Moog Aircraft committed a felony knowingly sourcing and installing the counterfeit safety parts onto Boeing planes compromising some 500 B737 and B777.
It took job security and probably life in speaking out a massive aviation counterfeiting crime. However that was what this FAA whistle blower, Charles Shi, did since as early as August,2015.
Below was the first internal whistle blowing letter to Mr. Kevin Walek dated 08/07/2015 that kicked off the long march of whistle blowing.(Mr. Kevin Walek was the Global Supply Chain Director of Moog Aircraft, the supervisor of Moog criminal suspect Mr. Joe Zou)
From: Shi, Charles [[email protected]]
Sent: Friday, August 7, 2015 8:38 PM
To: Walek, Kevin
Subject: concerns on Joe- confidential
Kevin, How are you!
I know this email might be very unexpected. However I need to take the step which is risky to my job security yet may do good to the company as a whole.
First Letter of Whistle Blowing at Moog Aircraft 07/08/2015
I don’t know how I should express my disappointment on how and where Joe is leading us, but I have serious concerns with his selfish interest exploding uncontained.
Please refer below email regarding NC(non conformance) we identified with this supplier New Hongji(NHJ) which was introduced by Joe since he joined Moog. Another incidence of traceability findings by Mr. XXX today is in the attached file.(Exh. Moog054, explained here.)
We learned from multiple sources that the only aerospace customer New Hongji had prior to Moog, B/E Aerospace has revoked their business with New Hongji because NHJ substituted raw material that was found out at customer’s end. I reported this to Joe and he simply brushed it off with no request for deep investigation.
He requested nothing to demand NHJ take actions to correct the traceability Non Conformances, but kept telling us it is normal for a supplier to have such issues!!!
What issues, traceability is the biggest issue that can cause immediate disaster to aerospace business.
I don’t believe we should have a leadership like Joe. In my mind, if a supplier can not keep traceability, we don’t even do business with them in the first place.
New Hongji is not ready for aerospace machining because they are basically an industrial machining house, their 95% business does not require traceability and now Moog parts are mixed with their industrial machining and it is unavoidable operators don’t mind traceability. They don’t have the resources to manage.
I repeatedly reminded Joe about it but he seems not hearing.
On the contrary, he was obsessed giving more business to NHJ and even requested NHJ use their 2nd tier supplier base which is nowhere near doing aerospace like Moog type of parts.
I visited their 2nd tier suppliers which has no training on tracebility, no awareness of aerospace requirement, and the owner of NHJ chose to outsource complete Moog parts to unknown 2nd tier sources with or without Joe’s knowledge.
I don’t know why Joe picked up NHJ and very head-strong using them and their 2nd tier suppliers, it is too risky compromising the integrity of Moog parts.
However one thing I assume is that Joe must have some private dealings or kick-back arrangement with Mr Li, the owner just because of the private ownership that allows them to do so.
If above statement can not support my allegation, another supplier Joe developed must be the solid case that he must have some personal interest in the deal.
XXX is an avic company making aero engines, no similarity in Moog part families, Joe worked very hard to give them the shaft business via a 3rd party , YYY which is merely a trader. Now Moog place PO to YYY that are executed by XXX. YYY does nothing but only collect payment from which I assume firmly Joe has some percentage. Actually from Joe’s past working experience, he has direct business with XXX, he already established relationship, why go through a trading company which is more costly to Moog and risky to demand liability once there is a major aircraft tragedy.
One reason Joe is looking down XCXC is that they are state owned companies that can not give kick-backs.
He might make some presentations to add some business to XCXC or other private owned companies, but his heart mainly is possessed in only the 2-3 he might have personal interest. It looks every quoting package must include NHJ no matter they can or can not accommodate.
Kevin, I’d like have a call with you at your convenience to talk things over.
Below is the NHJ 2nd tier audit report mentioned and attached in above letter.
Sender: Shi, Charles
Sent time: 2015-7-9 18:19
Send to: Joe zou ([email protected])
CC: [email protected]); Rong, Ron; M ([email protected])
Subject: New Hongji 2nd tier supplier visit and findings
Mr.XXX and I spend 2 days visiting 4 NHJ recommended 2nd tier suppliers, and this afternoon we sat down with CEO Mr Li Jian and his team sharing our findings.
All 4 - 2nd tiers are doing business with different industrial customers. Those customers may not have stringent traceability requirement like Aerospace does, This could cause their production system ill coping with what is required by Moog, leaving easily mix up of lots.
On top of that ,NHJ did not flow down Moog requirement for fear Moog might does direct business with 2nd tiers. I made it very clear NHJ must flow down all Moog requirement to 2nd tier before they can do Moog parts.
Generally speaking the 2nd tiers don’t have an awareness of what Moog is requiring in terms of NC (non conformance), lot control, and traceability management.
Even NHJ has blurred understanding and that is why we conducted improvement action 2 weeks ago trying to correct any variations of traceability management. If this fails, the result could be disastrous.
On Monday morning, one of the 2nd tier suppliers shipped to NHJ a number of rough machined P665A0039-02, the containers had no tags and traceability docs that is a major violation of aerospace norm.
The RM(raw material ) will be provided to 2nd tier suppliers, NHJ Raw Material buyer is somebody just joined NHJ who does not know Moog S275. (input S275, you shall get the file) 《S275 is Moog raw material requirement》
This morning we happened to hear a communication within themselves trying to buy one material from another company with a fake certificate. We felt this is something serious in violation of aerospace RM controls. In the afternoon, we requested Mr Li and his team to abide by S275 and buy materials only from reputable aerospace RM vendors with AS-9100 certification. This incident gives an impression NHJ may not have a sound understanding of aerospace RM requirement, So we make it very clear S275 must be followed.
When visiting 4- 2nd tier suppliers, asking each of them what Moog parts they are manufacturing. Only 2 acknowledged doing either certain ops or complete parts, but when we asked who is making CA81706 which Mr. XXX and Ron identified to have been outsourced, Nobody can tell us which 2nd tier is. This raised alarm as NHJ may take it into their own hand outsourcing Moog parts to unknown 2nd tiers, and this may raise red light right away.
I spoke in front of NHJ team including Mr Li, they need to be transparent with us outsourcing any parts or operations to any of their intended suppliers, if this fails, we’ll escalate it to top Moog management for further disposition.
Since 2nd tier supplier management process is something new to both NHJ and Moog, It may take more time to make the procedure completed.
So in this afternoon summary meeting, Mr Li agreed to hold new PO placement to NHJ for any parts they are planned to go with 2nd tier until the procedure and training and full compliance is in place.
Corrective actions are worked out to complete the 2nd tier supplier management, training of all people involved both at 2nd tier and NHJ. Before actions are in place. I do recommend hold-ups.
I’d appreciate you review above and give us directions how we proceed before communication with larger groups.
Charles Shi | Far East Asia Supply Chain Manager, Aircraft Group
direct +86-21- 5xxx02
e-mail [email protected]<mailto:[email protected]>
Mr. Kevin Walek and Mr. Jesse Mangual, VP of Quality, Moog Aircraft ordered an investigation upon my whistle blowing but unfortunately the investigation was badly mishandled by a Supplier Quality Lead.
I did my 2nd Moog internal whistle blowing 01/12/2016 to Mr. John Scannell of CEO of Moog Inc. and Mr. Mark Trabert, President of Moog Aircraft Group. The next day, I sent the same letter to FAA safety hotline starting my FAA whistle blowing. But the matter was covered up.
When alerting FAA of the matter, I copied Moog CEO, Aircraft Group president and VP of Supply Chain Kate Schaefer who flew all the way from East Aurora, New York to have me terminated. The next day after I whistle-blew to FAA, I received two calls from my SDEs, saying Joe Zou was informed of my FAA whistleblowing and Zou was asked (by Kate Shaefer) to lead "Moog internal investigation" before FAA came.( More shall be exposed by next article.)
The act of Moog top executive leaking my confidential FAA whistle blowing to the very suspect was meant to alert the Chinese counterfeiter to harm my life and shut me up for good. It was a despicable felony punishable by criminal justice!
Flying public, please join me in crying out for action before the Boeing plane safety threat become horrific tragedies.