Our Man from Boeing: Has the Arms Industry Captured Trump’s Pentagon? (excerpt)
(Source: Project on Government Oversight; issued Jan 29, 2019)
By Mandy Smithberger & William Hartung
The way personnel spin through Washington’s infamous revolving door between the Pentagon and the arms industry is nothing new. That door, however, is moving ever faster with the appointment of Patrick Shanahan, who spent 30 years at Boeing, the Pentagon’s second largest contractor, as the Trump administration’s acting secretary of defense.

Shanahan had previously been deputy secretary of defense, a typical position in recent years for someone with a significant arms industry background. William Lynn, President Obama’s first deputy secretary of defense, had been a Raytheon lobbyist. Ashton Carter, his successor, was a consultant for the same company. One of President George W. Bush’s deputies, Gordon England, had been president of the General Dynamics Fort Worth Aircraft Company (later sold to Lockheed Martin).

“Where will Shanahan stand on a war significantly fueled by the products of his former company?

But Shanahan is unique. No secretary of defense in recent memory has had such a long career in the arms industry and so little experience in government or the military. For most of that career, in fact, his main focus was winning defense contracts for Boeing, not crafting effective defense policies. While the Pentagon should be focused on protecting the country, the arms industry operates in the pursuit of profit, even when that means selling weapons systems to countries working against American national security interests.

The closest analogues to Shanahan were Charlie Wilson, head of General Motors, whom President Dwight Eisenhower appointed to lead the Department of Defense (DoD) more than 60 years ago and John F. Kennedy’s first defense secretary, Robert McNamara, who ran the Ford Motor Company before joining the administration. Eisenhower’s choice of Wilson, whose firm manufactured military vehicles, raised concerns at the time about conflicts of interest—but not in Wilson’s mind. He famously claimed that, “for years I thought what was good for the country was good for General Motors and vice versa.”

Shanahan’s new role raises questions about whether what is in the best interest of Boeing—bigger defense budgets and giant contracts for unaffordable and ineffective weaponry or aircraft—is what’s in the best interest of the public.

Rampant Conflicts of Interest

Unlike Wilson, Shanahan has at least implicitly acknowledged the potential for conflicts of interest in his new role by agreeing to recuse himself from decisions involving his former employer. But were he truly to adhere to such a position, he would have to avoid many of the Pentagon’s most significant management and financial decisions. Last year, after all, Boeing received nearly $30 billion in DoD contracts for working on everything from combat, refueling, training, and radar planes to bombs, drones, missile-defense systems, ballistic missiles, and military satellites. If Shanahan were to step back from deliberations related to all of these, he would, at best, be a part-time steward of the Pentagon, unable even to oversee whether Boeing and related companies delivered what our military asked for.

There is already evidence, however, that he will do anything but refrain from overseeing, and so promoting, his old firm. Take Boeing’s F-15X, for example. Against the wishes of the Air Force, the Pentagon decided to invest at least $1.2 billion in that fighter aircraft, an upgraded version of the Boeing F-15C/D, which had been supplanted by Lockheed Martin’s questionable new F-35. There have been reports that Shanahan has already trashed Lockheed, Boeing’s top competitor, in discussions inside the Pentagon.

According to Bloomberg News, the decision to invest in the F-15X was due, in part at least, to “prodding” from him, when he was still deputy secretary of defense. (end of excerpt)


Click here for the full story, on the POGO website.

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