position to know much at this stage.
Clear??
NOTAR Fan,
perhaps you have misunderstood something.
If you have, for arguments sake, 7 airframes of type "ABC" already in use and wish to upgrade the role equipment fitted to them then the required outcome is 7 airframes of type "ABC" with upgraded role equipment and not 7 airframes of type "XYZ" with upgraded role equipment.
PAN hasn't reported much because PAN is not in a position to know much at this stage.
Clear??
Last edited by Fortyodd2; 6th Sep 2013 at 21:26.
Notar Fan pay attention dear chap ....... the date of the first post on this MD subject may well be a strong clue.
Last edited by PANews; 8th Sep 2013 at 15:19. Reason: Change in thought processes...
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The plot thickens!
Update on the US contracts and investigation. Redstone news.
Is Vergez still employed by Tilton at MDHI?
Pentagon investigating Redstone Arsenal's Non-Standard Rotary Wing Aircraft Office over work on Russian helicopters | al.com
"The Pentagon is conducting a criminal probe of the Army's Non-Standard Rotary Wing Aircraft Office in connection with work on Russian helicopters destined for Afghanistan. The investigation is being led by the Defense Criminal Investigative Service, according to a report in Reuters. It centers on alleged improper payments from the Redstone Arsenal-based Army aviation office to contractors, as well as possible personal connections between members of the unit and the contractors."
Col. Bert Vergez accepted the keys and logbook of an overhauled Russian Mi-17 helicopter from Pavel Borisov of Avia Baltika, at left, then hands them to Science and Engineering Services President Hyo Sang Lee and retired Brig. Gen. E.J. Sinclair, right, the company's CEO, during a 2012 ceremony at Redstone Arsenal.
Is Vergez still employed by Tilton at MDHI?
Pentagon investigating Redstone Arsenal's Non-Standard Rotary Wing Aircraft Office over work on Russian helicopters | al.com
"The Pentagon is conducting a criminal probe of the Army's Non-Standard Rotary Wing Aircraft Office in connection with work on Russian helicopters destined for Afghanistan. The investigation is being led by the Defense Criminal Investigative Service, according to a report in Reuters. It centers on alleged improper payments from the Redstone Arsenal-based Army aviation office to contractors, as well as possible personal connections between members of the unit and the contractors."
Col. Bert Vergez accepted the keys and logbook of an overhauled Russian Mi-17 helicopter from Pavel Borisov of Avia Baltika, at left, then hands them to Science and Engineering Services President Hyo Sang Lee and retired Brig. Gen. E.J. Sinclair, right, the company's CEO, during a 2012 ceremony at Redstone Arsenal.
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Detailed investigative report by the Associated Press: Odd couple at center of Russian helicopter inquiry
I/C
I/C
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Quite a show at Heli-Expo this week! Miss Tilton/Bert Vergez will not be happy to read this article. He was there in all of his splendor as Executive Director for Latin America for MD or some such title.
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Whats news about this. Politicians get rich doing this daily. Retired Military are always sucking the tit of someone (no pun intended in her case) for a life after they retire.
