Menu
30/07/2008
Lords Rule Fraud Office 'Acted Lawfully' On BAE Deal
The House of Lords has ruled that the Serious Fraud Office (SFO) acted lawfully when it halted a corruption enquiry into arms deals with Saudi Arabia.
The decision overturns an earlier verdict when the court criticised the British and Saudi governments in April saying that the SFO acted unlawfully.
The SFO dropped its inquiry into the deal, thought to be worth £43 billion, which also accused BAE - Europe's biggest defence company - of illegal payments to Saudi officials.
There were fears it would compromise national security as Government officials said that the Saudi government threatened to withdraw cooperation on security matters.
The Law Lords reversed their previous decision voting 5-0 in favour of the SFO appeal.
Lord Bingham said the SFO Director Robert Wardle was "confronted by an ugly and obviously unwelcome threat" while Lord Rodger said that the fraud office had "no option but to discontinue the investigation because of the potential threat to national and international security".
The SFO said in a statement: "The Serious Fraud Office welcomes the House of Lords decision to allow the appeal against the judgement of the Administrative Court.
"This means that the SFO's former Director, Robert Wardle, acted lawfully in discontinuing an investigation into alleged bribery and corruption surrounding the BAE contract to supply Tornados to the government of Saudi Arabia (The "Al Yamamah" contract).
"As a result of this legal ruling the current Director, Richard Alderman, has concluded that the investigation into the Al-Yamamah arms deal remains discontinued."
The decision has not been welcomed by campaign group Justice however.
Director of Human Rights Policy, Eric Metcalfe commented that "it's a sad day for the rule of law when a senior prosecutor bows to threats from a foreign government" and "our most senior judges will do nothing to stop it".
Nicholas Hildyard of pressure group, The Corner House said: "The unscrupulous who have friends in high places overseas willing to make such threats now have a 'Get Out of Jail Free' card - and there is nothing the public can do to hold the government to account if it abuses its national security powers."
The al-Yamamah deal with the Saudi government was first signed in 1985 but ran into the 1990's.
The deal involved BAE selling Tornado and Hawk jets, other weapons and long-running maintenance and training contracts.
In December 2006, the Attorney General of the time, Lord Goldsmith announced that the SFO was suspending its inquiry into the deal.
The SFO's investigations into some of BAE's non Saudi activities will continue.
See: High Court Reprimand SFO
(DS)
The decision overturns an earlier verdict when the court criticised the British and Saudi governments in April saying that the SFO acted unlawfully.
The SFO dropped its inquiry into the deal, thought to be worth £43 billion, which also accused BAE - Europe's biggest defence company - of illegal payments to Saudi officials.
There were fears it would compromise national security as Government officials said that the Saudi government threatened to withdraw cooperation on security matters.
The Law Lords reversed their previous decision voting 5-0 in favour of the SFO appeal.
Lord Bingham said the SFO Director Robert Wardle was "confronted by an ugly and obviously unwelcome threat" while Lord Rodger said that the fraud office had "no option but to discontinue the investigation because of the potential threat to national and international security".
The SFO said in a statement: "The Serious Fraud Office welcomes the House of Lords decision to allow the appeal against the judgement of the Administrative Court.
"This means that the SFO's former Director, Robert Wardle, acted lawfully in discontinuing an investigation into alleged bribery and corruption surrounding the BAE contract to supply Tornados to the government of Saudi Arabia (The "Al Yamamah" contract).
"As a result of this legal ruling the current Director, Richard Alderman, has concluded that the investigation into the Al-Yamamah arms deal remains discontinued."
The decision has not been welcomed by campaign group Justice however.
Director of Human Rights Policy, Eric Metcalfe commented that "it's a sad day for the rule of law when a senior prosecutor bows to threats from a foreign government" and "our most senior judges will do nothing to stop it".
Nicholas Hildyard of pressure group, The Corner House said: "The unscrupulous who have friends in high places overseas willing to make such threats now have a 'Get Out of Jail Free' card - and there is nothing the public can do to hold the government to account if it abuses its national security powers."
The al-Yamamah deal with the Saudi government was first signed in 1985 but ran into the 1990's.
The deal involved BAE selling Tornado and Hawk jets, other weapons and long-running maintenance and training contracts.
In December 2006, the Attorney General of the time, Lord Goldsmith announced that the SFO was suspending its inquiry into the deal.
The SFO's investigations into some of BAE's non Saudi activities will continue.
See: High Court Reprimand SFO
(DS)
Related UK National News Stories
Click here for the latest headlines.
10 April 2008
High Court Reprimand SFO
The Serious Fraud Office's (SFO) decision to drop a corruption investigation has been ruled by the High Court as unlawful. The SFO launched an inquiry into alleged payments made by BAE - a global defence and aerospace company - to Saudi officials to secure contracts.
High Court Reprimand SFO
The Serious Fraud Office's (SFO) decision to drop a corruption investigation has been ruled by the High Court as unlawful. The SFO launched an inquiry into alleged payments made by BAE - a global defence and aerospace company - to Saudi officials to secure contracts.
28 January 2009
Six Held Over '£426m UK Stock Market Fraud'
Six people have been arrested by Spanish police in relation to an alleged $600 million (£426m) pound fraud on the London stock market. Five Spaniards and one Argentinian were held in Spain as part of a Serious Fraud Office (SFO) investigation into an AIM-listed company called Langbar, which began in 2005.
Six Held Over '£426m UK Stock Market Fraud'
Six people have been arrested by Spanish police in relation to an alleged $600 million (£426m) pound fraud on the London stock market. Five Spaniards and one Argentinian were held in Spain as part of a Serious Fraud Office (SFO) investigation into an AIM-listed company called Langbar, which began in 2005.
06 July 2009
SFO 'To Probe Rover MG Collapse'
The Serious Fraud Office (SFO) is to investigate the circumstances surrounding the collapse of car manufacturer MG Rover, it has been announced. Business Secretary Lord Mandelson confirmed the move, saying in a statement the SFO must see if there are "grounds for prosecution".
SFO 'To Probe Rover MG Collapse'
The Serious Fraud Office (SFO) is to investigate the circumstances surrounding the collapse of car manufacturer MG Rover, it has been announced. Business Secretary Lord Mandelson confirmed the move, saying in a statement the SFO must see if there are "grounds for prosecution".
28 May 2014
GSK To Be Investigated By SFO Over Bribery
British drugs giant GlaxoSmithKline (GSK) has confirmed that a formal criminal investigation has been launched by Britain's Serious Fraud Office (SFO) over alleged bribery in its business practices.
GSK To Be Investigated By SFO Over Bribery
British drugs giant GlaxoSmithKline (GSK) has confirmed that a formal criminal investigation has been launched by Britain's Serious Fraud Office (SFO) over alleged bribery in its business practices.
26 March 2009
SFO Investigates £56m 'Property Scam'
The Serious Fraud Office (SFO) has confirmed it is launching an investigation into an alleged £56 million property scam. The SFO has revealed that between 2003 and 2007 Allied Irish Bank (AIB) provided loans for the purchase of a number of UK investment properties to companies controlled by an individual who is a major suspect in the investigation.
SFO Investigates £56m 'Property Scam'
The Serious Fraud Office (SFO) has confirmed it is launching an investigation into an alleged £56 million property scam. The SFO has revealed that between 2003 and 2007 Allied Irish Bank (AIB) provided loans for the purchase of a number of UK investment properties to companies controlled by an individual who is a major suspect in the investigation.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
