Department of Justice Seal

FOR IMMEDIATE RELEASE

CIV

FRIDAY, FEBRUARY 18, 2000

(202) 514-2007

WWW.USDOJ.GOV

TDD (202) 514-1888


TEXAS AIRCRAFT MAINTENANCE FIRM PAYS U.S. NEARLY $1.4 MILLION

TO SETTLE CIVIL DISPUTE


WASHINGTON, D.C. -- A defunct San Antonio aircraft maintenance company has agreed to pay the United States nearly $1.4 million to settle civil allegations it improperly used U.S. government funds to pay for foreign goods and services, the Department of Justice said today. Page Avjet provided repair, modification, and maintenance services for aircraft, and operated as a manufacturer of aircraft ground support equipment. A British firm, BBA, PLC, is Page Avjet's parent company.

"This settlement demonstrates our commitment to ensure that foreign aid will be used to benefit the U.S. economy by encouraging the export of U.S. goods and services," said David W. Ogden, Acting Assistant Attorney General in charge of the Civil Division. The settlement was filed in U.S. District Court in San Antonio.

The Department said the company entered into numerous purchase orders financed by the U.S. under the Foreign Military Sales Program administered by the Defense Security Cooperation Agency to supply $1.25 million of aircraft ground support equipment to the Government of Israel. Page Avjet was supposed to manufacture the items in the United States, but instead contracted with an Israeli firm to supply the goods. Under the law, the federal contracts require that all goods and services must be produced in the U.S. The settlement resolves common law and statutory claims the government filed under the False Claims Act.

The lawsuit is filed as U.S. v. Page Avjet Corporation, No. SA-97-CA-781-EP.

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