WASHINGTON: The Justice Department has reached a deal with Boeing that will allow the airplane giant to avoid criminal prosecution for allegedly misleading US regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed Friday.
Under the “agreement in principle,” which still needs to be finalized, Boeing would pay or invest more than $1.1 billion, including an additional $445 million for the crash victims’ families, the Justice Department said.
In return, the department has agreed to dismiss the fraud charge against Boeing, allowing the manufacturer to avoid a possible criminal conviction that could have jeopardized the company’s status as a federal contractor, according to experts.
“Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,” a Justice Department spokesperson said in a statement.
“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.”
Boeing on Friday declined to comment.
Some relatives of the passengers who died in the crashes, which took place off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019, have been pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing. The Justice Department noted that the victims’ families had mixed views on the proposed deal.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in US history,” said Paul Cassell, an attorney for many of the families in the long-running case. “My families will object and hope to convince the court to reject it.”
Javier de Luis, whose sister, Graziella, died in the Ethiopia crash, said the Justice Department is walking away “from any pretense to seek justice for the victims of the 737Max crashes.”
“The message sent by this action to companies around the country is, don’t worry about making your products safe for your customers,” he said in a statement. “Even if you kill them, just pay a small fine and move on.”
Boeing was accused of misleading the Federal Aviation Administration about aspects of the Max before the agency certified the plane for flight. Boeing did not tell airlines and pilots about a new software system, called MCAS, that could turn the plane’s nose down without input from pilots if a sensor detected that the plane might go into an aerodynamic stall.
The Max planes crashed after a faulty reading from the sensor pushed the nose down and pilots were unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned MCAS to make it less powerful and to use signals from two sensors, not just one.
The Justice Department charged Boeing in 2021 with deceiving FAA regulators about the software, which did not exist in older 737s, and about how much training pilots would need to fly the plane safely. The department agreed not to prosecute Boeing at the time, however, if the company paid a $2.5 billion settlement, including the $243.6 million fine, and took steps to comply with anti-fraud laws for three years.
Federal prosecutors, however, last year said Boeing violated the terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. Boeing agreed last July to plead guilty to the felony fraud charge instead of enduring a potentially lengthy public trial.
But in December, US District Judge Reed O’Connor in Fort Worth rejected the plea deal. The judge said the diversity, inclusion and equity, or DEI, policies in the government and at Boeing could result in race being a factor in picking a monitor to oversee Boeing’s compliance with the agreement.
The plea deal had called for an independent monitor to be named to oversee Boeing’s safety and quality procedures for three years. Under the agreement announced Friday, Boeing must retain an “independent compliance consultant” who will make recommendations for “further improvement” and report back to the government, according to court papers.
US Justice Department reaches deal to allow Boeing to avoid prosecution over 737 Max crashes
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US Justice Department reaches deal to allow Boeing to avoid prosecution over 737 Max crashes
- Under the agreement announced Friday, Boeing must retain an “independent compliance consultant” who will make recommendations for “further improvement”
Bangladesh mourns Khaleda Zia, its first woman prime minister
- Ousted ex-premier Sheikh Hasina, who imprisoned Zia in 2018, offers condolences on her death
- Zia’s rivalry with Hasina, both multiple-term PMs, shaped Bangladeshi politics for a generation
DHAKA: Bangladesh declared three days of state mourning on Tuesday for Khaleda Zia, its first female prime minister and one of the key figures on the county’s political scene over the past four decades.
Zia entered public life as Bangladesh’s first lady when her husband, Ziaur Rahman, a 1971 Liberation War hero, became president in 1977.
Four years later, when her husband was assassinated, she took over the helm of his Bangladesh Nationalist Party and, following the 1982 military coup led by Hussain Muhammad Ershad, was at the forefront of the pro-democracy movement.
Arrested several times during protests against Ershad’s rule, she first rose to power following the victory of the BNP in the 1991 general election, becoming the second woman prime minister of a predominantly Muslim nation, after Pakistan’s Benazir Bhutto.
Zia also served as a prime minister of a short-lived government of 1996 and came to power again for a full five-year term in 2001.
She passed away at the age of 80 on Tuesday morning at a hospital in Dhaka after a long illness.
She was a “symbol of the democratic movement” and with her death “the nation has lost a great guardian,” Bangladesh’s interim leader Muhammad Yunus said in a condolence statement, as the government announced the mourning period.
“Khaleda Zia was the three-time prime minister of Bangladesh and the country’s first female prime minister. ... Her role against President Ershad, an army chief who assumed the presidency through a coup, also made her a significant figure in the country’s politics,” Prof. Amena Mohsin, a political scientist, told Arab News.
“She was a housewife when she came into politics. At that time, she just lost her husband, but it’s not that she began politics under the shadow of her husband, president Ziaur Rahman. She outgrew her husband and built her own position.”
For a generation, Bangladeshi politics was shaped by Zia’s rivalry with Sheikh Hasina, who has served as prime minister for four terms.
Both carried the legacy of the Liberation War — Zia through her husband, and Hasina through her father, Sheikh Mujibur Rahman, widely known as the “Father of the Nation,” who served as the country’s first president until his assassination in 1975.
During Hasina’s rule, Zia was convicted in corruption cases and imprisoned in 2018. From 2020, she was placed under house arrest and freed only last year, after a mass student-led uprising, known as the July Revolution, ousted Hasina, who fled to India.
In November, Hasina was sentenced to death in absentia for her deadly crackdown on student protesters and remains in self-exile.
Unlike Hasina, Zia never left Bangladesh.
“She never left the country and countrymen, and she said that Bangladesh was her only address. Ultimately, it proved true,” Mohsin said.
“Many people admire Khaleda Zia for her uncompromising stance in politics. It’s true that she was uncompromising.”
On the social media of Hasina’s Awami League party, the ousted leader also offered condolences to Zia’s family, saying that her death has caused an “irreparable loss to the current politics of Bangladesh” and the BNP leadership.
The party’s chairmanship was assumed by Zia’s eldest son, Tarique Rahman, who returned to Dhaka just last week after more than 17 years in exile.
He had been living in London since 2008, when he faced multiple convictions, including an alleged plot to assassinate Hasina. Bangladeshi courts acquitted him only recently, following Hasina’s removal from office, making his return legally possible.
He is currently a leading contender for prime minister in February’s general elections.
“We knew it for many years that Tarique Rahman would assume his current position at some point,” Mohsin said.
“He should uphold the spirit of the July Revolution of 2024, including the right to freedom of expression, a free and fair environment for democratic practices, and more.”
