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NEW YORK (Reuters) - The U.S. Air Force has suspended paying incentive fees at all 21 military housing bases operated by landlord Balfour Beatty Communities following a Reuters-CBS News report that the company falsified maintenance records at an Oklahoma base to help it qualify for millions of dollars in bonuses.
The Air Force previously had suspended fees at three Balfour Beatty bases. Now, it has halted such payments at all 21 company sites after new allegations of improper handling of maintenance records arose at another base in Idaho, Mountain Home Air Force Base, John Henderson, the Air Force assistant secretary for installations, said in a statement to Reuters late on Friday.
Balfour Beatty will not receive any management incentive fees, which the company says are worth 13 percent of its $33 million in annual military housing net income, or about $4.3 million, until it provides the Air Force with an independent review of its maintenance and work order processes and ensures they meet all Air Force requirements.
“The Air Force has communicated the gravity of the situation to BBC leadership,” Henderson said in the statement.
The Air Force Office of Special Investigations and the Federal Bureau of Investigation are investigating allegations of fraud at three Balfour Beatty bases, the Air Force said: Tinker in Oklahoma, Fairchild in Washington and Travis in California. The new allegations at Mountain Home have also been referred to the Office of Special Investigations; the Air Force did not provide details on the alleged irregularities at the Idaho base.
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