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FAA's audit processes not comprehensive enough, says

report

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FAA agrees with 16 recommendations to improve oversight

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FAA has not enforced timely resolution of undue pressure

allegations

By David Shepardson

WASHINGTON, Oct 11 (Reuters) - A federal watchdog on

Friday criticized the Federal Aviation Administration's

oversight of Boeing ( BA ) airplane production, saying it does

not have an effective system to oversee the planemaker's

individual manufacturing facilities.

The Transportation Department's Office of Inspector General

said in a report the FAA's current audit processes "are not

comprehensive enough to adequately identify key discrepancies

and noncompliances within the Boeing ( BA ) production line" and said

the FAA has not addressed longstanding weaknesses in Boeing's ( BA )

oversight of suppliers despite long-known risks.

The FAA's oversight of Boeing ( BA ) has gotten new scrutiny after

a door plug missing key bolts blew off a new Alaska Airlines

737 MAX 9 jet at 16,000 feet in January, prompting the

Justice Department to open a criminal investigation.

The report issued 16 recommendations. The FAA said it

agrees with all of them and "is committed to continuously

improving our oversight processes." The FAA added it "is

currently conducting a comprehensive, systemwide review of our

oversight models."

The report said the FAA has not been able to resolve allegations

of undue pressure on Boeing ( BA ) employees acting on FAA's behalf in

a timely fashion because it has not enforced requirements that

Boeing ( BA ) provide sufficient information on the allegations.

Boeing ( BA ) did not immediately comment.

The report that reviewed oversight of the Boeing 737 and

787 said the FAA "has yet to move from a reactive approach

focused on addressing individual manufacturing issues to a more

proactive, data-driven model to identify and address risk within

Boeing's ( BA ) manufacturing processes at all levels."

A series of reports in recent years have raised concerns about

the FAA's oversight of Boeing ( BA ). Last month, a U.S. Senate panel

investigating Boeing's ( BA ) culture faulted oversight by the Federal

Aviation Administration citing documents obtained in an ongoing

investigation.

FAA Administrator Mike Whitaker said last month he will

revamp its own safety management program. He said previously the

agency was "too hands off" in oversight of Boeing ( BA ) before

January. He took the unprecedented step in January of barring

Boeing ( BA ) from expanding 737 MAX production until he satisfied they

have made significant quality improvements.