US: The Case Against General Electric
Multinational Monitor
August 1st, 2001
GE has a lengthy record of criminal, civil, political and ethical transgressions, some of them shocking in disregard for the integrity of human beings. Here are a few examples:
In 1995, with the establishment of a Presidential Advisory Commission, the full extent of GE’s human experiments with nuclear radiation were revealed. General Electric ran the Hanford Nuclear Reservation in Richland, Washington as part of the U.S. weapons program. Beginning in 1949, General Electric deliberately released radioactive material to see how far downwind it would travel. One cloud drifted 400 miles, all the way down to the California-Oregon border, carrying perhaps thousands of times more radiation than that emitted at Three Mile Island.
In 1986, Representative Edward Markey, D-Massachusetts, held hearings in which it was disclosed that the United States and General Electric had conducted experiments on hundreds of United States citizens who became “nuclear calibration devices for experimenters run amok.” According to Markey: “Too many of these experiments used human subjects that were captive audiences or populations ... considered ‘expendable’ ... the elderly, prisoners and hospital patients who might not have retained their full faculties for informed consent.”
One of GE’s most gruesome experiments — disclosed in the Markey hearings — was performed on inmates at a prison in Walla Walla, Washington, near Hanford. Starting in 1963, 64 prisoners had their scrotums and testes irradiated to determine the effects of radiation on human reproductive organs. Although the inmates were warned about the possibility of sterility and radiation burns, the forms said nothing about the risk of testicular cancer. Markey’s committee heard allegations that, at the time of the experiments, General Electric violated both civil and criminal laws....
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+ GE is wholly or partially liable for at least 78 federal Superfund sites.
+ On September 29, 1998, General Electric agreed to a $200 million settlement in principle of environmental claims resulting from pollution of the Housatonic River and other areas by chemical releases from GE’s plant in Pittsfield, Massachusetts. (The settlement was reached with the Environmental Protection Agency and the Department of Justice.)
The claims result from a long history of GE’s use and disposal of polychlorinated biphenyls (PCBs) and other hazardous substances at the plant, which GE no longer uses for manufacturing. (PCBs, which have been linked to cancer, were commonly used in electrical devices and lubricants from the 1930s through the 1970s, when they were banned.)......
Defense Contracting Fraud
+ On July 23, 1992, GE pled guilty in federal court to civil and criminal charges of defrauding the Pentagon and agreed to pay $69 million to the U.S. government in fines — one of the largest defense contracting fines ever.
General Electric said in a statement that it took responsibility for the actions of a former marketing employee who, along with an Israeli Air Force General, diverted Pentagon funds to their own bank accounts and to fund Israeli military programs not authorized by the United States.
Under the settlement with the Justice Department over violations of the Foreign Corrupt Practices Act, GE paid $59.5 million in civil fraud claims and $9.5 million in criminal fines.
+ GE’s civil and criminal transgressions stemming from the Israeli military program are by no means isolated. GE is a repeat offender when it comes to Defense Department fraud. The company has repeatedly violated the False Claims Act — a measure originally proposed by Lincoln to protect federal coffers. When the Project on Government Oversight surveyed defense contractors, it found that General Electric was responsible for 15 instances of fraudulent activity in just a four year period (1990-1994) — more than any other defense contractor. GE:
1. Paid $7.1 million to settle a qui tam suit alleging that the company failed to satisfy electrical bonding requirements for its jet engine contracts, thereby creating a safety risk.
2. Paid $5.87 million (along with Martin Marietta) to settle a qui tam suit associated with improper sales of radar systems to Egypt.
3. Paid fines between 1990 and 1994 ranging from a $20,000 criminal fine to a $24.6 million civil fine for a variety of defense contracting frauds, including: misrepresentation, money laundering, defective pricing (2 incidents), cost mischarging (3 incidents), false claims, product substitution, conspiracy/conversion of classified documents, procurement fraud and mail fraud.
4. Was convicted on February 3, 1990 in U.S. District Court in Philadelphia of defrauding the government out of $10 million for a battlefield computer system.
5. Pled guilty on May 19, 1985 to charges of fraud and falsifying 108 claims on a missile contract.
6. Was convicted of defrauding the Air Force out of $800,000 on the Minuteman Missile Project.
7. Was convicted of bribing the Puerto Rico Water Resources Authority.
Consumer Wrongdoing
+ GE was among four companies which paid New York City more than $4 million in 1982 to settle a lawsuit charging that wiring and cables in 754 subway cars were defective.
+ GE in 1992 agreed to pay $165,000 to settle a suit brought by 11 state attorneys general alleging the company deceptively advertised its lightbulbs. According to the state AGs, the ads promised consumers the same amount of light for less energy, but in fact the lightbulbs simply delivered less wattage.
+ GE Capital was ordered to pay $100 million for unfair debt collection practices, as part of a 1999 class-action lawsuit settlement. The suit alleged that GE solicited agreements from bankrupt creditors to pay their credit card agreements without notifying bankruptcy courts of the agreements.
+ GE recalled 3.1 million dishwashers beginning in 1999, stating that a side switch could melt and ignite, presenting a fire hazard.
+ In April 2001, New York State AG Eliot Spitzer won a ruling in state court that, in connection with the dishwasher recall, GE falsely told consumers the problem could not be repaired, prodding customers with partial rebates to buy new GE dishwashers.
Whole report:
http://www.corpwatch.org/article.php?id=7846
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