BA Boeing Co

By Nancy A. Youssef and Gordon Lubold 

The Defense Department Office of Inspector General has concluded that evidence doesn't show that acting Defense Secretary Pat Shanahan sought preferential treatment for his longtime former employer, Boeing Co., while serving in government, removing a major hurdle for his formal nomination to the post.

President Trump could nominate Mr. Shanahan within days to be the permanent defense secretary, U.S. officials said, although they stressed it remains unclear what Mr. Trump will do.

The Pentagon's inspector general initiated an investigation last month after complaints that Mr. Shanahan, the former deputy defense secretary, aided Boeing during meetings by promoting the company and disparaging competitors. Mr. Shanahan became acting secretary of defense in January following the abrupt departure of Jim Mattis, who resigned as secretary over policy differences with Mr. Trump.

A complaint against Mr. Shanahan was filed March 13 by an independent watchdog and advocacy group, citing news reports in charging that Mr. Shanahan during meetings had made statements promoting his former employer before subordinates.

According to the report released Thursday morning the investigation concluded that evidence didn't show Mr. Shanahan favored Boeing. The investigation had a narrow focus, officials said, examining Mr. Shanahan's conduct during a series of meetings and during other events Mr. Shanahan attended.

The findings were reached relatively quickly, as some investigations by the inspector general's office last for months. The inspector general's office didn't immediately respond to a request for comment.

Mr. Shanahan was briefed on the inspector general's findings late Wednesday, officials said.

If nominated, Mr. Shanahan still faces a confirmation vote in the Senate, where some members have expressed concern over his limited policy experience as a long-serving industry executive.

Mr. Trump, while believed to favor Mr. Shanahan as a defense chief, also has maintained that he enjoys the flexibility of having individuals serving in acting capacities.

Mr. Shanahan is the longest-serving acting defense secretary in the department's history. He served previously as deputy defense secretary for 17 months.

Write to Nancy A. Youssef at nancy.youssef@wsj.com and Gordon Lubold at Gordon.Lubold@wsj.com

(END) Dow Jones Newswires

April 25, 2019 10:49 ET (14:49 GMT)

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