By ABC Defence Correspondent Andrew Greene
Defence giant RTX has agreed to pay a US$200 million fine following 750 violations of the Arms Export Control Act and International Traffic in Arms Regulations. Photo: NurPhoto via AFP
- US defence giant RTX has been fined for a series of unauthorised defence technology exports to Australia and other nations.
- RTX employees were also found to have taken work laptops containing sensitive military secrets into Russia and Iran.
- Australia's Defence Department is not commenting on the settlement reached between RTX and the US government but insists it works closely with international partners on export regulations.
An American weapons company made illegal technology transfers to Australia at the same time some of its staff members breached strict US regulations by taking their work laptops containing sensitive military secrets into Russia and Iran.
Last week, defence giant RTX, formerly known as Raytheon, agreed to pay a US$200 million fine following 750 violations of the Arms Export Control Act and International Traffic in Arms Regulations (ITAR), including exchanging data and products with prohibited countries such as China.
US State Department documents reveal several of the voluntarily declared breaches involved exports "without authorisation" of "classified defence articles" to Australia and other nations, related to military programs such as Tomahawk Cruise Missile and the RIM-162 Evolved SeaSparrow Missile.
Other violations contained in the State Department's "Proposed Charging Letter" included "Unauthorised Exports Related to Sensitive Military Platforms Resulting from Misclassification" which were sent to Australia between 2017 and 2022.
During this time, several RTX employees also travelled to "proscribed destinations" such as Russia and Iran where they logged onto work laptops containing information on sensitive US military programmes including the Aegis Ballistic Missile Defence System, B-2 Spirit bomber and F-35 aircraft.
In a 2021 incident, an RTX worker logged onto his company laptop, which contained aircraft secrets, while visiting St Petersburg, then reported to the cybersecurity team several "alerts" that were "incorrectly dismissed" as false positives because of a transition to a new cybersecurity tool.
Another violation involved providing Chinese citizens information about "an aluminium display housing component of the F-22 Raptor Fighter Aircraft" in Shanghai, data that was later determined to be more sensitive than the RTX employees initially believed.
Since 2022, RTX's local subsidiary, Raytheon Australia, has been a strategic partner for the federal government's Guided Weapons and Explosives Ordnance Enterprise (GWEO), which aims to "accelerate the establishment of a local long-range guided weapons and munitions manufacturing industry".
The company was announced as an inaugural GWEO strategic partner by former defence minister Peter Dutton along with US company Lockheed Martin, but earlier this year Raytheon Australia's managing director and other members of the leadership team were sacked without public explanation.
There is no suggestion that the removal of Raytheon Australia's leadership team by RTX in late May this year is in any way linked to the corporation's export violations in the United States.
This week, Raytheon Australia referred all enquiries from the ABC about the US export violations to its parent company, RTX Corporation, but a global media relations spokesperson declined to answer specific questions.
"[Last month's] action is in line with the company's expectations, which we disclosed during the company's second-quarter earnings report on July 25, 2024," the RTX representative said.
An Australian Defence Department spokesperson said it was aware of the recent settlement between the US Government and RTX Corporation but it was "not appropriate" to comment on the details.
"Defence works across government and cooperates closely with international partners, including the United States, in regulating the export and supply of goods and technology controlled on the Defence and Strategic Goods List."
During a Senate Estimates hearing in June, Greens senator David Shoebridge demanded to know whether security clearances for the five Raytheon executives had been cancelled and whether the company had asked the department to do so.
In a response recently tabled to Federal Parliament, the department said the Australian Government Security Vetting Agency (AGSVA) did not publicly comment on individuals but: "Defence can confirm that Raytheon Australia has complied with all vetting and Defence Industry Security Program requirements."
Last month, the Albanese government announced that Norwegian company Kongsberg would become the third strategic partner for the GWEO project, but Defence Industry Minister Pat Conroy denies suggestions that the new European addition has essentially replaced Raytheon Australia.
"As we expand GWEO, it's natural that we align and form strategic partnerships with companies that supply significant parts of our inventory," Conroy said on Thursday while opening a Kongsberg factory.
"And those three companies clearly at the moment are Lockheed Martin, Raytheon and Kongsberg."
- ABC
