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Companies

BAE provided "support services" to Saudi officials

 

BAE Systems, the arms manufacturer dogged by bribery allegations, paid for and provided “support services” to Saudi Arabian officials as part of the Al-Yamamah arms deal, documents released under freedom of information laws have revealed.

 

An official account from the attorney general’s office refers to a letter from BAE’s solicitors to the Serious Fraud Office (SFO), which confirmed provision was made for supplying support services to Saudi officials. The letter did not, however, specify what these services were.

 

Last year the SFO controversially dropped an investigation into allegations that BAE bribed Saudi officials to secure an arms deal. Many attributed this decision to pressure from the prime minister’s office, and among those to express concern was the Organisation for Economic Co-operation and Development.

 

The difficulty the investigation found, according to the attorney general’s office, was the extent to which these payments were made with the consent of the ultimate Saudi “customer” or principal. In this case, it was reported, the question presented a particular challenge to a successful prosecution because of the problems of establishing, within the context of Saudi constitutional arrangements, what authorisation had been given and at what level.

 

The editorial in the Financial Times (10 April) suggested Continental Europeans and Americans are beginning to detect the smell of hypocrisy in the UK’s record on prosecuting corruption as compared to its “condescending rhetoric”.

 

For instance, said the FT, while the UK has traditionally derided Germany for its Rhineland corporatism, the country has recently demonstrated a vigour in its prosecutions, particularly of Siemens. As opposed to this, noted the FT, since the 2001 law criminalising bribery of overseas public officials, not one successful prosecution has been brought in the UK.

 

However, added the FT, the UK is not the only country that has failed to implement anti-bribery laws, and there is an urgent need to enforce, and expand membership of, the Organisation for Economic Co-operation and Development and United Nations anti-bribery conventions. The FT argued that while completely eradicating corruption may be unrealistic, making the world less hospitable to criminals is not.

 

Links

BAE Systems

Serious Fraud Office

Financial Times

 

May 2007

   

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