Lockhead Aircraft Corp. Board Chairman Robert W. Haack said yesterday there is "no factual basis" for government charges that a Lockheed subsidiary overcharged about $8 million for steel used in a dozen ships it built for the Navy.
Haack protested that the charges, aired Monday at a Senate hearing by Renegotiation Board Chairman Goodwin Chase, have "never previously been brought to the company's attention."
Haack also complained that "confidential" business information was leaked to the press prior to the hearing and resulted in "misleading articles."
The Washington Post reported Monday that government investigators contend the subsidiary, Lockhead Shipbuilding and Constrution Co., built 12 vessels for the Navy but billed the government for enough steel to build 20.
"We know of no factual basis for this accusation," said Haack.
Haack also objected to an investigator's report, quoted by The Post, that it was difficult to trace Lockhead bookkeeping entries because "many records were destroyed." No documents "have been deliberately destroyed to avoid scrutiny" by investigators, he said.
Noting that the Lockhead case was cited Monday by Renegatiation Board members as an example of why they need broader powers to recover excees prof its on defense contracts, Haack said he "can only conclude that the issue of confidential business data has been deliberately planned in an attempt to support questionable legislation that cannot be defended on its own merit."