BusinessCompany NewsUS defence firm faces $283m bill over accounts

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
accounting system.

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
approved.

United Technologies said the fine would have a negligible impact on its 2006
results.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor