LCS shipbuilder president resigns amid US and Australian financial investigations February 22
The littoral combat ship Jackson pierside in San Diego, Calif. Construction costs on Jackson led to a $115 million write-off that is now the subject of international investigations. (Lt. Miranda Williams/U.S. Navy) WASHINGTON – The head of Alabama shipbuilder Austal USA has resigned amid investigations from U.S. and Australian authorities into a $115 million loss the company posted in 2016 that was tied to the builder’s Independence-class littoral combat ship program. The company announced in a press release Monday that Austal USA President Craig Perciavalle has resigned and been replaced in the interim by Rusty Murdaugh, the company’s chief financial officer.
Leadership change at Austal USA: CEO has resigned, shipbuilder says
Updated Feb 22, 2021;
Posted Feb 22, 2021
From left: U.S. Rep. Bradley Byrne, his wife Rebecca Byrne and Austal USA President Craig Perciavalle applaud remarks at the christening ceremony for the future USS Mobile on Dec. 7, 2019. (Lawrence Specker | LSpecker@AL.com)Lawrence Specker | LSpecker@AL.com
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Shipmaker Austal announced Monday that it had accepted the resignation of Austal USA President Craig Perciavalle following U.S. and Australian investigations into “historical matters” in the Littoral Combat Ship program.
Employees at Austal USA’s Mobile shipyard were notified by text Monday afternoon that President Craig Perciavalle had resigned. A company spokesman confirmed the contents of the text, which also said that Austal USA Chief Financial Officer Rusty Murdaugh had been named interim president and would continue to serve as CFO, a post he has held four years.
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Australian-based shipbuilder Austal has announced the resignation of Austal USA president Craig Perciavalle amid ongoing investigations in the United States and Australia into the company’s Littoral Combat Ship (LCS) program dating back to before mid-2016.
Austal USA, a wholly owned subsidiary of Austal Limited (ASX:ASB), is a major defense contractor and is responsible for building the Independence-class Littoral Combat Ships (LCS) and multipurpose Expeditionary Fast Transport (EPF) for the U.S. Navy.
Austal said the investigations by U.S. authorities, namely the Department of Justice and the Securities Exchange Commission, concerns the write back of work in progress (WIP) attributable to the LCS program in July 2016, the procurement of certain ship components, and the charging and allocation of labor hours.
The head of Alabama-based shipbuilder Austal USA has stepped down amid continuing investigations by U.S. and Australian regulatory agencies linked to the Navy's troubled Littoral Combat Systems (LCS) program.