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Tuesday, March 27, 2007

Outsourcing Gives Chinese Sensitive Military Technology: ITT Corp. To Pay $100 Million Penalty

CINCINNATI (TDB) -- Federal prosecutors in Washington say ITT Corp. intentionally allowed classified night-vision technology used by American military forces to fall into the hands of China and other nations. The company outsourced work that should have been done in the United States by American workers.

A criminal case is scheduled to be filed in court tomorrow, March 28, according to U.S. Attorney John Brownlee. The government said the critical military technology was transferred to enhance the company's profits.

Full details are in the statement of facts (long pdf file) that will be presented in court when the company pleads guilty.

Bottom line: U.S. troops lost a tool that gave them a battlefield advantage because somebody wanted to make money. In this instance, outsourcing really is a dirty word.

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