LONDON—BAE, the second biggest defence contractor in the world, agreed on February 5th to pay out nearly £300 million to the US and the UK after admitting guilt in a long-standing corruption scandal.
The British company said it would plead guilty to charges of false accounting and misleading statements made to both the US and the UK at the same time.
The US Justice Department case covers the £43 billion al-Yamamah fighter plane sold to Saudi Arabia, and deals with the Czech Republic and other central European countries where restrictions on the supply of sensitive US technology were flouted.
The UK Serious Fraud Office (SFO) admission concerns the sale of a military radar system to Tanzania, one of the poorest countries in the world.
Richard Alderman, director of the SFO, said the deal was “pragmatic” and puts an end to any more investigation into BAE corruption.
Some of the £30 million to be paid to the UK will go to Tanzania.
Former UK attorney general Lord Goldsmith, told the BBC, “This is one of the most significant things about this settlement, it is the first time there has been a plea bargain of this sort.
“And it is one of the things we are learning from the United States – that’s the way to deal with these issues and companies need to understand that.”
Norman Lamb, a senior Liberal Democrat MP who has campaigned for BAE to face charges, said, “Ultimately the charges that we see admitted are administrative charges, not charges of corruption.”
The US deputy attorney general, Larry Grindler, said, “Any company conducting business with the US that profits through false statements will be held accountable.
“The alleged illegal conduct undermined US efforts to ensure that corruption has no place in international trade.”
BAE says it “regrets its lack of rigour in the past” and has reformed its business practice since 2002, the date of the most recent allegation.
The British company said it would plead guilty to charges of false accounting and misleading statements made to both the US and the UK at the same time.
The US Justice Department case covers the £43 billion al-Yamamah fighter plane sold to Saudi Arabia, and deals with the Czech Republic and other central European countries where restrictions on the supply of sensitive US technology were flouted.
The UK Serious Fraud Office (SFO) admission concerns the sale of a military radar system to Tanzania, one of the poorest countries in the world.
Richard Alderman, director of the SFO, said the deal was “pragmatic” and puts an end to any more investigation into BAE corruption.
Some of the £30 million to be paid to the UK will go to Tanzania.
Former UK attorney general Lord Goldsmith, told the BBC, “This is one of the most significant things about this settlement, it is the first time there has been a plea bargain of this sort.
“And it is one of the things we are learning from the United States – that’s the way to deal with these issues and companies need to understand that.”
Norman Lamb, a senior Liberal Democrat MP who has campaigned for BAE to face charges, said, “Ultimately the charges that we see admitted are administrative charges, not charges of corruption.”
The US deputy attorney general, Larry Grindler, said, “Any company conducting business with the US that profits through false statements will be held accountable.
“The alleged illegal conduct undermined US efforts to ensure that corruption has no place in international trade.”
BAE says it “regrets its lack of rigour in the past” and has reformed its business practice since 2002, the date of the most recent allegation.
