August 7th, 2012

Was a contract awarded to an FCPA violator?

Hawker Beechcraft, famous for making trainer planes used heavily by the military, thought it would win a contract for counterinsurgency planes to be used in Afghanistan. However the firm was arbitrarily excluded from winning that contract, which was in the end won by Embraer.

Now critics suggest there’s more to the story.

If Embraer, under investigation for FCPA violations, does turn out to be engaged in corruption, Embraer’s critics say the process should be run again, this time with more transparency, to avoid the appearance of anything improper.

Observers have suggested most US military pilots have flown Hawker Beechcraft trainers in the course of their careers. Thy’ve proven themselves, say their supporters, and so should be given a chance to compete.