BAE to face corruption charges
THE Serious Fraud Office is to ask the Attorney General to prosecute defence giant BAE Systems over allegations of corruption.
The SFO has been negotiating with BAE, which employs thousands of workers in the North West at sites near Preston and Barrow, but talks broke down yesterday after the two sides could not reach an agreement on what BAE would admit or the fine it should pay.
In a statement issued this morning the SFO said it will, “prepare its papers to be submitted to the attorney when the SFO considers it is ready to proceed.
“This follows the investigation carried out by the SFO into business activities of BAE Systems in Africa and Eastern Europe.”
The case refers to allegations BAE paid bribes to win contracts in Tanzania, the Czech Republic, Romania and South Africa. It is understood the SFO could be seeking to fine the group £500m-£1bn.
A separate investigation by the SFO into alleged bribes in Saudi Arabia was dropped in 2007 after it was decided that national security was at risk.
In a statement BAE said: “The company notes the announcement by the UK’s SFO and continues to expend considerable effort seeking to resolve, at the earliest opportunity, the historical matters under investigation by the SFO.
“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.”
