BAE Saudi arms affair

Submitted by Anon on 28 June, 2007 - 12:52

The US Department of Justice (DoJ) has launched a criminal inquiry into the dodgy business practices of BAE Systems, the worlds fourth largest arms supplier. The investigation will delve into BAE’s £40 billion Al Yamamah weapons deal with Saudi Arabia – signed in the 1980s – and the apparent ‘special arrangement’ with a member of the Saudi royal family, Prince Bandar. But why is the DoJ so interested in a deal between a British company and a Saudi royal? Why, if there are allegations of wrong-doing, are there no criminal proceedings here?

It is alleged that Prince Bandar received secret payments for his role in negotiating the Al Yamamah deal. Over a decade, with the full knowledge of the Ministry of Defence, hundreds of millions of pounds were paid into two bank accounts registered at the Saudi Embassy in Washington. When this initially came to light the Serious Fraud Office carried out an investigation but in December 2006 Lord Goldsmith (Attorney General at the time) called a halt. Commenting on the SFO, Tony Blair claimed that continuing an investigation would lead to “the complete wreckage of a vital strategic relationship and the loss of thousands of British jobs”. It’s thought that the SFO’s investigation upset the Saudi government, and it threatened to withdraw a further deal to purchase BAE’s Typhoon fighter. That Prince Bandar is now head of the national security council make these threats all the more credible.

The Al Yamamah affair is a classic example of falling out amongst thieves. That secret payments were made during an arms deal should be of no surprise. That the US government should act to discredit BAE systems – a major rival to US arms firms – is no shock. That Tony Blair attempted to cover up dodgy dealings and defend the interests of British capitalists is natural. The comical outcome of this whole affair is the potential that Blair, his Attorney General and BAE will be exposed as corrupt individuals and institutions by their brothers-in-arms in the US government.

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