US commissions latest Littoral Combat Ship, as Austal execs face fraud charges
USS Santa Barbara pictured ahead of its commissioning. (Photo: US DoD)
On April 1, the USN commissioned the latest Austal USA-built Independence-variant Littoral Combat Ship (LCS), USS Santa Barbara (LCS 32), shortly after a federal grand jury indictment charging three Alabama men with orchestrating an accounting fraud scheme at the shipbuilder.
According to court documents, the three men and their co-conspirators allegedly conspired to mislead shareholders and the public about Austal USA’s financial position.
In a press release, the Department of Justice (DoJ) said the defendants are alleged to have ‘artificially reduced and suppressed an accounting metric known as “estimate at completion” (EAC) in relation to multiple LCS ships that Austal USA was building for the US Navy'.
Suppression of the EACs allegedly falsely overstated the company’s reported earnings in public financial statements.
The EAC figures were allegedly manipulated in part by using ‘programme challenges’, or cost-savings goals, that were in
Already have an account? Log in
Want to keep reading this article?
Read this Article
Get access to this article with a Free Basic Account
- Original curated content, daily across air, land and naval domains
- 2 free stories per week
- Daily news round-up email service
- Access to all Decisive Edge email newsletters
Unlimited Access
Access to all our premium news as a Premium News 365 Member. Corporate subscriptions available.
- Original curated content, daily across air, land and naval domains
- 14-day free trial (cancel at any time)
- Unlimited access to all published premium news
More from Naval Warfare
-
![Norway invites four nations to talk partnerships over new frigates]()
Norway invites four nations to talk partnerships over new frigates
The US, the UK, France and Germany each have existing frigate programmes.
-
![Can the US Navy afford its plans to operate a manned/unmanned fleet?]()
Can the US Navy afford its plans to operate a manned/unmanned fleet?
Budgetary constraints and the annual procurement rate could impact the branch’s intention to have a hybrid fleet.
-
![Egypt considers new submarine acquisitions]()
Egypt considers new submarine acquisitions
The long-standing naval procurement partnership between Egypt and France could soon be disrupted as South Korean bidders enter the race to replace the country’s Romeo-class submarines.
