Vanderbilt Television News Archive

(Studio) Report introduced
REPORTER: Dan Rather

(Groton, Connecticut) Former General Dynamics executive Takis Veliotis' allegations against chairperson David Lewis, basis of investigations against General Dynamics, examined. [October 1981, LEWIS - praises Veliotis.] Veliotis' secret recording of phone conversations with regard to Lewis' alleged hidden cost overruns on Trident submarine contract examined. [Voices of VELIOTIS and vice president G. MacDONALD - discuss phony press release approved by Lewis in effort to halt company stock's decline.] SEC reported reopening investigation of General Dynamics. [Representative John DINGELL - notes potential stock manipulation with such false press releases; explains.] Trident's cost overruns outlined. [Defense Department investigator A. Ernest FITZGERALD - notes company tried collecting baby-sitting and country club fees under government contract.] Expenses questioned by Navy auditors listed on screen, discussed; company executive Henry Crown mentioned. [DINGELL - comments on company's alterations of records necessary for auditing.] General Dynamics' response to allegations quoted on screen. [Navy Secretary John LEHMAN - claims to have cracked down on General Dynamics.] Lehman reported awarding company a new Trident submarine contract despite company's admission of poor workmanship resulting in cost overruns. Assistant Navy secretary George Sawyer, who negotiated new contract, noted now executive vice president at General Dynamics. [Senator William PROXMIRE - cites perception of payoffs.] Prof it rate on Trident submarines mentioned. [DINGELL - doesn't see indications of General Dynamics' remedying situation.] Agencies and Congress cmtes. currently investigating listed on screen.
REPORTER: Rita Braver