Bribery allegation costs unknown, says BAE
DEFENCE giant BAE Systems said today it was too early to assess the financial impact of the Serious Fraud Office’s bribery probe.
Earlier this month the SFO said it had asked the Attorney General to prosecute BAE over allegations of corruption in its dealings in Europe and Africa.
The group, which employs some 11,500 staff in the North West, said: “At this stage, it is not possible to determine the possible future financial effects that might result from this matter.”
It added that it, “continued to expend considerable effort seeking to resolve, at the earliest opportunity, the historical matters under investigation by the SFO.”
In the trading update covering July 1 to October 13, management said they anticipate a year of “good growth” for 2009. Land vehicle sales are down but BAE expects to benefit from any continued weakness of sterling against the dollar.
The group also said it was protesting against a decision by the US military to drop it from a tactical vehicles programme. Should the protest fail, warned BAE, the division handling the order, Armor Holdings, would face “significant impairments”.
During the period BAE won several contracts including a Typhoon maintenance deal with Saudi Arabia. It includes training pilots and aircraft technicians.
Last month the group announced 1,100 job cuts affecting its operations in the North West. More than 600 jobs will go with the closure of the Nimrod factory at Woodford, near Stockport. A further 400 jobs will go a plants in Samlesbury and Warton, near Preston.
