GOVERNMENT: GAO v G.M.

Before a House Armed Services subcommittee last week Lawrence J. Powers, the General Accounting Office's top auditor on defense contracts, leveled an angry blast at the nation's biggest corporation. Said Powers: on a $375.9 million contract to supply 599 F-84F Thunderstreak jet fighters to the U.S. Air Force between 1952 and 1955, General Motors made an actual profit of $42.2 million v. a "contemplated" profit of $24.8 million. Part of the $17.4 million extra, said Powers, could be attributed to good management. But $8,322,000 resulted from "overstating" and overestimating anticipated expenses. Three...

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