Fairchild Industries Inc. yesterday denied allegations by Rep. Fortney H. (Pete) Stark Jr. (D-Calif.) that the company billed the government for commuting expenses of its board chairman, who retired Wednesday.
Fairchild said in a statement issued here that Edward G. Uhl "never personally billed the government for air travel or any other expenses" and that "implications that Uhl or Fairchild has attempted to cheat the government or sought payments illegally are grossly unfair."
The Associated Press reported Thursday that the Defense Department is challenging hundreds of thousands of dollars in bills submitted by Uhl since 1982 to cover air commuting expenses from his house in Easton, Md., to corporate headquarters, then in Germantown, Md., 100 miles away.
Fairchild said in its statement that a variety of expenses are included in overhead rate submissions to the government, including those related to the use of company aircraft. About a year ago, it said, the company and government agreed to eliminate from past overhead rates any expenses related to air travel between Uhl's house and the company's headquarters.
Fairchild said it has stopped charging the government for such air travel expenses.
The company also said it has reported the air travel as fully taxable executive compensation and that Uhl has treated it as income on his tax returns.