Tuesday, August 16, 2016

The F-35 Program Office just subsidized Lockheed Martin shareholders.

via Defense Aerospace.
Yet the Pentagon authorized a $1 billion cash payment to Lockheed in early August,Defense News reported August 12, five months earlier than Lockheed expected and for $100 million more than Lockheed’s claimed shortfall.

Furthermore, the payment – reportedly made under an existing undefinitized contract action (UCA), has not been made public.

Joe DellaVedova, spokesman for the F-35 Joint Program Office (JPO), told Defense News that “with what we have provided, Lockheed will be able to continue the LRIP 9 production without bearing any undue burden.”

DelleVedova did not reply to an Aug 15 e-mail asking for clarification.

The cash payment to Lockheed appears all the more surprising that the company apparently does not have any cash-flow problems.

For the first half of the year, Lockheed posted an operating profit of $2.86 billion, dwarfing its claimed $900 million shortfall on the F-35. Lockheed also said it “generated cash from operations of $1.5 billion,” so it was hardly pinched for cash, especially as its F-35 sales increased -- during just the second quarter -- by $390 million, and its profit by $60 million.
This is fraud.

This is criminal.

This is corporate welfare.

Everyone associated with this program is getting smeared because of it.  Fanboys should be proud.  You're not only getting used by the Generals, F-35 program, Lockheed Martin but now you can add shareholders to the list. You're being whored out.

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