Corporate Integrity Project

Scandals involving Enron, Tyco, Global Crossing, Boeing and WorldCom have shaken confidence in America's corporate leaders. NLPC seeks to promote integrity in corporate governance, including honesty and fair play in relationships with shareholders, employees, business partners and customers. In doing so, NLPC places special emphasis on:

  • Asserting that the social responsibility of the corporation is to defend and advance the interests of the people who own the company, the shareholders. True responsibility is fidelity to one’s own mission, not someone else’s, or someone else’s political agenda.
  • Exposing the seeking of influence on public officials by corporations, which is the inevitable result of high levels of government spending and intervention in the marketplace.
  • Combating practices that undermine the free enterprise system, including philanthropic giving to groups hostile to a free economy.
Mark Modica
05/20/2014 - 10:25

GM brake linesNLPC is requesting that General Motors recall vehicles with a dangerous rusted brake line defect. The request is based on a National Highway Traffic Safety Administration (NHTSA) investigation of GM trucks for model years 1999 to 2003 that included Chevy Silverados and GMC Sierras. We are also asking NHTSA to order a recall without further delay.

Further investigation finds that NHTSA has received many additional complaints for newer model GM trucks that appear to be afflicted with the same defect.

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Peter Flaherty
05/19/2014 - 08:30

David FriedmanToday, I sent this letter to David Friedman (in photo), Acting Administrator of the National Highway Traffic Safety Administration (NHTSA):

On March 30, 2010 NHTSA's Office of Defect Investigations opened Preliminary Investigation PE10010, into corrosion-related brake line failures in General Motors full-size pickups made between 1999 and 2003. In January 2011, that investigation was upgraded to ODI Engineering Analysis EA11001, which in part appears to determine if corrosion-related brake line failures were a General Motors-specific issue or industry-wide. The "Engineering Analysis" investigation remains open to this day after over three years, making it NHTSA's longest-running open investigation, and the second longest investigation in its history.

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NLPC Staff
05/18/2014 - 21:05

Correll photoWashington's metaphorical "revolving door" keeps on spinning. A recent case involving a former Air Force procurement official is at the center of a high-stakes dispute over the launching of rockets into space, and the huge contracts that go with them.

From March 2011 to January of this year, Roger "Scott" Correll (in photo) was the official at the Pentagon responsible for procuring launch services from private companies. One of his last official acts before his "retirement" in January was to oversee a deal with a company called United Launch Alliance (ULA) for a whopping 36 future launches. ULA is a joint venture of Boeing and Lockheed.

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Mark Modica
05/14/2014 - 09:23

Alan AdlerGM's initial response to our request yesterday for a recall of vehicles with a brake corrosion problem is completely unacceptable. It was contained in a Detroit News article about our call for the carmaker to recall 6 million pickups and SUVs that are the subject of an open investigation by the National Highway Traffic Safety Administration (NHTSA).

GM spokesman Alan Adler, in photo, claimed that the brake corrosion problem is industry-wide, and suggested it was a normal wear-and-tear issue. He told the News:

The trucks in question are long out of factory warranty and owners manuals urge customers to have their brake lines inspected the same way brake pads need replacement for wear. In fact, more than 20 states require brake-line inspections at one- or two-year intervals or when stopped for a violation.

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Peter Flaherty
05/13/2014 - 12:03

Mary BarraHere's the text of a letter I sent today to GM CEO Mary Barra. As I indicate, we welcomed her affirmative response to our request last month for a recall of a separate set of vehicles with a different problem.

Dear Ms. Barra:

We ask General Motors (the Company) to recall model years 1999 through 2003 for the following vehicles: Chevrolet Avalanche, Chevrolet Silverado, Chevrolet Suburban, GMC Sierra, GMC Tahoe and GMC Yukon.

These six million pickups and SUVs endanger the lives and safety of their owners due to a loss of braking related to brake line corrosion.

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Mark Modica
05/12/2014 - 10:49

Silverado rusted brakesIt looks like there is yet another problem with GM vehicles that has been left unresolved. Chevy Silverados and other GM vehicles are being investigated for brake line corrosion by the National Highway Traffic Safety Administration (NHTSA). NHTSA reports 890 complaints for brake failure resulting from "brake pipe corrosion."

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Paul Chesser
04/29/2014 - 22:34

Duke EdwardsportAfter the global warming-battling Edwardsport coal gasification power plant used more power than it generated during the September-to-November timeframe, earlier this month information filed with the Indiana Utility Regulatory Commission showed the Duke Energy facility operated at less than 1 percent of capacity in February.

As Duke wants to recover $1.5 million in costs related to the plant, the state office that advocates for its customers – the Office of the Utility Consumer Counselor – wants IURC to more closely scrutinize why Edwardsport’s operation has been such a miserable failure. The much-delayed and fought-over plant had a $1.4 billion cost overrun and as a result is adding an average 16 percent increase to Hoosier State customers’ electric bills.

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Mark Modica
04/25/2014 - 09:55

head in sandGeneral Motors reported lackluster first quarter earnings' results as the company took a $1.3 billion charge related to recalls. Most of the expenses for the approximately 7 million vehicles recalled, however, were not actually incurred during the first quarter.

In addition, the $1.3 billion figure is far lower than what the recall will cost GM. The power steering recall alone of about 1.5 million vehicles (which was prompted by NLPC's exposure of the recall delay) is likely to cost more than that. The estimated cost for replacement of power steering columns is in the area of $1,300 per unit, bringing the total for this single recall to roughly $2 billion. That doesn't include loaner cars.

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Mark Modica
04/21/2014 - 09:18

crashed carGeneral Motors still has many questions to answer regarding the recall scandal that saw at least 13 lives lost in accidents involving vehicles with deadly ignition switch defects. GM waited over 10 years to recall the defective vehicles. The company now needs to answer for a seeming lack of compassion for the victims. GM initially blamed drivers of defective vehicles involved in fatal crashes by falsely implying that all of the accidents occurred while driving off-road.  

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Peter Flaherty
04/15/2014 - 15:35

SurveyToday we released the results of a new survey that reveals the majority of consumers believe General Motors deliberately tried to cover up the deadly recall delay of 1.6 million vehicles. The survey findings also show consumers believe the federal government bailout in 2009 allowed GM to avoid liability for the deaths, and has also helped the company avoid making necessary changes to improve its corporate culture and business operations. 

The survey, conducted on April 10, 2014 by McLaughlin and Associates, was released at the 2014 New York International Auto Show in the wake of GM CEO Mary Barra's testimony before House and Senate Committee hearings on the company's decade-late vehicle recall that is connected to 13 deaths and dozens of injuries.

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