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BAE accused of “financially incentivising” politicians in South Africa

December 9, 2008

BAE Hawk on the runwayThe arms company BAE is alleged to have paid more than £100m to officials from the South African government, in order to secure a deal to sell aircraft worth £1.6bn.

From the Guardian:

More than £100m was secretly paid by the arms company BAE to sell warplanes to South Africa, according to allegations in a detailed police dossier seen by the Guardian yesterday.

The leaked evidence from South African police and the British Serious Fraud Office quotes a BAE agent recommending “financially incentivising” politicians.

In the arms deal, the new ANC government in South Africa agreed to spend a controversial £1.6bn buying fleets of Hawk and Gripen warplanes.

Critics said the country, beset by unemployment and HIV/Aids, could not afford it. The Hawks, rejected by the military, cost twice as much as Italian equivalents.

But the then South African defence minister Joe Modise and a key official, Chippy Shaik, insisted on the purchase.

BAE is accused in the reports of corrupt relationships with an arms tycoon, John Bredenkamp, recently blacklisted in the US for his links with Robert Mugabe of Zimbabwe. Bredenkamp’s blacklisting freezes his assets in the US.

BAE’s former marketing director for southern Africa, Allan McDonald, has been speaking to police, the leaked files say. He allegedly told them Bredenkamp “gave progress reports directly to Mike Turner”. Turner, who has been interviewed under caution by the SFO, stepped down last year as BAE’s chief executive.

Bredenkamp-linked companies were paid £40m by BAE to promote the arms deal. According to McDonald, “Bredenkamp suggested identifying the key decision-makers, with a view to ‘financially incentivising them’ to make the right decision”.

The Bredenkamp team claimed he said, “We can get to Chippy Shaik”. A seized memo also referred to “third world procedures”. An SFO affidavit says: “I believe that a reference to ‘third world procedures’ is a veiled reference to the payment of bribes.”

Posted in BAE |

2 Responses

  1. Janet King Says:

    Why is the South African government spending £1.6 billions on war planes (are they at war with anyone?) when they cannot supply their children with schools, meals and toilets? Yes, toilets! I had a phone call today from Breadline Africa asking for a donation so they can provide toilets inside metal containers for school children in Capetown. We have to encourage them (and BAE)to get their priorities right.

  2. Chris Close Says:

    Isnt Lord Taylor a BAE Former adviser and now he is involved in another corruption scam?

    Find myself not at all shocked at the alleged revelation in the Sunday Times that four New Labour peers have in essence allegedly agreed to accept bribes for tabling amendments to Laws to benefit Commercial interests of the people offering to pay them.It’s just another example of Government corruption.And we are not talking minor amounts; one of them allegedly wanted £120,000 per year!So politics on every level in this country is peopled by people with their snouts in the trough to rip this Country off for as much as they can.Starting with the Councillors, whose allowances now are so substantial they amount to a salary along with their redundancy and retirement packages.To MPS who seem capable of attracting Part time jobs with multinationals alongside their Parliamentary duties(although of course with no potential conflict of interest, No, No never!!!!).Finally to the Lords who along with their ‘allowance’ of up to £300 per day are now, at least on the Labour benches, apparently selling off the law of this country to the Highest bidder!But are we surprised?No, not when we remember their role model, Tony Blair, Mr Teflon, who has prostituted himself around the world taking money where he can get it, trading on his reputation as British PM.The Christian who definitely begins at home, his home!This warmonger and war criminal has sold this country down the river and left in charge an incompetent buffoon who is even more rapidly destroying our economy than Bliar and Bush destroyed Iraq with their illegal war and both of whom supported the Israeli war crimes in Gaza.So a few Lords trying to ‘trouser’ as much as they can should be no surprise.But forgive me, isn’t this in essence ‘Treason’ for which I believe they can still be hanged?

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