BAE faces court on bribery charge

1st Oct 2009 08:02

BAE Systems could end up in court after the Serious Fraud Office (SFO) confirmed it is seeking the Attorney General's consent to prosecute the defence contractor over allegations of bribery. The SFO is to ask Baroness Scotland if it can charge the UK blue chip with 'offences relating to overseas corruption'. It's claimed BAE paid backhanders to win contracts overseas in the Czech Republic, Romania, South Africa and Tanzania.The fraud squad said it will prepare its papers to be submitted to the Attorney when the SFO considers it is ready to proceed.'This follows the investigation carried out by the SFO into business activities of BAE Systems in Africa and Eastern Europe,' it said in a short statement.BAE, which strenuously denies any wrongdoing, was caught up in a similar scandal in Saudi Arabia a few years ago, but the case was dropped on grounds of national security.It had been thought that the company will not be prosecuted this time either, but would be ordered to pay a fine of between £500m and £1bn.A formal statement released earlier by BAE said: 'BAE Systems' view is that the interests of the company as well as all of its stakeholders, including the general public, are best served by allowing the ongoing investigations to run their course.''The company is working with regulators towards that end and is providing access to people, information and premises whenever requested. It wholeheartedly supports a rigorous approach, in the hope that it brings to a conclusion enquiries which, in the case of the SFO, are now in their sixth year.'