Years of bribery investigations into BAE Systems by the Serious Fraud Office were brought to a close today, when the company was fined after pleading guilty to failing to keep proper accounting records in Tanzania. Here is a timeline of investigations of the defence company:
(ADDED BY JOHN DONOVAN: SHELL PLAYED A KEY MONEY LAUNDERING ROLE IN THE BAE CORRUPTION DEAL PRINTED IN RED TEXT)
1985: Britain signs the Al Yamamah arms-for-oil deal with deal with Saudi Arabia, the biggest export contract in UK history. The agreement was government to government, but BAE Systems (then British Aerospace) was the prime contractor because the deal included the sale of 120 Tornado fighter jets, Hawk trainer planes and other defence kit.
1989: The Observer first reports that an investigation is underway into claims huge payments were made to BAE agents as commission, by inflating the sale price of the Tornados in the Al Yamamah deal.
2000: BAE first failed to accurately account for payments made to its Tanzanian agent, Shailesh Vithlani, a process which went on until 2005.
2004: The Serious Fraud Office starts an investigation into suspected accounting irregularities related to BAE and the Al Yamamah deal, focusing on the relationship between BAE and two small travel firms which made arrangements for Saudi officials on behalf of BAE.
2006: In November, BAE confirms the SFO and Ministry of Defence are probing allegations that BAE paid “backhanders” to the Tanzanian government for a $40m (£28m) military radar system.
In December, the SFO drops the Saudi probe after “representations” from the British government about the need to safeguard national security. The move sparks outrage from transparency campaigners.
The decision followed a Daily Telegraph article, citing unnamed authorative sources, saying Saudi Arabia had given Britain 10 days to halt the SFO inquiry or lose a contract for 72 Eurofighter Typhoon combat jets being built by BAE Systems and consortium partners.
2007: In January, the SFO starts another investiagtion, into payments made by BAE to a South African defence minister in connection with a £1.5bn contract BAE won there in 1999.
In February, the UK confirms there are six probes under way against BAE, with the SFO looking at deals done in Romania, Chile, the Czech Republic and Qatar, as well as South Africa and Tanzania.
In June, the US Department of Justice starts its own investigation into BAE’s compliance with US anti-bribery laws, including its delaings in Saudi.
2008: The House of Lords upholds an appeal from the SFO, saying it acted legitimately in dropping the Saudi probe, on national security grounds.
2009: In Septmber, talks over a possible plea bargain between BAE and the SFO collapse, and the SFO says it will seek the Attorney General’s permission to prosecute the defence company “for offences relating to overseas corruption.”
Reports at the time claimed BAE could be asked to pay between £500m and £1bn should a plea bargain be reached.
2010: In February, BAE agrees to pay a $400m fine to the US after admitting to “defrauding the US” over the sale of fighter planes to Saudi Arabia and Eastern Europe, and also reached a £30m settlement with the SFO, relating to “breaching its duty to keep accounting records” in Tanzania.
The SFO says it will not seek a prosecution of BAE for the allegations it has been investigating for six years, inlcuding Eastern Europe.
SEE: SHELL INVOLVEMENT WITH SAUDI REGIME IN AL-YAMAMAH OIL FOR ARMS SCANDAL
EBOOK TITLE: “SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON
EBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.
EBOOK TITLE: “TOXIC FACTS ABOUT SHELL REMOVED FROM WIKIPEDIA: HOW SHELL BECAME THE MOST HATED BRAND IN THE WORLD” – AVAILABLE ON AMAZON.
