Whistleblowers and the Fight Against Corruption
Corporate retaliation against whistleblowers must end
The Untold Story of Boeing Whistleblowers
The Tragic Fate of Mitch Barnett
Vicky Stokes was at home in Alexandria, Louisiana, when she learned about the death of another Boeing whistleblower, Josh Dean. Dean, a former quality inspector for Spirit AeroSystems, died from a rare bacterial infection in April 2023. Dean had been vocal about manufacturing defects at Boeing that were ignored by his managers.
This news was particularly poignant for Vicky because her son, Mitch Barnett, had also been a Boeing whistleblower. Mitch had worked for Boeing for over 30 years, raising alarms about safety issues that were consistently ignored. His relentless pursuit of truth and accountability led to his retirement in 2017, following severe harassment and stress-induced health issues.
In early 2024, Mitch was found dead in his car, a suspected suicide, although many believe Boeing's persistent harassment was a significant contributing factor. Mitch's dedication to safety, despite the immense personal cost, underscores the critical role whistleblowers play in exposing corporate malfeasance.
Boeing's Cultural Shift
Boeing's shift from engineering excellence to financial performance, particularly after its merger with McDonnell Douglas, led to a decline in quality and safety standards. The introduction of the 787 Dreamliner exemplified this change, as Boeing outsourced much of its production, resulting in delays and quality issues.
Mitch Barnett was deeply disillusioned by these changes. He witnessed firsthand how Boeing's senior management in South Carolina implemented the "multi-function process performer" (MFPP) system, allowing mechanics to inspect their own work. This practice, Mitch argued, violated FAA regulations and common sense, leading to numerous safety issues.
Despite his efforts to highlight these problems, Mitch faced severe retaliation. He was demoted, isolated, and his performance reviews were unjustly criticized. His health deteriorated, and he ultimately filed an AIR-21 complaint, alleging retaliation and safety violations.
The Broader Implications
Mitch Barnett's story is a stark reminder of the personal toll of whistleblowing. His case highlights the need for stronger protections for whistleblowers and a cultural shift within corporations to prioritize safety and integrity over profits. The tragic outcomes for whistleblowers like Mitch and Josh Dean call for comprehensive reforms to support and protect those who dare to speak out against corruption.
Supreme Court Ruling on Anticorruption Law
The recent Supreme Court decision to strike down part of a federal anticorruption law has significant implications. The law, which made it a crime for state and local officials to accept gifts valued over $5,000 from donors who had received government benefits, was overturned in a 6-3 vote. The case involved a former Indiana mayor who accepted a $13,000 payment after helping a local dealership win city contracts.
Justice Brett M. Kavanaugh, writing for the majority, argued that the law distinguished between bribery and gratuities. The ruling limits the scope of the federal anticorruption law, allowing officials to accept gifts for past favors unless there's proof of an illicit deal. The dissenting justices warned that this decision undermines the integrity of public institutions by allowing officials to profit from their positions without immediate repercussions.
This ruling could have far-reaching consequences, affecting the 20 million state and local officials covered by the law. It underscores the need for robust state-level regulations to fill the gaps left by the federal law.
U.S. Healthcare Firm Embroiled in Malta Corruption Scandal Spent Millions on Private Spies
The Scandal Unveiled
Steward Health Care, a U.S. healthcare operator, is at the center of Malta's biggest-ever corruption scandal. The company spent over $7 million on private intelligence firms to conduct surveillance and disinformation operations against its critics and even its own employees. These operations were funded by taxpayer money through Steward's Maltese division.
Steward clashed with the Maltese health minister over its hospital management agreement. To protect its interests, Steward hired CT Group and Audere, two U.K.-based private intelligence firms. CT Group created a report alleging that the minister had taken a large bribe, which was circulated to journalists. Audere conducted "false flag" operations and spied on a critic who ran a financial research company, as well as a former Steward employee suspected of leaking financial information.
The intelligence operations were coordinated by senior Steward executives, who prioritized these activities even as bills for critical medical services in their U.S. hospitals went unpaid. In 2022 alone, CT Group earned $2.16 million from these operations.
Targeting Malta's Health Minister
A key target of Steward's intelligence campaign was Chris Fearne, Malta's health minister. When payments to Steward were delayed due to disputes over contract compliance, Steward's frustration grew. The company contemplated suing Fearne and Malta's government in U.S. courts, alleging extortion and solicitation of bribes.
Instead of pursuing legal action, Steward launched "Project Albacore," directing CT Group to gather and leak information about Fearne. This campaign involved fabricating a bank record to falsely implicate Fearne in bribery. However, the document was debunked by experts and investigative journalists, revealing it as a clumsy forgery.
Despite the disinformation campaign failing to incriminate Fearne, the operation exemplifies the lengths to which Steward went to protect its interests. Fearne described the campaign as an attack on Malta's integrity and insisted on an investigation, which found no evidence to support the allegations.
Surveillance and Harassment
Fraser Perring, a British businessman and critic of Steward, experienced intense surveillance and harassment. His company, Viceroy Research, had published a report accusing Steward of financial fraud. Perring and his family were secretly filmed, followed, and subjected to a disinformation campaign on social media.
Documents obtained by OCCRP show that Audere controlled a Twitter account dedicated to smearing Perring and directed surveillance operations against him. The personal information of Steward's former employee, codenamed "Pudding," was also extracted and used in an attempt to gather compromising material.
These tactics highlight the ethical breaches in Steward's efforts to silence dissent and control the narrative surrounding its operations. The use of taxpayer money to fund such activities underscores the need for stringent oversight and accountability.
Broader Implications
The Steward Health Care scandal in Malta is a glaring example of corporate malfeasance and misuse of taxpayer funds. The company's willingness to engage in unethical and possibly illegal activities to protect its interests calls for robust regulatory frameworks to prevent such abuses. This case also emphasizes the importance of investigative journalism and transparency in holding powerful entities accountable.
The Reluctant Whistleblower: Gerald Zirnstein and "Pink Slime"
Gerald Zirnstein, a former USDA scientist, became an involuntary whistleblower when he coined the term "Pink Slime" to describe a processed meat product. Zirnstein's internal email, which he thought was private, became public, sparking widespread consumer outrage and significant industry changes.
Zirnstein's term highlighted the use of ammonium hydroxide-treated beef trimmings in ground beef, leading major supermarket chains and fast-food companies to ban the product. Despite his reluctance, Zirnstein's whistleblowing brought attention to food safety issues and demonstrated the power of consumer advocacy in driving change.
Closing Notes
The stories in this newsletter underscore the vital role whistleblowers play in safeguarding public interest. Their courage and dedication often come at a high cost, but their impact is profound.