The Eyak Corporation Responds to Congressional Request for DHS Information on EyakTek

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Oct 13, 2011, 05:54 ET

CORDOVA, Alaska, Oct. 13, 2011 /PRNewswire/ -- The Eyak Corporation today reasserted its commitment to following strict ethical and legal compliance with all federal rules and regulations regarding its business activities and contracting services on behalf of the U.S. government. The company's announcement follows last week's indictment of a former Eyak Technology (EyakTek) employee who, for his own benefit, allegedly conspired with others outside EyakTek to defraud the U.S. government. The announcement also follows a recent request by a Congressional representative to the Department of Homeland Security (DHS) for information on EyakTek and the past activities of another EyakTek subsidiary company.

"The alleged actions of EyakTek's former employee, Harold Babb, constitute a reprehensible breach of trust, and violated an ethical and fiduciary responsibility to serve the interests of the U.S. government," stated Rod Worl, Chief Executive Officer of The Eyak Corporation and President of EyakTek. "His alleged conduct in no way reflects the operations or corporate culture of The Eyak Corporation or any of our subsidiary companies. We will continue to assist the U.S. Department of Justice in its pursuit and prosecution of all those involved in this scheme to defraud our country." Eyak noted that last week's indictments involve the alleged activities of Mr. Babb and those he allegedly conspired with at the U.S. Army Corps of Engineers – as well as another as-yet unidentified company -- to enrich themselves at the expense of the U.S. government.

In a letter dated October 12, a Congressional representative requested information from DHS regarding other EyakTek federal contracts, including information relating to EyakTek subsidiary, EG Solutions (EGS), work on the DHS FirstSource contract, and Mr. Babb's activities while employed at EGS. The alleged scheme detailed in last week's indictments has no connection whatsoever to EGS's performance on the FirstSource contract. EGS remained in compliance with all federal rules and regulations regarding its work on the FirstSource contract, evidence of which was provided in a detailed response to the SBA following its suspension in November 2010 on an unrelated matter. All EGS billings under the FirstSource contract were appropriate; they reflected products and services provided to the government at fixed prices following competition among approved FirstSource vendors. Furthermore, while an employee of EGS, Mr. Babb was not involved in the sourcing or administration of individual orders, was not involved in reporting on the FirstSource contract, nor was he involved in the selection of teaming members or suppliers related to individual contract orders. EGS fully cooperated with the U.S. Government in its review of those matters.

Mr. Worl concluded: "We applaud the efforts of the U.S. Department of Justice to hold those who participated in this alleged scheme personally accountable for their actions."

For more information about the Eyak companies, please visit our websites at eyakcorporation.com and eyaktek.com.