In contrast to the Serious Fraud Office’s spin on the fine it’s dished out to BAE Systems for bribing foreign governments to buy its weaponry – the SFO calls it a “warning” to other companies that will prevent corruption – arms deal watcher Andrew Feinstein calls the affair a travesty of justice in today’s Guardian:
The Serious Fraud Office’s settlement with BAE Systems is a travesty of justice. It is also a slap in the face for the people of the countries BAE has allegedly corrupted, the British taxpayer and the British justice system. BAE has always believed itself above the law. On Friday it proved again that it is. In October, the SFO said it was going to seek the attorney general’s consent to press overseas corruption charges against BAE after negotiations with the firm broke down. The press reported this was because the SFO wanted BAE to pay between £200m and £500m and plead guilty to corruption, while BAE was only willing to pay £20m-£30m and did not want to plead guilty.
As recently as Friday morning, the SFO team was still taking formal witness statements in relation to a multibillion-pound deal in which BAE sold jets to South Africa that its air force didn’t want and are hardly used. Over £100m in bribes was allegedly paid to agents, senior politicians, officials and political parties. The SFO felt it had a strong case.
Then out of the blue the SFO allowed BAE to plead guilty to a minor accounting offence in relation to Tanzania, and settled for £30m. It dropped its charges against individuals. There was no mention why the SFO dropped charges relating to the Czech Republic, Hungary, Romania and South Africa.
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