War Contractor Makes Bid For Election Machines

CHICAGO TRIBUNE - United Technologies Corp. made public Sunday an unsolicited $3 billion bid for Diebold, one of the largest makers of automated teller machines and voting machines. United Technologies, which first approached Diebold two years ago, initially made the offer in private Friday. The bid amounts to $40 a share in cash, or a 66 percent premium over Diebold’s closing price Friday of $24.12, United Technologies said. . .

“This transaction creates significant and immediate value for Diebold shareholders with no operational risk, while creating long-term value for UTC shareholders,” George David, United Technologies’ chairman and chief executive, said in a statement Sunday.
Founded in 1859, Diebold grew as a provider of security technology for financial systems. But Diebold was thrust into the spotlight in the 2004 election when it was criticized for flawed electronic voting machines in Ohio and elsewhere

UNITED TECHNOLOGIES MAKES TOP TEN LIST FOR GOVERNMENT CONTRACTOR MISCONDUCT

PROJECT ON GOVERNMENT OVERSIGHT - United Technologies, based in Hartford, Conn., is a diversified company that provides high technology products and services to the building and aerospace industries.

Federal Contract $: $5,050 millon

Total Number of Instances of misconduct: 10

Total Misconduct dollar amount: $323 million

- According to a GAO report cited by Senator Harkin and Representative DeFazio, United Technologies Optical Systems, reached a settlement for $150,000 for alleged cost/labor mischarging

- According to a GAO report cited by Senator Harkin and Representative DeFazio, United Technologies, reached a settlement for $304,729 for alleged defective pricing. . .

- United Technologies Corporation’s Pratt & Whitney Government Engine and Space Propulsion Division entered into a settlement agreement in which P&W agreed to pay the government $14.8 million, following a Defense Criminal Investigative Service investigation. The agreement resolved charges that P&W violated the False Claims Act by preparing false purchase orders and submitting false invoices under the Foreign Military Sales Program administered by the Defense Security Assistance Agency. . .

- On July 7, 2005, Pratt & Whitney, a subsidiary of United Technologies, reached a settlement “for potential violations of the Uniformed Services Employment and Reemployment Rights Act of 1994, . . . under an outsource labor contract between Pratt & Whitney and EDF Company. On April 24, 2002, Brainard, a Major with the United States Army Reserve, was called to active military service. . .

- The Occupational Safety and Health Administration of the U.S. Department of Labor…cited the Pratt and Whitney Aircraft, Turbine Modular Center, located in North Haven, Connecticut, for alleged willful violations of the Occupational Safety and Health Act and has proposed penalties totaling $155,000 for those alleged violations. . . the company is being cited for four alleged willful violations, carrying proposed penalties totaling $154,000. . .

- “Sikorsky Aircraft Corp. will pay a fine of $176,000 to settle an EPA complaint for violations of the federal stratospheric ozone protection regulations and two federal hazardous air pollutant standards. . .

- “The [Connecticut] Department of Environmental Protection entered into an administrative consent order with Pratt & Whitney Division of United Technologies Corporation on September 7, 2004 for allegedly violating the standards for underground storage tank systems. . .

- “European Union regulators on Wednesday fined United Technologies’ Otis unit and four other elevator makers $1.3 billion for operating cartels for the installation and maintenance of elevators and escalators in Germany, Belgium, Luxembourg and the Netherlands. . .

- Hamilton Sundstrand, a subsidiary of United Technologies, pled guilty to two counts of violating the federal Clean Water Act and was sentenced to five years’ probation and $12 million in fines. Hamilton Sundstrand is one of the world’s largest manufacturers of advanced aerospace and industrial systems. The company, in operating its Windsor Locks, Conn. manufacturing plant, violated its state pollutant discharge permit and attempted to conceal those violations by knowingly submitting false environmental reports.

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