32 Kenyan families are set to receive more than Ksh4.8 billion payout after the US Department of Justice (DOJ) secured fines from the American plane manufacturer, Boeing, over the Ethiopian Airlines March 2019 crash.
A statement by the DOJ on Thursday, January 7 indicated that the Boeing Company (Boeing) had entered into an agreement with the US government to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG).
In the agreement, the Boeing Company agreed to pay $2.5 billion with $500 million (Ksh52 billion) set to benefit the families of the crash victims.
Out of the compensation settlements, each of the 32 Kenyan family is set to pocket $1.4 million (Ksh153 million) which totals over Ksh4.8 billion.
“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers.
"Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception,” stated Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division.
"This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries," he added.
The plane, a 737 MAX 8 which was travelling to Nairobi from Ethiopia crashed near Bishoftu town killing all the passengers and crew that were on board.
“We continue to mourn alongside the families, loved ones, and friends of the 346 individuals who perished on Lion Air Flight 610 and Ethiopian Airlines Flight 302," noted a statement from the DOJ.
The settlement comes just weeks after one of the Kenyan families separately pocketed Ksh335 million after they lost several relatives in the crash.
At the time, lawyers from Ribbeck Law Chartered alluded that the compensation amount would not be a major dent to the Boeing Company as most of the settlements would be paid by their insurance companies.
The lawyers further noted that the settlement had spared the Kenyan family years of litigation.
