Raytheon pays $25 million export settlement

Raytheon has agreed to pay $25 million to settle US federal civil charges relating to a 1994 contract to sell the government of Pakistan a communications radio system.

Raytheon has settled a United States Justice Department civil complaint about an alleged export violation concerning a 1994 contract to sell a communications radio system to the government of Pakistan.

In the settlement, Raytheon acknowledges that it failed to determine whether the radio system was for commercial or military use, but denies that the company intentionally violated any US export laws as stated in the civil complaint. The radio system was not delivered.

Under terms of the settlement, Raytheon will pay a $25 million civil penalty, some of which will be used to improve its export compliance program, including the appointment of an outside special compliance officer to oversee export activities principally at the communications segment of Raytheon’s Network Centric Systems business.

The contract in question was for a modified version of a troposcatter radio system developed in the 1970s for the US Air Force.

In the 1990s, Raytheon invested approximately $2 million in an effort to develop a commercial version by removing functions unique to military users and designing the system to commercial standards.