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BAE’s new Saudi deal - is this why the investigation was dropped?

BAE Systems is negotiating a new deal to sell military aircraft to Saudi Arabia. Today’s Independent on Sunday reports that questions have been asked into whether the new deal influenced the decision six months ago to scrap the Serious Fraud Office’s investigation into the Al Yamamah deal.

Norman Lamb, the Liberal Democrats’ health spokesman, said: “One questions whether this was envisaged at the same time that the Prime Minister advised against the investigation continuing.”
[…]
It is believed the Saudi royal family had threatened to cancel the final tranche of the Al-Yamamah contract, a multibillion-pound order for 72 Typhoon aircraft, unless the investigation was scrapped.

Liberal Democrat MPs said yesterday that it was possible the Saudis had dangled the current deal during representations to drop the corruption inquiry.

Mr Lamb added: “If this contract was envisaged and the Saudis were saying your prospects of winning this contract hang in the balance, that would be yet more evidence of a breach of OECD rules.

“It certainly needs to be pursued. Particularly if there is a link between this contract, supply of work, and the decision in December.”

Mr Lamb’s colleague Vince Cable, a Treasury spokesman, said: “Prince Bandar was coming to Britain and landing at Brize Norton about every fortnight. They can’t just have been discussing dropping the investigation.”

The full article is here.

Posted in Al Yamamah, BAE, Norman Lamb, Vince Cable |

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