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MP speaks out over BAE
"I HOPE they have learned their lesson."
That was the message from Fylde MP Michael Jack today after an agreement ended a lengthy probe into allegations of corruption involving BAE Systems.
A deal was struck by the defence contractor – which employs 11,500 workers at its plants in Warton and Samlesbury – to end inquiries into its affairs in several countries.
The firm has agreed to pay fines of 286m to the US Department of Justice and the Serious Fraud Office and it will plead guilty to conspiring to make false statements to the US Government.
The six-year long investigations surrounded the sale of arms, including Tornado jets, to Saudi Arabia in the 1980s and 90s, as well as fighter deals with Hungary and the Czech Republic.
BAE will hand over more than 250m to the US, which accused it of "wilfully misleading" American investigators over payments made as the firm tried to win contracts.
The company will pay about 30m in the UK for alleged wrongdoings relating to deals with Tanzania.
Some campaigners have attacked the deal as it means full details of the case will now not emerge.
The Campaign Against the Arms Trade said it was "outraged and angry" claims of corruption, which BAE has not admitted, would not be aired in court.
But Mr Jack, who has been following the case closely over the years, said: "I just hope – to quote what BAE has said – lessons have been learned following this and improved procedures have been put in place.
"It's very difficult for even informed members of the public to form a clear view of matters. This has been a less than transparent process.
"We do not know exactly what it is they are supposed to have done or exactly what they are accused of."
Mr Jack said the "taint" that had been hanging over BAE for so long has caused the company problems, particularly in agreeing export markets and developing in the US.
He added: "But BAE is not universal in being caught up in this sort of story-telling.
"If this agreement means they really have learned lessons – and they have indicated they have adopted policies which are different – for the well-being of the company, that is good.
"If it means they are not at risk of prosecution in the future for any improper procedures then that's also a good thing.
"While it's always of interest to have more detail about something, whether that would materially alter the future for the business it's very difficult to tell."
The Chairman of BAE Systems Dick Olver said the settlement would help the firm draw a "very heavy line" under the corruption claims.
But others claimed that it had in effect let the company off the hook.
Nicholas Hildyard, for social justice campaigner The Corner House, called on the UK authorities to reopen its probe into the Al-Yamamah deal.
He said: "The company's admission obviously calls into question its repeated denials of any wrongdoing. Far from drawing a line under the allegations, the announcement simply raises far more questions and creates yet further demands for justice.”
Liberal Democrat deputy leader Vince Cable aired concerns key details relating to suspect BAE Systems arms deals would remain “hidden from the public”.
He added: “The one positive thing is we have now had an acknowledgement from BAE Systems that unacceptable practices were being conducted.
“But nobody has been brought to account.”
Former Attorney General Lord Goldsmith said he “strongly supported” the SFO’s new approach using plea bargaining.
“This is one of the most significant things about this settlement. It is the first time that there has been a plea bargain of this sort, and that is one of the things we are learning from the US,” he said.
“That is the way to deal with these issues, to negotiate.”
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Saturday 04 February 2012
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