Create a free starter account, or log in.

Get access to four free articles per month, as well as our Decisive Edge Newsletters and Daily News Bulletin.

Email Address

Password

Forgot your password? Reset by clicking here

Create a Password

[[ req.met ? '✓' : '•' ]] [[ req.text ]]

Re-enter Password

Passwords do not match

First Name

Last Name

Country

Confirm your account

Please enter the four-digit pin below that has been emailed to you.

Didn't receive the pin yet?

This pin expires in 20 minutes.

[[ error ]]

By creating an account, you agree to the Terms of Service and Privacy Policy.

Stay informed with Shephard's award-winning journalism. Unlock unlimited access and in-depth analysis with a corporate or individual subscription.

Explore your options here

US commissions latest Littoral Combat Ship, as Austal execs face fraud charges

3rd April 2023 - 19:00 GMT | by Harry Lye in London

RSS

USS Santa Barbara pictured ahead of its commissioning. (Photo: US DoD)

On April 1, the USN commissioned the latest Austal USA-built Independence-variant Littoral Combat Ship (LCS), USS Santa Barbara (LCS 32), shortly after a federal grand jury indictment charging three Alabama men with orchestrating an accounting fraud scheme at the shipbuilder.

According to court documents, the three men and their co-conspirators allegedly conspired to mislead shareholders and the public about Austal USA’s financial position.

In a press release, the Department of Justice (DoJ) said the defendants are alleged to have ‘artificially reduced and suppressed an accounting metric known as “estimate at completion” (EAC) in relation to multiple LCS ships that Austal USA was building for the US Navy'.

Suppression of the EACs allegedly falsely overstated the company’s reported earnings in public financial statements.

The EAC figures were allegedly manipulated in part by using ‘programme challenges’, or cost-savings goals, that were in

Already have an account? Log in