The following are corrections of certain statements made in articles concerning Page Airways Inc., Wilmorite Inc. and J.P. Wilmot published during the past year. There is no ongoing dispute between the FAA and Page with respect to an FAA audit of Page's contracts at Dulles and National airports, as stated in our article. In fact, the matter was settled in February 1975. Page has set aside $9 million with a court to cover an antitrust judgement against it, pending the outcome of its appeal. It is not preparing itself to make such a payment and, therefore, does not have to devote any further funds to this purpose as we suggested. Moreover, the company has paid dividends only once in its corporate history and its not having done so during the past two years is not, as we inferred, necessarily related to its having set aside the above-noted $9 million. Wilmorite was not the recipient of $88 million in federal rent subsidies as reported. It was neither an applicant for, nor a direct beneficiary of, these funds. It only contracted with the recipient to build apartment buildings for which it was paid $16,500,000 to cover the costs of construction. The Post reported that Page's National and Dulles airport contracts were awarded in violation of federal competitive bidding policy. We have been informed by some FAA officials that exceptions to the general competitive bidding requirements are permissible, if certain sole source criteria are satisfied and that they believe these criteria were satisfied in Page's case. There is no indication that the FAA decision to extend the Page contracts without rebidding was the product of improper activity by Page or its employes.
Grumman Corp. agreed in 1974 to pay more than $24 million in secret commissions to sales agents for their help in "influencing the government of Iran to purchase the F-14 Tomcat fighter," according to the Securities and Exchange Commission.
The SEC made the revelations about the Bethpage, N.Y., aerospace company in a civil suit filed yesterday against the firm in U.S. District Court here.
On Wednesday, a former Grumman subsidiary pleaded guilty to criminal charges of making false statements about more than $5 million in payments it made to foreign officials in connection with the sale of non-military jets.
In its civil suit, the SEC charged Grumman with "fraud or deceit" against its shareholders for failing to disclose the details of its questionable foreign payments.
While neither admitting nor denying the SEC allegations, the company voluntarily filed a detailed description of the various transactions. In settling with the commission, Grumman agreed to perform its won internal investigation and report the rusults to the SEC.
In addition to the new revelations about the Iranian payments, the SEC suit included a number of questionable payments on sales of civilian aircraft that also were included in the criminal case.
Similar allegations were made last April when the SEC sued Page Airways Inc., a Rochester, N.Y., firm that was the world-wide distributor of the $6 million Gulfstream II executive jet manufactured by Grumman Corp.
According to documents filed in yesterday's action, the government of Iran agreed to buy a total of 80 F-14 fighter planes in 1974. The planes were ordered through the U.S. Department of Defense.
Grumman said it expected to collect $1.5 billion in revenues from the sale of the aircraft and spare parts.
The company paid $6 million in commissions after the sales were made, agreeing to pay an additional $18 million later.
According to Grumman's own filing, made public through an unnamed "retired colonel in the Imperial Iranian Air Force" who a company employe once described as a "bag man."
However, the employe later clained that "he intended this term to refer to the diplomatic and military practice of transmitting confidential material by courier in a sealed pouch," according to the company.
Grumman said that the Iranian government protested the $6 million commission paid to the agents. The government claimed it was entitled to the full $24 million in commissions from Grumman.
The agent then assigened all rights to the commissions over to the Iranian government, Grumman said. To settle with Iran, Grumman says it "agreed to give approximately $24 million worth of spare parts" to the government.
Still another agent retained earlier by Grumman and dropped because he reportedly was "in bad repute in Iran," has sued the company in New York courts. The unnamed agent is seeking $18 million in commissions and $100 million in compensatory and punitive damages, according to the company.
Company and SEC documents filed yesterday list more than a dozen countries where questionable payments were made to encourage sales of executive jets.
As described in earlier lawsuits, some of these payments -- totaling to about $10 million -- allegedly went to government officials in those countries.
Among the countries named were Cameroun, Sabah, the Ivory Coast, Gabon, Togo, Venezuela, Morocco, Nigeria, Algeria, United Arab Emirates, Saudi Arabia, Abu Dhabi, Korea, Greece, Jordan and Panama.
In 1973, according to the company, its subsidiary that produced the executive jet, Gulfstream Aviation Corp., paid $300,000 in commissions to a Japanese trading company on the sale of a jet to its government. According to the court papers, the $300,000 was "concealed fromthe Japanese government."
Gulfstream Aviation Corp. was named, along with its Grumman parent, in the SEC suit. Last September, Grumman sold its interest in the subsidiary, which is now known as Gulfstream American Corp.