US defence firm faces $283m bill over accounts
United Technologies, the maker of Black Hawk engines, to pay fine over contract dispute
United Technologies is to pay the US department of defence $283m (£152m)
after it was found that the company was overcharging for work through its
The fine relates to the US company’s Pratt & Whitney jet engine unit,
which was found to have overcharged for contracts, the BBC reports.
The disputed work occurred between 1984 and 2004 and involved making jet
engine parts for commercial airlines as part of venture with foreign suppliers.
The department for defence was not satisfied with the way Pratt &
Whitney allocated overhead costs for commercial and state projects. In 2005 the
company adopted a revised accounting method for this work, which the government
United Technologies said the fine would have a negligible impact on its 2006