Ethics probe clears Shanahan, setting stage for potential nomination

The Defense Department inspector general has completed an ethics investigation into acting Defense Secretary Pat Shanahan, concluding that he did not improperly favor Boeing, his former employer.

"During our investigation, we interviewed Mr. Shanahan and 33 witnesses," according to an IG report released today. "We did not substantiate any of the allegations. We determined that Mr. Shanahan fully complied with his ethics agreements and his ethical obligations regarding Boeing and its competitors."

The IG states that investigators interviewed the "most senior officials in the DoD; witnesses who had frequent interaction with Mr. Shanahan; and witnesses who were involved in the review, consideration, or decisions to purchase or budget for Boeing and Lockheed Martin systems related to the allegations."

Investigators also reviewed more than 5,600 pages of unclassified documents and approximately 1,700 pages of classified documents related to the allegations and the "relevant major defense acquisition systems."

The IG investigation, which began March 15, stemmed from a complaint filed against Shanahan by the Citizens for Responsibility and Ethics in Washington, which cited media reports alleging he made "numerous statements" promoting his former employer Boeing and disparaging the company's competitors, specifically Lockheed Martin, in the presence of subordinates.

The report states that three anonymous allegations were also forwarded to the IG by Sen. Elizabeth Warren (D-MA). An additional anomymous allegation was also forwarded to the IG by the Senate Armed Services Committee.

"Secretary Shanahan has at all times complied with his ethics agreement, which screens Boeing matters to another DoD official and ensures no potential for a conflict of interest with Boeing on any matter," said Lt. Col. Joe Buccino, Shanahan's spokesman. "Secretary Shanahan remains focused on retooling the military for great power competition, executing the National Defense Strategy, and providing the highest quality care for our servicemembers and their families.”

Meanwhile, government officials say Shanahan's team is preparing for President Trump to nominate him as permanent defense secretary in the coming days.

The officials have said the investigation was the final obstacle between Shanahan and the nomination.

Shanahan, confirmed as the Pentagon's No. 2 official in July 2017, is the longest-serving acting defense secretary in U.S. history, stepping in Jan. 1 for former Defense Secretary Jim Mattis, who abruptly resigned in December over foreign policy differences with Trump.

In that time, Shanahan has made several significant policy moves, such as working to sell Congress on a final Space Force proposal; helping to prepare a budget request that added billions in additional defense spending; and assisting other senior administration officials to pivot Trump away from precipitous troop withdrawals in the Middle East.