Sunday, March 3, 2013

Reuters: Regulatory News: Pratt & Whitney uncovers fraudulent engine-testing scheme - WSJ

Reuters: Regulatory News
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Pratt & Whitney uncovers fraudulent engine-testing scheme - WSJ
Mar 4th 2013, 06:30

March 4 | Mon Mar 4, 2013 1:30am EST

March 4 (Reuters) - Pratt & Whitney, a subsidiary of United Technologies Corp, uncovered a fraudulent scheme of testing engine parts by another unit of United Tech, the Wall Street Journal reported on Monday.

The investigation, which began in 2011 and hadn't been reported publicly before, "uncovered an elaborate, years-long effort to doctor metallurgical test results, so as to make certain engine forgings appear to meet extra-stringent standards when they actually fell short," the Journal said, citing Pratt officials.

The U.S. Federal Aviation Administration launched a formal administrative proceeding after being informed by Pratt of its probe, the Journal said.

The break-up of the testing scheme, which was allegedly carried out by United Tech's Carmel Forge Ltd unit in Israel, would affect thousands of engine parts used on business jets and turboprop aircraft around the world, the business daily said.

The metal parts in question were used in engines made by Pratt & Whitney's Canadian operations and do not pose any safety hazard, the Journal reported.

Pratt spokesman Jay DeFrank told the Journal "he wasn't aware of another instance in which Pratt & Whitney quality-control experts have seen falsification of this magnitude."

Pratt & Whitney and Carmel Forge officials were not immediately available for comment when contacted by Reuters outside regular U.S. business hours.

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