The Herald-Palladium from Benton Harbor, Michigan • 40

FORTY THE HERALD-PALLADIUM, Benton Harbor St. Joseph, Michigan MONDAY, APRIL 29, 1985 Golf Outing, Haircuts Among Defense Firm's Bills By VICKI BROWN -P. Washington Bureau WASHINGTON Audits of seven major defense contractors indicate that "up to $1 of every $33 submitted to the government for overhead expenses is questionable," said U.S. Rep. William Nichols (D-Ala.) prior to the release of the report today.

Nichols and U.S. Rep. Charles Bennett (D-Fla.) released the first results of an audit of seven major contractors by two House Armed Services subcommittees they chair. Auditors found that defense contractors have charged the Pentagon for golf outings, haircuts for their executives and for ads to burnish the firm's image after one of its planes crashed, Nichols said. "We are finding millions of dollars of absolutely inexcusable claims filed with the said Bennett.

Nichols said the committee sent 14 auditors out April 1. The investigation began after revelations that General Dynamics the nation's third-largest defense contractor, billed $244 million in improper overhead charges to the Pentagon. "We are hoping we would find General Dynamics was an isolated case. Regrettably, we didn't find that," said Nichols, who chairs the Investigations Subcommittee of Armed Services. The results were "extremely disturning," said Nichols.

Abuses like this make it difficult to justify any continued defense buildup, said Nichols, who has been a supporter of both the Carter and Reagan military buildups. "Everywhere I go back home people ask me why we aren't doing anything about this," he said. He do added that when the defense budget hits the House floor, it will be difficult to respond to members who ask why the military gets more money when "you haven 't spent what you've gotten wisely." He said he expects the House to vote to freeze military spending at the 1985 level with no increase for inflation and believes the revelations of abuses will be partly responsible for the move. A long list of typical abuses were released, which Nichols said were representative of billing mistakes found at all seven of the firms checked. Auditors went to General Dynamics St.

Louis; Sperry New York; Newport News Shipbuilding and Dry Dock Newport News, Bell Helicopter, Ft. Worth, Texas; McDonnel Douglas St. Louis; Rockwell International, Pittsburgh; and the Boeing Seattle, where the firms were audited. However, the committee only categorized the questionable billings and did not specify which abuses Among occured the at questionable which listed were: One firm billed $1,099 for the operating losses to employes' cafeterias for two years, despite DOD regulations that say firms must operate cafeterias with the intent of breaking even. Another firm billed $261,000 for its executive dining room, where senior executives dined without charge.

Billings related to commercial sales, such as $1,000 for meals at the World Trade Center in New York City "in connection with holiday luncheon for commercial customers." Bills totaling $62,071 to enhance the public image of the firm in the wake of the crash of a plane manufactured by the firm. That included payment of a public-relations firm for a campaign that included $7,223 for printing multi-colored luggage lab els that touted the virtues of the downed plane. A bill for $160,000 for taxes paid a foreign government in con-: nection with commercial business. One firm billed $162,149 for airplane models and assorted other giveaways such as 26,000 tie tacks, also necklaces, hats and commemorative flight pins, etc. One firm billed $12,333 for season tickets to the Los Angeles Forum, justified as useful for employee morale.

A 1981 bill to a golf club totaled $959.30 for one "golf outing." A single firm billed $950,698 for expenses related to the Paris Air Show, such as exhibits, salaries for personnel at the show, travel, lodging and meals. This despite a DOD ruling long ago that air show expenses were not allowable. the audits are completed and reported in full in May, Nichols said the committee must start considering what action can halt the abuses. Nichols said auditors found that Berrien County Marriage Licenses The following marriage licenses have been issued by Berrien County Clerk Forrest H. Kesterke: Vincent Leo Rose, 21, and Lori Ann Nemitz, 21, both of Bridgman.

Fred LeRoy Conyers, 43, and Ellen Jean Wilcott-Conyers, 38, both of Benton Harbor. John Henry Krumroy, 18, and Cecilia Rene Jorgensen, 20, both of Berrien Center. Thomas Richard Buwa, 23, and Vickie Ellen Huss, 30, both of Niles. Lawrence Blane Bauer, 20, and Lora Anne Lindhorst, 18, both of New Buffalo. Bruce Lee Livesay, 19, and Tarya Lynn Walls, 18, both of New Troy.

Steven Richard Hood, 29, and Cherri Dawn Pellow, 27, both of Niles. Raymond Leo Jinkins, 59, Watervliet, and Sondja Fay Puckett, 38, Benton Harbor. when questionable billings are dis- would decide to settle for $7 mil- contract officer who had been re- different at the Newport News ship- has not yet paid for the questionputed, what often happens is that lion, he said. viewing contracts at the same com- yard, where the 1 Navy had some- able items found by the auditors. the government contract officer That kind of dealing encourages pany for 14 years.

how retained an old method of do- Nichols had no real answers for who decides which items will be the companies to bill unjustified "It makes for a rather cozy rela- ing business in which the auditer is why the abuses had not been found paid settles it by "horse trading." items, knowing they will collect for tionship," he said, although he ad- the final arbiter. sooner, although he said that the For example, if the bill was $10 part of them, Nichols said. He also ded that no evidence of actual kick- "He's the pope, what he says is size of government contracts now million and the contract officer added that auditors had found in- backs had been found. the way it's settled," said Nichols. might have something to with the said $4 million was justified, they stances such as one government He said the set-up was somewhat He stressed that the government abuses being revealed.

Lucas Termed Best GOP Hope To Beat Blanchard BAY CITY, Mich. (AP) Wayne County Executive William Lucas is the only candidate who could help the Republicans defeat Democrat Gov. James Blanchard in 1986, a prominent GOP moderate said. Lucas, a black Democrat expected to switch parties, is "the only one with a chance" to oust Blanchard, said Ellen Templin, chairwoman of the second annual Michigan Moderate Republican Conference, which concluded Sunday. Lucas has said he is considering a run governor, and moderate Republicans debated the merits of that strategy Sunday.

"I'd support Lucas," said House Republican Leader Michael Busch of Saginaw. "He's our best shot something new and fresh." However, DeVon Cunningham, a community relations official for Detroit Edison said it would be a mistake for Republicans to nominate Lucas. Cunningham said Lucas is being supported by whites because he is fighting Detroit Mayor Coleman Young, who is black. Also Sunday, Ms. Templin urged more conservative party leaders to move to a philosphical center or risk losing more statewide elections.

She cited Richard Headlee's loss to Blanchard in the 1982 gubernatorial race and Jack Lousma's fall to Democratic U.S. Sen. Carl Levin last year. "It takes all kinds of Republicans to win elections and they can't do it without us," Ms. Templin said.

"We're going too far right. We won't win statewide elections this way. We will continue to lose." The moderate conference was formed to counterbalance what Ms. Templin called the "radical right" wing of the GOP, which gained influence after former Republican Gov. William Milliken left office in 1982.

Ms. Templin criticized conservatives for an agenda that includes strident opposition to an Equal Rights Amendment to the Constitution and abortion. "What we are most of all are pragmatists that want to make things work," said Ms. Templin, of Bloomfield Hills. "'The radical right want to expunge everybody who doesn't agree with them." About 100 people attended the weekend meeting at a Bay City resort.

They heard from U.S. Rep. Jim Leach, R-Iowa, Ralph Ness, deputy director of the Leadership Conference for Civil Rights, and other speakers. State Republican Chairman Spencer Abraham and Senate Majority Leader Engler of Mount Pleasant, neither of whom held a leadership post during the Milliken era and both generally viewed as conservative, also appeared. Ms.

Templin said their attendance looked like an effort to downplay any division in the party. Those at the conference also agreed the state GOP should establish more of a presence in overwhelmingly Democratic Detroit, Ms. said, suggesting a party office be reopened there. She said the danger exists that the GOP could become a party for people outside of southeastern Michigan only. "You need 25 percent of Wayne County (votes) to win in this state," she said.

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