BAE fined over Tanzania dealings

21st Dec 2010 11:29

Defence group BAE has been fined £500,000 after admitting to making accounting failures in its business dealings in Tanzania. It made payments of about £7.7m to two companies controlled by businessman Shailesh Vithlani between 2000 and 2005, ahead of winning a £28m contract to provide Tanzania with military radars, Southwark Crown Court heard. BAE was also ordered to pay £225,000 costs.The judge Mr Justice Bean, said that a settlement with the Serious Fraud Office (SFO) had resulted in BAE agreeing to pay £30m to the people of Tanzania.He said that the Tanzanian contract, which was to install radars at Dar es Salaam, would have cost the southern African country much less if the payments had not been made to Vithlani.Judge Bean said that the agreement meant he was under pressure to keep the fine to a minimum.