/ 1 October 2009

BAE faces prosecution over alleged corruption

Britain’s Serious Fraud Office (SFO) announced on Thursday that it would seek prosecution of defence equipment firm BAE Systems over alleged corruption involving contracts with European and African nations.

”The SFO has announced today [Thursday] that it intends to seek the Attorney General’s consent to prosecute BAE Systems for offences relating to overseas corruption and will prepare its papers to be submitted,” the office said in a statement.

”This follows the investigation carried out by the SFO into business activities of BAE Systems in Africa and Eastern Europe.”

Responding to the announcement, BAE Systems said it was prepared to go to court to settle the allegations.

The SFO had been trying to persuade the company to accept a plea deal rather than face prosecution over claims it paid millions of pounds to win contracts in Africa and elsewhere, a source had said on Wednesday.

Following expiry of the offer, the SFO is to apply to Attorney General Patricia Scotland for permission to bring charges against BAE.

The British defence group has repeatedly denied allegations that it paid hundreds of millions of pounds of bribes to win contracts in Tanzania, South Africa, Romania and other countries.

BAE said in its statement released on Thursday: ”The company notes the announcement by the UK’s Serious Fraud Office and continues to expend considerable effort seeking to resolve, at the earliest opportunity, the historical matters under investigation.”

It added: ”BAE Systems has at all times acted responsibly in its dealings with the SFO, taking into account the interests of its shareholders and employees and the legal advice it has received.

”If the director of the SFO obtains the consent that he seeks from the Attorney General and proceedings are commenced, the company will deal with any issues raised in those proceedings at the appropriate time and, if necessary, in court.”

One of the world’s biggest arms makers, BAE Systems generates 58% of its sales in the United States and is the sixth-largest supplier to the US defence department.

The SFO was embroiled in controversy in 2006 when investigators ditched a probe into a BAE deal with Saudi Arabia worth £43-billion.

Then-prime minister Tony Blair explained the decision by saying the investigation could threaten intelligence links at a key point in the ”war on terror”.

The decision was criticised by anti-corruption campaigners and the British press, which accused the government of bowing to pressure from Riyadh. — AFP

 

AFP