BAE pays fines of £285m over arms deal corruption claims

Discussion in 'Current Affairs, News and Analysis' started by fantassin, Feb 5, 2010.

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  1. BAE pays fines of £285m over arms deal corruption claims

    Guardian campaign vindicated by weapons maker's admissions over Saudi al-Yamamah contract and other cases

    The British arms firm BAE Systems has accepted guilt and agreed to pay penalties in the US and the UK totalling several hundred million pounds to settle all the long-running corruption allegations against it.

    Under the deal, announced simultaneously in London and Washington, BAE will pay $400m (£255m) in the US and £30m in the UK.

    In the US, the company will plead guilty to offences of false accounting to settle bribery allegations made over the enormous al-Yamamah arms deals with Saudi Arabia stretching back more than 20 years, as well as corruption allegations over arms deals in central Europe.

    The deal with the Serious Fraud Office in the UK covers one arms contract only, under which an overpriced military radar was sold to Tanzania. The SFO said some of the cash would become "an ex gratia payment for the benefit of the people of Tanzania".

    The settlement vindicates a long campaign fought by the Guardian, which began a series of exposures of BAE's criminal conduct more than six years ago. BAE repeatedly denied all wrongdoing.

    "I am very pleased with the global outcome achieved collaboratively with the DoJ (US department of justice)," said the SFO director, Richard Alderman. "This is a first and it brings a pragmatic end to a long-running and wide-ranging investigation."

    Alderman acknowledged efforts made by BAE to conclude the matter and said he welcomed the company's "declared commitment to high ethical standards".

    BAE, which expressed regret and accepted "full responsibility for these past shortcomings", said the settlement would allow it to "deal finally with significant legacy issues" that had overshadowed the company.

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  2. Nothing new there then
  3. F*cking ridiculous to be honest.
  4. Couldn't happen to a nicer company, however:

    'The SFO said some of the cash would become "an ex gratia payment for the benefit of the people of Tanzania".'

    Better get some more shares in Mercedes and Lear Jet...
  5. And now we know the mercy world of BAE !
  6. NO self-respecting African leader is going to fly in a Lear Jet when such products such as the latest Gulfstream or Global Express are on the market waiting to be purchased with other people's money..
  7. Guardian journo was on last nights news saying that Paddy Shorts niece tipped him off when she was a cabinet minister.

    Typical of the Americans to complain that we out bribed them.
  8. seaweed

    seaweed LE Book Reviewer

    Oh well, that's the end of export contracts for BAE.
  9. I used to work for an American "defense" company that got lots of orders from one particular middle east government. The stuff we sold them was at the best crap and the price they paid was way over the odds. I remember chatting to one of the top people in that governments arms buying ministry and he said, " We prefer do business with our friends and we give our friends presents and expect to get presents from them too". So there you have it, it is a way of life in some in some countries and if we expect to trade with them, we have to play by their rules.
  10. seaweed

    seaweed LE Book Reviewer

    Happens here, too. My late father in law was Sales Manager for a small engineering company. They lost a contract for some finishing work to a competitor who wasn't really a company at all, he was an employee of a third company using its resources and time to do the job on the side, so didn;t have any 'overheads'. My father in law said he couldn't say anything because his lot would never get any more MoD work if he blew the whistle. MoD bloke had been squared of course.