WASHINGTON (Pakistan Point News / Sputnik - 03rd November, 2018) US Defense Contractor Northrop Grumman has accepted a $27.45 million penalty to settle charges for overstating the number of hours its employees worked on two communications contracts with the US Air Force, the Department of Justice said in a press release on Friday.
"Under the settlement, NGSC [Northrop Grumman Systems Corporation], headquartered in Falls Church, Virginia, will make a payment of $25.8 million, which, combined with earlier repayments, will result in a civil recovery of approximately $27.45 million," the release said.
The Air Force entered into two contracts with Northrop Grumman for battlefield communications services, the release explained.
The settlement resolves allegations that Northrop Grumman billed the Air Force for labor hours purportedly incurred between July 1, 2010, and December 31, 2013, by individuals stationed in the middle East who had not actually worked the hours claimed, the release noted.
Northrop Grumman also entered into a separate agreement with the Criminal Division of the US Attorney's Office for the Southern District of California related to these contracts under which it has agreed to forfeit an additional $4.2 million, according to the release.
