Corruption is a Crime

Labour ministers are refusing to assist the Americans’ investigation into alleged corruption by BAE, the Guardian reports.

The newspaper claims that Home Secretary Jacqui Smith hasn’t approved a request for assistance made by the US authorities two months ago.

The formal request for assistance came from the US department of justice earlier in the summer, but Ms Smith has refused to pass it on to the Serious Fraud Office for processing in the normal way.

This is unusual behaviour towards a major ally, with whom legal cooperation is normally automatic. Last night, the Home Office said its failure to pass on the request was “not unprecedented”, but could not give any example of similar behaviour.

The SFO possesses important files on BAE gained from its own major inquiry into £1bn of payments to Prince Bandar of Saudi Arabia and other Swiss bank accounts linked to the Saudi royal family. But SFO investigators are not allowed to speak to US authorities until Home Office officials forward the paperwork.

The Government’s failure to assist the US inquiry has been condemned by Liberal Democrat MP Norman Lamb, who is quoted in the same story:

“There is no justification for delay. This information should be handed over immediately. Again, one is left with the suspicion that by refusing to cooperate, the government is more interested in securing arms deals than in the pursuit of justice.

“It makes a mockery of the government’s assertion that they are robustly tackling corruption.”

Read the full story here.

The Ministry of Defence has handed security passes to 38 BAE employees, giving them acccess to the MoD headquarters at will. The discovery was made by Liberal Democrat MP Norman Lamb, who criticised the arrangement.

“This demonstrates that there is far too close a relationship between the Ministry of Defence and BAE. This incestuous and potentially corrupting relationship must be brought to an end. BAE’s lobbying muscle helped to bring an end to a major corruption inquiry, which is totally unacceptable.”

The Guardian says that the ministry won’t reveal why the BAE staff were given the passes, or to whom they were given:

However, it is known that one has been held by BAE’s chief lobbyist, Julian Scopes. The pass gave him access to the top levels of the ministry, enabling him to lobby ministers and senior officials and promote BAE’s commercial interests.
[…]
It has also emerged that BAE staff have been given passes by two other Whitehall ministries in recent years - two from the trade department and one from the Foreign Office. Critics have claimed that BAE wields huge influence over the government through privileged access and lobbying. BAE has hired politicians, such as the former defence secretary Michael Portillo, and former officials including Charles Powell, Margaret Thatcher’s chief foreign affairs adviser. The company regularly gives jobs to former MoD officials - 33 in the last 18 months.

Read the full story of the Guardian site.

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.