CORRECTED - CORRECTED-Northwest Airlines flout safety orders-US gvt report

(Corrects paragraph 7 to show Delta bought Northwest in 2008, not last year)

July 23 (Reuters) - Northwest Airlines flouted federal safety orders in the past but the Federal Aviation Administration did not hold it accountable, a U.S. government report said.

The report by the Transportation Department's inspector general's office followed allegations that FAA managers had colluded with the airlines they were charged with inspecting.

In 2008, FAA inspector Mark Lund charged that FAA inspectors who oversaw Northwest's safety requirements had allowed the airline to avoid civil penalties or legal action by accepting voluntary disclosures of non-compliance in contravention of FAA policy.

The report was made public on Thursday by the U.S. Office of Special Counsel (OSC) which handles whistleblower complaints.

"The report substantiated Lund's complaints that FAA inspectors in charge of Northwest failed to provide effective oversight of airline's safety process, resulting in the carrier's continued systematic non-compliance of safety rules."

FAA had proposed disciplinary action against two Northwest managers, the OSC said.

Northwest was bought by Delta Air Lines Inc (DAL.N) in 2008, creating the world's largest airline. Delta Air Lines could not immediately be reached for comment by Reuters. (Reporting by Sakthi Prasad in Bangalore; Editing by Samia Nakhoul)