(C) Common Dreams
This story was originally published by Common Dreams and is unaltered.
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LOCKHEED HEADS EXPECTED TO QUIT IN BRIBE SCANDAL [1]
['Richard Witkin']
Date: 1976-02-12
First came the news that Lockheed had paid $7 million to Yoshio Kodama, a Japanese rightist with powerful political influence and ties to the Japanese underworld. This was part of a total of $12.8 million paid to Mr. Kodama, to a leading trading concern, and to a Hong Kong publicity company to help Lockheed win competitions for aircraft sales in Japan.
Then came disclosures by Lockheed's president, Mr. Kotchian, in subcommittee testimony that $1.1 million had gone to a high Dutch official — later identified as Prince Bernhard, 64‐year‐old husband of Queen Juliana—in 1961 and 1972 to aid in sales of Lockheed planes to that country. The Prince has denied the charge, but the storm has shaken the country and the Dutch Cabinet has set up a special commission to investigate.
Still other Lockheed payoffs are said to have been made to consummate sales in such countries as Italy, Turkey, South Africa, Nigeria, Mexico and Colombia. The General Accounting Office put the total figure it had tallied at $24.4 million. But since payments were not always recorded, complete figures may not be obtainable.
G.A.O. Issues Warning
The G.A.O., auditing arm of the Congress, warned at the same time that Lockheed might not be able to repay its Government‐guaranteed loans on time. However, there was some feeling in the financial community that this warning might be based on somewhat out‐ofdate figures and that, were it not for the bribery scandal and its potential effects, Lockheed's repayment of the loans might well be made when they are due at the end of 1977. The total of guaranteed loans now outstanding is $195‐ million.
Despite the initial disclosures last year of $22 million in payoffs,’ in which names and countries were withheld, Lockheed's board of directors reaffirmed Mr. Haughton as chairman and added the position of chief executive officer. The announcement said he would go on “normal retire. ment” on reaching the age of 65 in September and that the board would negotiate a “consulting agreement” with him “to ensure his continuing contribution to the corporate management.”
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[1] Url:
https://www.nytimes.com/1976/02/12/archives/lockheed-heads-expecped-to-quit-in-bribe-scandal-early-departure-of.html
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