The Pentagon Chooses Politics Over Jobs and Fiscal Common Sense

On Friday November 18, 2011, the Obama Administration and the Pentagon made a decision to ship jobs overseas and put a critical defense project at risk, all funded by American tax dollars with zero benefit to American workers or the economy.  The disqualification of aircraft manufacturer Hawker Beechcraft from the Light Air Support and Light Attack and Armed Reconnaissance (LAS/LAAR) aircraft for the United States Air Force leaves only Brazil’s Embraer to fulfill the order.  With Embraer under investigation for corruption, it appears that politics is more important to this Administration than protecting the country and job creation   The Taxpayers Protection Alliance has voiced its support for Hawker Beechcraft over Embraer to Defense Secretary Leon Panetta in two separate letters (here and here) because of its ability to protect taxpayers and the country.

The decision by the Pentagon to exclude Hawker will most likely lead to the awarding of the contract to Embraer, which poses many questions.  First and foremost, if the Department of Defense (DOD) selects the Embraer plane, taxpayers will be risking taxpayer money at a time when there are no resources to spare.  The Obama Administration must do everything within its power to foster job creation and restore the country to economic prosperity.

Another major concern with the Embraer contract is the structure of the company. The Brazilian government has a “golden share” in Embraer, which essentially translates into operational control of the company.  Not only does this put tax dollars at risk with the Brazilian company, but also could threaten US national security.  This essentially gives the Brazilian government the ability to make decisions, including slowing or shutting down production for the company that cannot be stopped by other shareholders.

The Embraer contract would create jobs in Brazil and not here in the United States. The government should pursue options to keep defense contracting and production on American soil. If the DOD selects Embraer’s proposal for the LAS / LAAR contract, the government is simultaneously making the country less safe by relying on trade partners that cannot be trusted, while exporting jobs that should go to Americans to Brazil. Never has this been more apparent than now as the SEC is investigating Embraer for possible violation of the U.S. Foreign Corrupt Practices Act. This act prohibits companies from bribing foreign government officials or making other illegal payments to obtain or retain business. This is not a company that is worthy of American’s hard earned tax dollars.

The DOD had an opportunity to create jobs and protect taxpayers and decided to put tax dollars and national security at risk.