BAE fined £280m for criminal breaches

DEFENCE contractor BAE Systems, one of the North West’s largest employers, is to pay fines of over £250m for breaching business rules in the US and UK.

The largest fine – £250m – came after the company pleaded guilty to a charge of conspiring to make false statements to the US government.

In the UK, the country’s largest defence group, has struck a deal with the Serious Fraud Office to plead guilty to breach of duty to keep accounting records.

It will pay a £30m penalty – some in fines and some in charity donations – for its misdemeanors relating to payments to a former marketing adviser in Tanzania over an £88m radar system contract.

The charity payment will go to the African nation.

The US fine, agreed with the Department of Justice, relates to undertakings it gave to the US government in 2000 and 2002 in relation to the way it conducts business.

Payments relating to a huge contract with Saudi Arabia, known as al-Yamamah, lie at the centre of the issue with the US.

In a statement BAE Sytems’ chairman Dick Olver said the company regretted “and accepts full responsibility for these past shortcomings”.  He stressed internal procedures had been improved.

“These settlements enable the company to deal finally with significant legacy issues.  In the years since the conduct referred to in these settlements occurred, the company has systematically enhanced its compliance policies and processes with a view to ensuring that the company is as widely recognised for responsible conduct as it is for high quality products and advanced technologies.”