GM Discloses Grand Jury Probe of EDS Contracts

WASHINGTON —  General Motors Corp. said Tuesday that a federal grand jury is investigating possible irregularities in two Navy contracts held by GM’s Electronic Data Systems Corp. unit.

In a Securities and Exchange Commission filing, GM said a federal grand jury in the Eastern District of Virginia is probing “possible irregularities or improprieties which may have occurred” in connection with Electronic Data’s supply of data-processing services and equipment to the Navy.

Electronic Data said it is cooperating with authorities in the investigation.

“EDS has been informed that this proceeding is not part of the current and widely publicized grand jury investigation relating to alleged misconduct by contractors and consultants in the defense industry procurement process,” General Motors told the SEC.

While Electronic Data is a subject of the investigation, it was advised that it is not the “target” of the investigation, the SEC filing said. Electronic Data told the SEC that it is responding to the grand jury’s document subpoenas.

Electronic Data is also conducting its own review of the matter, General Motors said.