Fighter aircraft fraud probe ends
The Serious Fraud Office has ended its corruption inquiry into a ?6bn fighter planes deal with Saudi Arabia. Attorney General Lord Goldsmith said the SFO was "discontinuing" its investigation into Britain's biggest defence company, BAE Systems. The probe had related to the Al Yamamah arms deal with Saudi Arabia. BAE has denied any wrongdoing.
Lord Goldsmith told the Lords he thought that a prosecution "could not be brought". He said the decision had been made in the wider public interest, which had to be balanced against the rule of law. Lord Goldsmith also told peers that Prime Minister Tony Blair had agreed that the continuation of the investigation would cause "serious damage" to relations between the UK and Saudi Arabia.
It emerged earlier this month that French and Saudi officials were in talks over a possible alternative deal, which could scupper the BAE sale. The Saudi government was reported to have been angered by the SFO investigation into allegations of a slush fund for members of the country's royal family. Lord Goldsmith said that both Mr Blair and Defence Secretary Des Browne had argued that carrying on the investigation would harm intelligence and diplomatic co-operation with Saudi Arabia, in turn damaging the UK's national security.
BBC business editor Robert Peston says that major UK companies - both arms firms and other manufacturers - have voiced fears that they stood to lose other lucrative deals should the probe have continued. The SFO said its decision had been taken "following representations that have been made both to the Attorney General and the Director of the SFO concerning the need to safeguard national and international security". It added: "No weight has been given to commercial interests or to the national economic interest."
The Al Yamamah contract with Saudi Arabia is thought to have been worth ?40bn to BAE Systems over the past two decades. Saudi Arabia said in August that it planned to buy 72 Eurofighters to replace its range of Tornado jets, which were also made by BAE.
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If ever you needed proof of the global corruption between governments and business, then here it is. The law has simply been put to one side in favour of maintaining profits - and while there's the possibility of jobs having been lost if the case did go ahead, is that justification?
