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TIME: Almanac 1990s
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<text id=91TT1882>
<title>
Aug. 26, 1991: American Notes:Scandals
</title>
<history>
TIME--The Weekly Newsmagazine--1991
Aug. 26, 1991 Science Under Siege
</history>
<article>
<source>Time Magazine</source>
<hdr>
NATION, Page 23
American Notes
SCANDALS
GE Brings Bad Things to Light
</hdr><body>
<p> There are at least two things that Israelis like to think
they can lean on: their military, and the $1.8 billion they
receive annually from the U.S. to buy arms. Both pillars trembled
when the Justice Department, in a Cincinnati lawsuit unsealed last
week, accused General Electric Co. of conspiring with Israeli
General Rami Dotan to defraud Washington of $30 million in U.S.
military aid by padding invoices and charging for work that was
never done. Last March, Dotan was sentenced to 13 years in
prison for his role in the scam, which investigators believe
diverted into his bank accounts money earmarked for the
purchase of F-16 engines.
</p>
<p> GE, which is conducting its own investigation, has
dismissed the engine division's international sales manager. But
the company criticized Chester Walsh, the executive who exposed
the scheme under a federal law that protects and rewards
whistle-blowers, grousing that he should have reported his
suspicions to the company first. Walsh may eventually be able
to shrug off his bosses' disapproval. If the charges stick, he
could receive as much as 30% of the amount recovered by the
government from his company.
</p>
</body></article>
</text>