RTX Corp., parent company of aerospace and defense giant Raytheon, disclosed an internal investigation launched into potential improper payments in connection with contracts in the Middle East found indications of misconduct.
Raytheon has been under investigation by the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) since 2019 and 2020, respectively, regarding “whether there were improper payments made by Raytheon Company, our joint venture known as Thales-Raytheon Systems … or anyone acting on their behalf in connection with TRS or Raytheon Company contracts in certain Middle East countries since 2014.” The company’s latest update, contained in an annual report filing Monday, suggested its probe uncovered such evidence.
“The company maintains a rigorous anti-corruption compliance program and continues … to examine through our own investigation whether there were any improper payments or any such conduct that was in violation of Raytheon Company policy,” it said. “Although the investigation of these issues remains ongoing, information indicating that such conduct has occurred with respect to certain contracts has been identified.”
A report from the Wall Street Journal in 2021 indicated the investigations are focused on dealings in Qatar that might have violated the Foreign Corrupt Practices Act.
RTX said it is continuing to cooperate with the SEC and DOJ and remains unable to predict the outcomes of the agencies’ respective inquiries.