UK fraud buster to prosecute BAE

Britain’s Serious Fraud Office (SFO) said it will seek permission from the country’s attorney general to prosecute the national defence contractor BAE, over bribery charges.

According to the report which appeared in the UK’s The Times, the country’s fraud-buster said it is preparing to submit papers to the Baroness Scotland to seek consent to prosecute BAE for “offences relating to overseas corruption”.

This comes after a controversial decision in 2006 by then-Prime Minister Tony Blair not to prosecute the company for alleged bribery in order to secure a contract to supply 100 fighter jets, worth £43 billion, to Saudi Arabia. The case was dropped on national security grounds.

The report noted that the agency has been investigating the case for the last six years, and will submit the paperwork when it “believes it is ready to proceed”. No further details on the timing of such a prosecution, which has to be approved by the attorney general, were provided by the office.

What was revealed was that investigators had probed alleged bribes paid by BAE to win contracts in the Czech Republic, Romania, South Africa, and Tanzania.

BAE has responded by describing the charges levied against it by the SFO as “historical”, and that it was making “considerable effort” to resolve them. The company also repeated its assertion that it had always acted “responsibly” in its business dealings.

“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,” the company said.

The Times report also noted that the agency is believed to be willing to settle the case if BAE were to accept a fine of £500 million.