Al Yamamah

Al Yamamah ( _ar. اليمامة "The Dove") is the name of a series of a record arms sales by the United Kingdom to Saudi Arabia, which have been paid for by the delivery of up to 600,000 barrels of oil per day to the UK government. [cite news | first = | last = | author = | coauthors =| url =http://news.bbc.co.uk/1/hi/business/the_company_file/285963.stm | title =Arms sales fuel BAe's profits | work = | publisher =BBC News | pages = | page = | date =1999-02-25 | accessdate =2006-08-19 | language = ] The prime contractor has been BAE Systems and its predecessor British Aerospace. The first sales occurred in September 1985 and the most recent contract for 72 Eurofighter Typhoon multirole fighters was signed in August 2006.

Mike Turner, the CEO of BAE Systems, said in August 2005 that BAE and its predecessor had earned £43 billion in twenty years from the contracts and that it could earn £40 billion more. [cite news | last =O’Connell| first =Dominic | title =BAE cashes in on £40bn Arab jet deal | work=The Sunday Times| publisher = News International | date = 2006-08-20 | url = http://www.timesonline.co.uk/article/0,,2095-2320097,00.html | accessdate =2006-08-22 ] It is Britain's largest ever export agreement, and employs some 5,000 people in Saudi Arabia. [cite web|url=http://www.projectay.co.uk/|accessdate=2006-12-18|title=Welcome to Project AY|publisher=BAE Systems]

Background

The UK was already a major supplier of arms to Saudi Arabia prior to Al Yamamah. In 1964 The British Aircraft Corporation conducted demonstration flights of their Lightning in Riyadh and in 1965 Saudi Arabia signed a letter of intent for the supply of Lightning and Strikemaster aircraft as well as Thunderbird surface to air missiles. The main contract was signed in 1966 for 40 Lightnings and 25 Strikemasters (eventually raised to 40). In 1973 the Saudi government signed an agreement with the British government which specified BAC as the contractor for all parts of the defence system (AEI was previously contracted to supply the radar equipment and Airwork Services provided servicing and training). Overall spending by the RSAF was over £1 billion GBP. [cite book |last=Gardner |first=Charles |title=British Aircraft Corporation. A history by Charles Gardner |origyear=1981 |accessdate=2006-08-19 |publisher=B.T. Batsford Ltd |id=ISBN 0-7134-3815-0 |doi = |pages=224-249 ]

In the 1970s United States defence contractors won major contracts, including 114 Northrop F-5s. In 1981 the RSAF ordered 46 F-15Cs and 16 F-15Ds, followed in 1982 by the purchase of 5 E-3A AWACS aircraft. Partly due to pro-Israeli sentiment in the U.S. Congress, which would have either blocked a deal or insisted on usage restrictions for exported aircraft, Saudi Arabia turned to the UK for further arms purchases. [cite news|first= Bridget|last= Bloom|coauthors= Johns, Richard|title= A deal in a different dimension; The UK-Saudi arms sale|work= Financial Times|publisher= The Financial Times|page= 16 |date= 1986-02-19|accessdate= 2007-02-26]

ummary

The "Financial Times" reported Saudi Arabian "interest" in the Panavia Tornado in July 1984. Export had become a possibility after West Germany lifted its objections to exports outside of NATO. [cite news | first = Michael | title = Saudi Arabia considers Tornado fighter deal | work = Financial Times | publisher = The Financial Times Limited | page = 6 | date = 1984-07-11 | accessdate = 2006-12-16] In September 1985 Saudi Arabia agreed "in principle" to a Tornado, Hawk and missile deal. [cite news | first = David | last = Fairhill | title = Saudis agree 'in principle' to 3 billion pound plane deal: Israelis angered by Tornado sale 'arms race escalation' | work = Financial Times | publisher = The Financial Times Limited | date = 1985-09-16 | accessdate = 2006-12-16] On 1985-09-26 the defence ministers of the UK and Saudi Arabia sign a Memorandum of Understanding in London for 48 Tornado IDSs, 24 Tornado ADVs, 30 Hawk training aircraft, 30 Pilatus PC-9 trainers, a range of weapons, radar, spares and a pilot-training programme.cite book |last=Taylor |first=Michael J.H.|title=Flight International World Aircraft & Systems Directory |accessdate=2007-08-16|edition=3rd Edition|year=2001|publisher=Reed Business Information |location=United Kingdom |isbn=061701289X |pages=189-190] The second stage (Al Yamamah II) was signed on 3 July 1988 in Bermuda by the defence ministers of the UK and Saudi Arabia. [cite news | first = David | last = Fairhill | title = Britain signs 6 billion pounds Saudi arms contract | work = The Guardian | publisher = Guardian Newspapers Limited | date = 1988-07-09 | accessdate = 2006-12-18]

Although the full extent of the deal has never been fully clarified, it has been described as "the biggest [U.K.] sale ever of anything to anyone", "staggering both by its sheer size and complexity". ["Financial Times", 9 July 1988, cited in Hirst, C., http://www.caat.org.uk/publications/countries/saudi-arabia.php 'The Arabian Connection: The UK Arms Trade to Saudi Arabia'] ] At a minimum, it is believed to involve the supply and support of 96 Panavia Tornado ground attack aircraft, 24 Air Defence Variants (ADVs), 50 BAE Hawk and 50 Pilatus PC-9 aircraft, specialised naval vessels, and various infrastructure works. The initial Memorandum of Understanding committed the UK to purchasing the obsolete Lightning and Strikemaster aircraft, along with associated equipment and spare parts. [cite web| url = http://image.guardian.co.uk/sys-files/Politics/documents/2006/10/27/PJ5_39AYMoUSep1985.pdf| title = Memorandum of Undestaning for the provision of equipment and services for the Royal Saudi Air Force| accessdate = 2006-11-02| month = September | year = 1985| format = PDF| work = | publisher = ]

The UK government’s prime contractor for the project is BAE Systems. BAE has approximately 4,000 employees working directly with the Royal Saudi Air Force (also see Military of Saudi Arabia).

The success of the initial contract has been attributed to Prime Minister Margaret Thatcher, who lobbied hard on behalf of British industry. A Ministry of Defence briefing paper for Thatcher detailed her involvement in the negotiations: [cite web| url = http://image.guardian.co.uk/sys-files/Politics/documents/2006/10/27/PJ5_39BriefforThatcherSept85.pdf| title = Briefing for the Prime Minister's meeting with Prince Sultan| accessdate = 2006-11-02| last = Mottram| first = R| date = 1985-09-25| format = PDF| work =| publisher = ]

Since early 1984, intensive efforts have been made to sell Tornado and Hawk to the Saudis. When, in the Autumn of 1984, they seemed to be leaning towards French Mirage fighters, Mr Heseltine paid an urgent visit to Saudi Arabia, carrying a letter from the Prime Minister to King Fahd. In December 1984 the Prime Minister started a series of important negotiations by meeting Prince Bandar, the son of Prince Sultan. The Prime Minister met the King in Riyahd in April this year and in August the King wrote to her stating his decision to buy 48 Tornado IDS and 30 Hawk.

There were no conditions relating to security sector reform or human rights included in the contracts. [cite web|date=18 November 2003|url=http://www.theyworkforyou.com/wrans/?id=2003-11-18.137764.h|title=Defence - Saudi Arabia|publisher=Hansard|author=Adam Ingram|accessdate-2006-12-15] Contracts between BAE Systems and the Saudi government have been underwritten by the Export Credits Guarantee Department, a tax-payer funded insurance system. Guarantees on a contract worth up to £2.7billion were signed by the government on 1 September 2003. [cite news|url=http://www.guardian.co.uk/military/story/0,,1094206,00.html|date=27 November 2003|title=Millions risked on BAE contract|author=Rob Evans|coauthors=David Leigh|publisher=The Guardian|accessdate=2006-12-16] In December 2004, the Commons trade committee chairman, Martin O'Neill, accused the government of being foolish for concealing a £1billion guarantee they have given to BAE Systems. [cite news|url=http://www.guardian.co.uk/armstrade/story/0,,1373727,00.html|date=15 December 2004|publisher=The Guardian|title=£1bn BAE guarantee 'foolish', says MP|author=David Leigh|coauthors=Rob Evans|accessdate=2006-12-16]

Al Yamamah I

*48 Panavia Tornado Interdictor Strike (IDS)s
**28 GR1 Standard
**6 GR1A Reconnaissance Standard
**14 Dual Control Trainers
*24 Panavia Tornado Air Defence Variant, equivalent to RAF Tornado F3 standard
*JP233 Runway Denial Munition
*Sea Eagle Anti Ship Missile
*ALARM Anti-Radar Missile

The first aircraft (two Hawks) were delivered on 11 August 1987 at BAe's Dunsfold facility. [cite news | first = Michael | last = Donne | title = BAe Hands Over First Part Of Saudi Aircraft Order | work = Financial Times | publisher = The Financial Times Limited | page = 6 | date = 1987-08-12 | accessdate = 2006-12-16]

Al Yamamah II

Deliveries early 1990s - 1998
*48 Panavia Tornado IDSs

Eurofighter Typhoon (al-Salam)

In December 2005 the governments of the UK and Saudi Arabia signed an "Understanding Document" which involved the sale of Typhoon aircraft to replace RSAF Tornados and other aircraft. Although no details were released, reports suggested the deal involved the supply of 72 aircraft. On 18 August 2006 a contract was signed for 72 aircraft. The aircraft cost approximately £4.43 billion, and the full weapons system is expected to cost approximately £10 billion. [cite news | first = | last = | author = | coauthors =| url =http://business.timesonline.co.uk/article/0,,13130-2319186,00.html | title =BAE confirms £5bn Eurofighter sale to Saudi Arabia | publisher =The Times | date =2006-08-19 | accessdate =2006-08-19] The fact that the deal mirrors the conditions of the previous Al Yamamah contracts suggests that it is in effect Al Yamamah III (i.e. BAE the contractor, secrecy over contract details and payment in oil via the UK government).

Tornado upgrade

In February 2006 "Air Forces Monthly" suggested that the eventual Eurofighter order may reach 100 and the deal could include the upgrade of the RSAF's Tornado IDS aircraft, likely similar to the RAF's Tornado GR4 standard. In an editorial the magazine also raises the prospect of a requirement for a new lead-in fighter trainer to replace the earlier generation of Hawk 65/65As and to provide adequate training for transition of pilots to the advanced Typhoon. [cite news | title =Saudi Arabia Signs Typhoon Deal | publisher =Air Forces Monthly | pages =4-5 | date =February 2006 | accessdate =2006-08-22 ] BAE System's 2005 Interim Report noted that three RSAF Tornado IDSs arrived at their Warton facility for design evaluation tests with the ultimate aim being "to improve serviceability, address obsolescence, and enhance and sustain the capability of the aircraft". On 10 September 2006 BAE won a £2.5bn (€3.7bn, $4.6bn) contract for the upgrade of 80 RSAF Tornado IDSs. [cite news | last = Steiner | first = Rupert | title = BAE clinches new £2.5bn Tornado deal with Saudis | publisher = The Business | date =2006-09-10 | url = http://www.thebusinessonline.com/Stories.aspx?BAE%20clinches%20new%20%C2%A32.5bn%20Tornado%20deal%20with%20Saudis&StoryID=CCB0F5FD-9EAB-4177-ACEE-4288DA084899&SectionID=F3B76EF0-7991-4389-B72E-D07EB5AA1CEE | accessdate =2006-09-12]

Corruption allegations

There have been numerous allegations that the Al Yamamah contracts were a result of bribes ("douceurs") to members of the Saudi royal family and government officials.

Some allegations suggested that the former prime minister's son Mark Thatcher may have been involved, however he has strongly denied receiving payments or exploiting his mother's connections in his business dealings. [cite web|url=http://www.caat.org.uk/publications/corruption/submission-0900.php |title=Submission from the Campaign Against Arms Trade to the International Development Committee's Inquiry into corruption |accessdate=2006-08-19 |month=September | year=2000 |publisher=Campaign Against Arms Trade]

In February 2001, the solicitor of a former BAE Systems employee, Edward Cunningham, notified Serious Fraud Office of the evidence that his client was holding which related to an alleged "slush fund". The SFO wrote a letter to Kevin Tebbit at the MoD who notified the Chairman of BAE Systems [cite web|url=http://www.theyworkforyou.com/wrans/?id=2003-11-17.137234.h|date=17 November 2003|author=Adam Ingram|publisher=Hansard|title=Defence - Saudi Arabia|accessdate=2006-12-15] but not the Secretary of Defence. [cite web|url=http://www.theyworkforyou.com/wrans/?id=2004-05-25.171750.h|date=25 May 2004|author=Geoff Hoon|publisher=Hansard|title=Al Yamamah Contracts|accessdate=2006-12-15] No further action was taken until the letter was leaked to "The Guardian" in September 2003. [cite news| url=http://www.guardian.co.uk/armstrade/story/0,,1061671,00.html|date=13 October 2003|title=MoD chief in fraud cover-up row|publisher=The Guardian|author=David Leigh|coauthors=Rob Evans|accessdate=2006-12-15]

In October 2004, the BBC's "Money Programme" broadcast an in-depth story, including allegations in interviews with Edward Cunningham and another former insider, about the way BAE Systems alleged to have paid bribes to Prince Turki bin Nasser and ran a secret £60 million slush fund in relation to the Al Yamamah deal.cite news|url=http://news.bbc.co.uk/2/hi/business/3712770.stm|title=BBC lifts the lid on secret BAE slush fund|author=Michael Robinson|publisher=BBC Money Programme|date=4 October 2004|accessdate=2006-12-15] Most of the money was alleged to have been spent through a front company called Robert Lee International Limited.

In June 2007 the BBC's investigative programme "Panorama" alleged that BAE Systems "..paid hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan." [ [http://news.bbc.co.uk/2/hi/business/6728773.stm Saudi prince 'received arms cash'] , BBC, 7 June 2007]

1992 NAO report

The UK National Audit Office investigated the contracts and has so far not released its conclusions - the only NAO report ever to be withheld. Official statements about the contents of the report go no further than to state that the then chairman of the Public Accounts Committee, now Lord Sheldon, considered the report in private in February 1992, and said: "I did an investigation and I find no evidence that the MOD made improper payments. I have found no evidence of fraud or corruption. The deal... complied with Treasury approval and the rules of Government accounting." [cite web|url=http://www.theyworkforyou.com/wrans/?id=2002-02-13.35029.h|date=13 February 2002|publisher=Hansard|author=Alan Williams|title=Public Accounts Commission - Al-Yamamah Arms Agreement|accessdate=2006-12-15]

In July 2006, Sir John Bourn, the head of the National Audit Office, refused to release a copy to the investigators of an unpublished report into the contract that had been drawn up in 1992.cite news | first =David | last =Leigh | coauthors =Evans, Rob| url =http://www.guardian.co.uk/armstrade/story/0,,1828253,00.html | title =Parliamentary auditor hampers police inquiry into arms deal | work =The Guardian | publisher = Guardian Newspapers Ltd. | date =2006-07-25 | accessdate =2006-08-12 | language = ]

The MP Harry Cohen said, "This does look like a serious conflict of interest. Sir John did a lot of work at the MoD on Al Yamamah and here we now have the NAO covering up this report." In early 2002 he had proposed an Early Day Motion noting "that there have been... allegations made of large commission payments made to individuals in Saudi Arabia as part of... Al Yamamah... [and] that Osama bin Laden and the Al-Qaeda network have received substantial funds from individuals in Saudi Arabia." [cite web|url=http://www.theyworkforyou.com/debate/?id=2002-02-07.1046.5|date=7 February 2002|title=Business of the House|author=Harry Cohen|accessdate=2006-12-15]

erious Fraud Office investigation

The Serious Fraud Office was reported to be considering opening an investigation in to an alleged £20 million slush fund on 12 September 2003, the day after "The Guardian" had published its slush fund story. [cite news|url=http://www.guardian.co.uk/armstrade/story/0,,1040440,00.html| title=Fraud Office looks again at BAE|date=12 September 2003|accessdate=2006-12-16|publisher=The Guardian|author=David Leigh|coauthers=Rob Evans, David Gow] The SFO also investigated BAE's relationship with Travellers World Limited. [cite news | title = BAE subject of fraud investigation | work = The Herald | publisher = Scottish Media Newspapers Limited | page = 23 | date = 2004-11-18 | accessdate = 2006-12-17]

In November 2004 the SFO made two arrests as part of the investigation. [cite news|url=http://news.bbc.co.uk/2/hi/business/3978703.stm|title=SFO to investigate BAE contracts|date=3 November 2006|publisher=BBC News|accessdate=2006-12-15] BAE Systems stated that they welcomed the investigation and "believe [d] that it would put these matters to rest once and for all." [cite news|url=http://news.bbc.co.uk/2/hi/business/4020905.stm|date=17 November 2006|title=BAE included in SFO investigation|publisher=BBC News|accessdate=2006-12-15]

In late 2005, BAE refused to comply with compulsory production notices for details of its secret offshore payments to the Middle East.cite news|url=http://www.guardian.co.uk/armstrade/story/0,,1973421,00.html| title=Brutal politics lesson for corruption investigators|author=David Leigh|coauthors=Rob Evans|date=16 December 2006|publisher=The Guardian|accessdate=2006-12-16] The terms of the investigation was for a prosecution under Part 12 of the Anti-terrorism, Crime and Security Act 2001.

Threats by the Saudi government

At the end of November 2006, when the long-running investigation was threatening to go on for two more years, [cite news|url=http://news.bbc.co.uk/2/hi/business/6206298.stm|title=Defence firms fear Saudi fall-out|date=4 December 2006|accessdate=2006-12-15] BAE Systems was negotiating a multi-billion pound sale of Eurofighter Typhoons to Saudi Arabia. According to the BBC the contract was worth £6billion with 5,000 people directly employed in the manufacture of the Eurofighter, [cite news|url=http://news.bbc.co.uk/2/hi/business/6195260.stm|title=Unions confirm BAE job loss fears|date=29 November 2006|accessdate=2006-12-15] while other reports put the value at £10billion with 50,000 jobs at stake.

On 1 December The "Daily Telegraph" ran a front page headline suggesting that Saudi Arabia had given the UK ten days to suspend the Serious Fraud Office investigation into BAE/Saudi Arabian transactions or they would take the deal to France,cite news | first = Christopher | last = Hope | title = Halt inquiry or we cancel Eurofighters | url = http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/12/01/nsaudi01.xml | work = The Daily Telegraph | publisher = Telegraph Media Group Limited | date = 2006-12-01 | accessdate = 2006-12-01] but this threat was played down in other quarters. A French official had said "the situation was complex and difficult... and there was no indication to suggest the Saudis planned to drop the Eurofighter." This analysis was confirmed by Andrew Brookes, an analyst at the International Institute for Strategic Studies, who said "there could be an element here of trying to scare the SFO off. Will it mean they do not buy the Eurofighter? I doubt it." [cite news | author = Bowell, James; Fidler Stephen | coauthors = Hollinger, Peggy; Khalaf, Roula; Peel, Michael | title = BAE investors take flight at potential loss of Eurofighter deal. | work = Financial Times | publisher = The Financial Times Limited | page = 3 | date = 2006-11-28 | accessdate = 2006-12-01]

There were reports of a systematic PR campaign operated by Tim Bell through newspaper scare stories, letters from business owners and MPs in whose constituencies the factories were located to get the case closed.

Investigation discontinued

On 14 December 2006, the Attorney General Lord Goldsmith announced that the investigation was being discontinued on grounds of the public interest. [cite news|url=http://news.bbc.co.uk/2/hi/business/6182137.stm|title=Timeline: BAE corruption probe|date=15 December 2006|publisher=BBC News|accessdate=2006-12-15] The 15-strong team had been ordered to turn in their files two days before. The statement in the House of Lords read:

The Director of the Serious Fraud Office has decided to discontinue the investigation into the affairs of BAE Systems plc as far as they relate to the Al Yamamah defence contract. This decision has been taken following representations that have been made both to the Attorney General and the Director concerning the need to safeguard national and international security. It has been necessary to balance the need to maintain the rule of law against the wider public interest. No weight has been given to commercial interests or to the national economic interest. [cite web|url=http://www.theyworkforyou.com/lords/?id=2006-12-14a.1711.2|author=Lord Goldsmith|title=BAE Systems: Al Yamamah Contract|date=15 December 2006|accessdate=2006-12-15|publisher=Hansard]

The Prime Minister justified the decision by saying "Our relationship with Saudi Arabia is vitally important for our country in terms of counter-terrorism, in terms of the broader Middle East, in terms of helping in respect of Israel and Palestine. That strategic interest comes first." [cite news|url=http://news.bbc.co.uk/2/hi/uk_news/politics/6182125.stm|title=Blair defends Saudi probe ruling|date=15 December 2006|publisher=BBC News|accessdate=2006-12-15]

Jonathan Aitken, a former Tory government minister and convicted perjurer, who was connected with the deals in the 1980s, said that even if the allegations against BAE were true, it was correct to end the investigation in order to maintain good relations with Saudi Arabia. [cite news|url=http://news.bbc.co.uk/2/hi/business/6181977.stm|date=15 December 2006|title=Criticism of ditched Saudi probe|accessdate=2006-12-15|publisher=BBC News]

Mark Pieth, director of anti-fraud section at the OECD, on behalf of the United States, Japan, France, Sweden, Switzerland and Greece, addressed a formal complaint letter before Christmas 2006 to the Foreign Office, seeking explanation as to why the investigation had been discontinued. [cite web|url=http://www.oecd.org/document/12/0,2340,en_2649_37447_38251148_1_1_1_37447,00.html|author=OECD|title=OECD decision to re-open investigation|date=14 March 2007|accessdate=2007-04-27|publisher=OECD] Transparency International and Labour MP Roger Berry, chairman of the Commons Quadripartite Committee, urged the government to reopen the corruption investigation. [cite news| title = Watchdog chief warns Saudi arms probe 'must be re-opened' | date = 17 January 2007 | url = http://www.thisislondon.co.uk/news/article-23382130-details/Watchdog%20chief%20warns%20Saudi%20arms%20probe%20'must%20be%20re-opened'/article.do | publisher = Evening Standard]

In a newspaper interview, Robert Wardle, head of the Serious Fraud Office, acknowledged that the decision to terminate the investigation may have damaged "the reputation of the UK as a place which is determined to stamp out corruption". [cite news|first=Sylvia|last=Pfeifer|coauthors=Helen Power|title= I like shooting things|work=Daily Telegraph|date=2007-07-15|url=http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/07/15/ccsfo115.xml]

Judicial review

A judicial review of the decision by the SFO to drop the investigation was granted on 9 November 2007. [cite news|title=Court to study BAE fraud decision |url=http://news.bbc.co.uk/1/hi/business/7086997.stm |work=BBC News |publisher=BBC |date=2007-11-09 |accessdate=2007-12-04] On 10 April 2008 the High Court ruled that the SFO "acted unlawfully" by dropping its investigation. [cite news|title=SFO unlawful in ending BAE probe
url= http://news.bbc.co.uk/1/hi/business/7339231.stm|work=BBC News|publisher=BBC|date= 2008-04-10|accessdate= 2008-04-18] "The Times" described the ruling as "one of the most strongly worded judicial attacks on government action" which condemned how "ministers 'buckled' to 'blatant threats' that Saudi cooperation in the fight against terror would end unless the ...investigation was dropped." [cite news |first=Frances |last=Gibb |coauthors=Webster, Philip |title=High Court rules that the halt to BAE investigation was 'unlawful, a threat to British justice’ |url=http://www.timesonline.co.uk/tol/news/politics/article3724411.ece |work=The Times |publisher=Times Newspapers|date=2008-04-11 |accessdate=2008-04-27 ]

On 24 April the SFO was granted leave to appeal to the House of Lords against the ruling. [cite news|title=SFO allowed to contest BAE ruling |url= http://news.bbc.co.uk/1/hi/business/7364622.stm|work=BBC News|publisher=BBC|date= 2008-04-24|accessdate= 2008-04-24] . There was a two-day hearing before the Lords on 7 and 8 July 2008. [cite news |first=Rob|last=Evans|coauthors=Leigh, David |title=Government 'did not try' to fend off Saudi inquiry threats |url=http://www.guardian.co.uk/politics/2008/jul/09/houseofcommons.saudiarabia |work=The Guardian |publisher=Guardian Newspapers |date=2008-07-09 |accessdate=2008-07-25] On 30 July the House of Lords unanimously overturned the High Court ruling, stating that the decision to discontinue the investigation was lawful. [cite news|title=Lords overturn Saudi probe ruling |url= http://news.bbc.co.uk/1/hi/business/7532714.stm|work=BBC News|publisher=BBC|date= 2008-07-30|accessdate= 2008-07-30]

U.S. Department of Justice investigation

On 26 June 2007 BAE announced that the United States Department of Justice had launched its own investigation into Al Yamamah. It was looking into allegations that a U.S. bank had been used to funnel payments to Prince Bandar. [cite news|author=Associated Press|title=BAE says U.S. is investigating dealings with Saudi Arabia|date=2007-06-26|work=International Herald Tribune|url=http://www.iht.com/articles/ap/2007/06/26/business/EU-FIN-COM-Britain-BAE-Saudi.php] On 19 May 2008 BAE confirmed that its CEO Mike Turner and non-executive director Nigel Rudd had been detained "for about 20 minutes" at George Bush Intercontinental and Newark airports respectively the previous week and that the DOJ had issued "a number of additional subpoenas in the US to employees of BAE Systems plc and BAE Systems Inc as part of its ongoing investigation".cite news |first=Suzy |last=Jagger |title=BAE accused of being uncooperative with US investigators |url= http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article3964882.ece |work=The Times |publisher=Times Newspapers |date=2008-05-19 |accessdate=2008-05-19 ] "The Times" suggests that, according to Alexandra Wrage of Trace International, such "humiliating behaviour by the DOJ" is unusual toward a company that is co-operating fully.

ee also

*Wafic Saïd

References

External links

* [http://www.guardian.co.uk/armstrade/story/0,,1975501,00.html] - OECD to press Blair over BAE inquiry December 2006
* [http://www.geocities.com/saudhouse_p/al-yamam.htm] - Al Yamamah Scandal.
* [http://www.angloarabia.com/] - The Al-Yamamah Connection : bombs, bribery and BAE Systems.
* [http://www.corpwatch.org/article.php?id=9008 Corp Watch - BAE System's Dirty Dealings] - November 2003
* [http://www.guardian.co.uk/saudi/story/0,11599,1014975,00.html Out of Arms Way] - The Guardian - August 2003
* [http://www.corruptionisacrime.com Corruption is a Crime] - Site by the Liberal Democrats on Al Yamamah and other arms deals