Senator: Defense IG has 'serious' concerns about tanker deal

Senate Armed Services Committee Chairman John Warner, R-Va., said Wednesday a Pentagon inspector general's probe of an Air Force plan to lease Boeing KC-767 tanker aircraft revealed "serious audit concerns" that must be addressed before the committee can reach a conclusion on the controversial deal.

"The Air Force needs a tanker aircraft," Warner said, "but at this point in time, much needs to be done."

After a closed briefing by Pentagon Inspector General Joseph Schmitz, Warner joined Armed Services ranking member Carl Levin, D-Mich., and Sen. John McCain, R-Ariz., in telling reporters Schmitz would release a redacted version next week of his report's executive summary.

The summary is expected to contain eight recommendations for proceeding with the deal, any one of which could pose potential problems for the Air Force plan to lease up to 20 Boeing tankers and purchase another 80, according to a Senate staff member.

While the inspector general's report found no compelling reason to kill the tanker deal, it indicated the Pentagon should not proceed with the program until it resolves issues "pertaining to procurement strategy, acquisition and statutory requirements," the staff member said.

A second Senate aide said the inspector general's recommendations to make this a sound deal for American taxpayers could give rise to concern about the existing lease agreement.

Warner said the committee will hold a hearing in early May after the anticipated April 30 release of three additional tanker studies now under way by the National Defense University, the Defense Science Board and the Pentagon's Office of the General Counsel. In addition, the Pentagon's Defense Criminal Investigative Service continues to work with the Justice Department in a probe of suspected wrongdoing related to the lease deal.