Lockheed Bribery Scandal of 1976

http://en.wikipedia.org/wiki/Lockheed_bribery_scandals


Lockheed Martin is known for the production of  the Unites States military aircraft. They have produced airplanes for over 100 years. These aircrafts are highly accurate in the time of war and have technology that no ordinary American will ever see in his or her lifetime.

Before the 1970's, Lockheed Martin's production of airplanes were the talk of the century. They upgraded the planes as new ideas and technology come across their desks. Many planes like the Model 14, L-049 Constellation and the famous P-38 used for the attack on Japan after the attack on Pearl Harbor, have brought much success to Lockheed. However, the production of the L-1011 Tri-Star airliner caused the beginning of Lockheed's financial trouble. Because of commercial failure, Lockheed fell into a debt that they could not pay. This one aircraft failure almost ruined Lockheed.

But Lockheed had an answer to their financial difficulties. They would bribe other countries to buy future production of aircrafts to keep Lockheed above water. They called on Italy, West Germany, Japan, Netherlands, and Saudi Arabia. Theses bribes add up to $22 million to government officials for the upcoming F-104 Starfighter.

West Germany's Minister of Defence, Franz Josef Strauss, received at least $10 million for the purchase of 900 F-104G Starfighter's in 1961. Investigations began in 1962 concerning the bribes from the United States to West Germany, but feel short because the paperwork was destroyed.

Next, Lockheed admitted to bribing Japan's Prime Minister Kakuei Tanaka $3 million. Tanaka arrest came on July 27, 1976 and released on a $690,000 bond. Later Tanaka was sentenced to four years in prison and later died of a stroke in 1993.

Netherlands Prince Bernhard received $1.1 million from Lockheed but denied any transactions took place. At the time of his death, interviews were watch and Bernhard admitted that he accepted money from Lockheed.

And Saudi Arabia's, Adan Khashoggi, accepted $106 million in commissions between 1970 and 1975.

Daniel Haughton, Lockheed chairman of the board, and Carl Kotchian vice chairman and president resigned on February 13, 1976. In December of 1977, Jimmy Carter signed a bill stating it is illegal for American persons and entities to bribe foreign government officials.