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Boeing allegedly defrauded the government by inflating the price of soap dispensers by nearly 8,000%.

Boeing allegedly defrauded the government by inflating the price of soap dispensers by nearly 8,000%.

Boeing (bachelor) has no problems with money laundering, but the US military accuses the aircraft manufacturer of some funny financial fraud related to cleaning products. Audit published by the Ministry of Defense on Tuesday, it was revealed that the company was overcharging for replacement soap dispensers on C-17 cargo planes.

“The Air Force did not always pay reasonable prices for C-17 replacement parts under the Federal Acquisition Regulation, such as the toilet soap dispenser, which had a markup of 7,943 percent, or more than 80 times the commercially available cost,” the report says.

Auditors looked at the soap dispensers as part of the C-17 maintenance contract, which was valued at $35.6 billion between the original and additional terms beginning in 2011 and extended through 2031. Under the contract, the Department of Defense reimbursed Boeing for the parts.

The audit specifically looked at reimbursement rates for 46 different parts. It was found that:

  • The government paid a “fair and reasonable” $20 million for 9 of them.

  • The government could not determine whether it paid a “fair and reasonable” $22 million for 25 of them.

  • For 9 of them the government paid an unjust and unjust $4.3 million.

“Fair and reasonable” in this case was a 25% markup. Regarding the soap dispensers specifically, the government did not say how many of them it bought, but said it overpaid $150,000 for them compared to market prices.

Boeing says it is still reviewing the report.

“We are reviewing a report that appears to be based on inappropriate comparisons of prices paid for parts consistent with aircraft and contract specifications and designs with basic commercial items that would not be qualified or approved for use on the C-17,” About this is according to a company statement provided to Quartz. “We will continue to work with OIG and the Air Force to provide a detailed written response to the report in the coming days.”

This is not the first time this year that soap has been mentioned in Boeing’s audit. When the FAA looked In the company’s manufacturing processes, after a door plug blew out on a 737 Max 9 commercial airliner, it was discovered that contractors used dishwashing detergent to lubricate parts during assembly.

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