Court allows challenge on BAE probe
Last Updated: Thursday, 10 April 2008, 14:00 GMT-
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The Serious Fraud Office's decision to drop its investigation
into alleged bribery and corruption involving arms deals between
BAE Systems and Saudi Arabia has been overturned by the High Court.
The ruling was an extraordinary victory for anti-bribery pressure
group Corner House Research and the Campaign Against Arms Trade (CAAT).
The Serious Fraud Office (SFO) investigation arose out of BAE's
£43 billion Al-Yamamah arms deal with Saudi Arabia in 1985, which
provided Tornado and Hawk jets plus other military equipment.
In December 2006, the then attorney general, Lord Goldsmith,
announced that the investigation into the arms company was to
be discontinued.
Tony Blair, prime minister at the time, said that the Saudis
had privately threatened to cut intelligence co-operation with
Britain unless the inquiry was stopped.
Lord Justice Moses and Mr Justice Sullivan, sitting at the
High Court in London, ruled that SFO director Robert Wardle
"was required to satisfy the court that all that could reasonably
be done had been done to resist the threat. He has failed to do so."
Although the court ruled the SFO decision unlawful, it made no
formal orders and will consider what orders to make at a further
hearing.
It is understood that the most likely course will be that
the SFO will have to reconsider its decision.
Documents released to the court alleged that threats had been
made by the Saudis to make it easier for terrorists to attack
London by holding back security information. The judges heard
investigators were told there could be "another 7/7" with the
loss of "British lives on British streets".
Prince Bandar, the head of the Saudi national security council
and son of the crown prince, was alleged to be behind the threats.