European Stars And Stripes (Newspaper) - December 1, 1988, Darmstadt, Hesse                                Thursday Leo sober 1, 1988 the stars and stripes Page 5 be charged in $22 million scam Washington not a Federal grand jury tuesday charged the Genera electric co., the Penta gon s third largest contractor and one of its subsidiaries with trying to cheat the defense department out of $22 million in connection with a Battlefield computer system. A 321-Eount indictment resumed by the grand jury in Philadelphia charged be and management and technical services the subsidiary with mail fraud and presenting false claims to the government. The subsidiary based in King of Prussia pa., is known As Matsco. Two be employees Gerald a. Leo Matsco s former materials manager and James Badolato the unit s for Mer subcontracts manager were charged with racketeering mall fraud and making false statements. According to a defense department statement the companies could face a maximum Fine of s 71,8 Mil lion if convicted. Leo and Badolato could each face a maximum of 55 years in prison and fines of $1.2 Mil lion the Pentagon said. The three year investigation of the Case conducted by the Pentagon and the . Attorney in Philadelphia was not related to the far reaching Pentagon fraud and bribery inquiry that became Public this year. Be denied the charges in a statement saying the two employees had steadfastly maintained their inno Cence and arguing that the company As a whole should not be indicted for the actions purportedly taken by two of its 300,000 employees. There is no allegation that higher level officials in Matsco be aerospace or be a a whole had any knowledge of the alleged withholding of information the statement said. It said the charges had been sensationalized and grossly inflated by listing each of 312 Matsco in voices As a separate false claim. Be said those invoices included shipping notices that simply informed the army of delivery dates. The company said it had conducted its own audit after being informed that the contract was under investigation. Be said it had resumed s3. 59 million to the Pentagon because of what it called unintentional technical pricing  in 1979, Matsco received a contract to build a sys tem for the army and air Force called decentralized automated service a Van filled with computers to Monitor manpower weaponry and Battlefield supplies. The contract was modified while Malesco built a prototype of the Van the Pentagon said. In 1983, the company received a s256-million, five year contract to build the vehicle. The army subsequently decided to scale Back the contract and conducted an audit that the indictment said indicated that Malesco billed the government twice for some parts and raw materials. The company was also accused of arranging for sub contract hrs to submit inflated estimates and then buy ing parts and services at lower prices. The Pentagon said it had already lost $10 million by the time of the audit of the investigation had not occurred it said the loss would have amounted to $22 million. Faa wants jetliners to have 2nd cockpit warning device Washington api the Federal aviation administration told the airlines tuesday in wants an additional warning device in the cockpits of All . Com Mercial jetliners to Tell pilots whether the critical Takeoff alarm system is working. The proposed directive which is expected to go into effect Early next year and give airlines another year to comply would affect about 3,700 Large commercial jets according to the Faa commercial jetliners have alarm systems that Are supposed to warn pilots if the plane s critical control devices such As Wing flaps arc not in the proper Posi Tion for a Takeoff. But in at least two recent crashes it is suspected that the alarms failed to sound because of a malfunction. A spot Check of Boeing 727 aircraft earlier this year showed 35 cases in which the alarms either failed or did not operate properly according to the Faa. The Faa said in a proposed order tuesday that it wants the airlines to install in cockpits of All Large commercial jets an additional warning Light that would go on if for some reason Power has been disrupted to the Takeoff warning system. Airlines have until february to comm Enlon the proposal after which the Faa is expected to Issue a mandatory requirement fairly quickly officials said. While the air carriers will have another year to comply Many probably will begin immediately to make the modification in some aircraft. The alarm systems have been a focus of attention in two crashes one on aug. 16, 1987 of Northwest air lines flight 255 during a Takeoff from Detroit  International Airport the disaster was blamed an the failure of the night Crew to set the plane s Wing flaps property for Takeoff inhibiting its ability to gain lift. The crash of the Mcdonnell Douglas my so claimed 156 lives. Investigators also arc examining the possibility of an improper Flap setting in the crash of a Delta air lines. Boeing 727 near Dallas in August in which 14 of the 108 people on Board were killed. In neither Case did the Takeoff alarm sound to warn the night Crew that the aircraft might not be in proper configuration for departure. The National transportation safety Board deter mined in its investigation of the Detroit crash that the alarm that governed the Takeoff flaps did not sound because of an interruption of electrical Power. Investigators could not determine conclusively what caused the Power interruption the safety Board said. At the Lime however the air line pilots association claimed there was a possible inherent problem with the alarm systems that made them susceptible to electrical  Nosb said it could not determine whether the Power interruption was due to such a defect but also did not Rule out the possibility that the flight Crew might have pulled a circuit breaker to prevent Nui Sance alarms. Japanese  $237million for by secrete new York a Fujitsu Ltd. Will  International business machines corp. $237 million in the next two weeks and millions More in Corning years in return Tor secrets about the software that runs ism mainframe computer arbitrators said. The arbitrators binding order ends a bitter dispute that began in 1982, when ism accused Fujitsu of copying the Complex base layer soft Ware that runs ism s most powerful computers. The arbitrators compensated ism for the in formation it must surrender while removing doubt about the legality of compatible software developed by Fujitsu. The arbitrators Solomon like solved a dilemma in that both sides gel what they want said Michael Geran an analyst for Nikko Securi ties co. International inc. Both companies issued written statements expressing satisfaction with the order. Analysts said the amount of Money being paid to the world s largest computer company was less important than the affirmation of its prop erty rights and the limits on information Fujitsu can obtain. Sands of time in the stars and stripes 40 years ago today. Dec i 1948anti-communist  lies in Italy led by the Christian democrats won a major Victory Over the communists and pro communists in the latest National election. 30 years ago today., dec. I 1958 the newest addition to the Hilton hotel Chain was officially opened by owner Conrad Hilton in West Berlin not. Far from the Branden Borg Gale and the East Berlin Border. 20 years ago foday. Dec. I 1968 shouting Down with the communists 90 Viet Cong guerrilla prisoners were freed by the South vietnamese government As part of its National reconciliation program. J0 years ago today ,.dec i l97s the . Air Force grounded 12 of its Fleet of advanced air borne warning planes the e-3a air borne warning and control system Azacs the world s most expensive aircraft due to fuel pump defects 4 my pro a nes eur by the associated press four major . Airlines on tuesday announced reductions in some air fares Only a week after the biggest carriers made sweeping increases in discount.  airlines and Continental air lines both subsidiaries of Ian Texas air corp., said they Are culling fares to Florida for travel from Jan. 5 through feb. 15, Delta air lines a close competitor of Eastern in the Market linking the Northeast and Florida said it will match the fare reductions. Northwest airlines the nation s fourth largest Carrier announced in is. Paul minn., that it is taking 10 percent off its Domestic fares for any passenger 62 or older. A companion accompanying a senior citizen also is entitled to Lite reduction regardless of the companion s age Northwest  limited fare cuts follow a move last week by the nation s big airlines to boost most of their lowest discount fares and eliminate the cheap fares that can be booked a few Days before a flight. The changes which were initiated by Continental and took effect nov. 22, re vamped the popular Advance Purchase Max Saver arcs used by most vacation travellers. They also dropped the junk fares available four to seven Days before a flight used mainly by business travel ers. In making the changes last week Miami based Eastern said it planned to make an exception in the highly competitive Northeast Florida Market. Delta in response also put off making the Revi Sions in the Florida Market. Eastern the biggest airline in the Flor Ida Market with about a third of the  Senger traffic announced tuesday that it is culling its Max Saver fares from the Northeast to 11 Florida cities by around $40 on a round trip ticket. The new one Way fares Range from $79 to is 19, Down from $109 to it49, Delta is Matching Eastern s fare cuts to Florida a Delta spokeswoman said from the Carrier s Headquarters in Atlanta. Eastern said tickets must be purchased from nov 30 through dec is for travel to Florida from Jan. 5 through feb. 15. Fares arc based on a round trip Purchase and Are non refundable. Tickets must be purchased within 24 hours of making a reservation. Eastern also said it is offering a s50 discount on its Winter vacation packages airline passenger loads Carrion Ullh Moil to Unger Leet ill Lod Braniff us air in it ecu u Al   1968, maps ural by dividing a i Wal in Jos 4ii-Io Tiv Raj Afi-Ijn Fai Rialti c urn in  i Mph. To Florida for travel through feb. 15. Nin Cly nine Dollar. Fares Are Back George Brennan Eastern s vice president of marketing told a news conference in new York. Ten years of airline. Deregulation has taught us that Price discounting really does work. We know that Dis counts can stimulate