This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7341925.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Brown urged to reopen arms probe | |
| (about 1 hour later) | |
| Gordon Brown is coming under pressure to reopen the Serious Fraud Office inquiry into the multi-billion pound arms deal between BAE and Saudi Arabia. | Gordon Brown is coming under pressure to reopen the Serious Fraud Office inquiry into the multi-billion pound arms deal between BAE and Saudi Arabia. |
| Liberal Democrat leader Nick Clegg said the investigation, which was suspended in 2006, must be allowed to continue. | Liberal Democrat leader Nick Clegg said the investigation, which was suspended in 2006, must be allowed to continue. |
| The High Court ruled that the SFO acted unlawfully by dropping the corruption inquiry into the £43bn deal. | The High Court ruled that the SFO acted unlawfully by dropping the corruption inquiry into the £43bn deal. |
| BAE was accused of illegal payments to Saudi officials, but the defence company maintains it acted lawfully. | BAE was accused of illegal payments to Saudi officials, but the defence company maintains it acted lawfully. |
| The High Court said the decision to halt the inquiry represented an "abject surrender" to pressure from a foreign government. | The High Court said the decision to halt the inquiry represented an "abject surrender" to pressure from a foreign government. |
| 'Blatant threats' | |
| Lord Justice Moses said that the SFO and the government had given into "blatant threats" that Saudi co-operation in the fight against terror would end unless the probe into corruption was halted. | Lord Justice Moses said that the SFO and the government had given into "blatant threats" that Saudi co-operation in the fight against terror would end unless the probe into corruption was halted. |
| The legal challenge had been made by Corner House and the Campaign Against Arms Trade (CAAT), who said the SFO decision was influenced by government concerns about trade and diplomatic ties with Saudi Arabia. | The legal challenge had been made by Corner House and the Campaign Against Arms Trade (CAAT), who said the SFO decision was influenced by government concerns about trade and diplomatic ties with Saudi Arabia. |
| AL-YAMAMAH TIMELINE 1985: Britain signs deal to sell 72 Tornados and Hawk jets to SaudisMay 2004: Guardian reports MOD police are investigating £60m payments made during dealNov 2004: BAE confirms it is being investigated by SFO, but denies wrongdoing1 Dec 2006: French firm Dassault in talks to sell the Rafale, a rival to Eurofighter, to Saudi Arabia. 14 Dec 2006: MPs told SFO probe has been stopped17 Jan 2007: OECD anti-bribery group has "serious concerns" about the decisionJune 2007: BAE says it is being investigated by US justice departmentApril 2008: High Court rules the SFO acted unlawfully Q&A: The al-Yamamah deal row | |
| The SFO said national security would have been undermined by the inquiry. | The SFO said national security would have been undermined by the inquiry. |
| Following the High Court ruling, Susan Hawley, from The Corner House, said it was a "great day for British justice". | Following the High Court ruling, Susan Hawley, from The Corner House, said it was a "great day for British justice". |
| "If he [Gordon Brown] is serious about corruption, then he needs to show that Britain really means business and they are not going to pick and choose which cases are convenient to them and which aren't," she said. | "If he [Gordon Brown] is serious about corruption, then he needs to show that Britain really means business and they are not going to pick and choose which cases are convenient to them and which aren't," she said. |
| "In effect, the government needs to back off and it would be a scandal if they try to intervene again and get this stopped on national security grounds." | "In effect, the government needs to back off and it would be a scandal if they try to intervene again and get this stopped on national security grounds." |
| Symon Hill, of CAAT, said: "During Tony Blair's time in government, Robin Cook wrote in his diary that the head of BAE had the keys to the garden door at No 10. | Symon Hill, of CAAT, said: "During Tony Blair's time in government, Robin Cook wrote in his diary that the head of BAE had the keys to the garden door at No 10. |
| "If Gordon Brown wants to show that things have moved on since those days, he needs to get the locks changed." | "If Gordon Brown wants to show that things have moved on since those days, he needs to get the locks changed." |
| Mr Clegg told BBC Two's Newsnight programme that key questions still needed to be answered. | Mr Clegg told BBC Two's Newsnight programme that key questions still needed to be answered. |
| "The fraud office needs to now proceed with the original investigation which was suspended," he said. | "The fraud office needs to now proceed with the original investigation which was suspended," he said. |
| "Second, I think we do want an independent inquiry into the way in which political pressure, inappropriately in my view, was brought to bear on the director of the Serious Fraud Office." | "Second, I think we do want an independent inquiry into the way in which political pressure, inappropriately in my view, was brought to bear on the director of the Serious Fraud Office." |
| BBC News political correspondent James Hardy said there was no word yet on how Mr Brown would react, but it remained possible that the High Court would tell the SFO to reactivate the inquiry. | BBC News political correspondent James Hardy said there was no word yet on how Mr Brown would react, but it remained possible that the High Court would tell the SFO to reactivate the inquiry. |
| Downing Street said in a statement: "The SFO are carefully considering the implications of the judgement and the way forward." | Downing Street said in a statement: "The SFO are carefully considering the implications of the judgement and the way forward." |
| 'Serious damage' | 'Serious damage' |
| The SFO's inquiry was into the al-Yamamah deal with Saudi Arabia, which was first signed in 1985 but ran into the 1990s. | The SFO's inquiry was into the al-Yamamah deal with Saudi Arabia, which was first signed in 1985 but ran into the 1990s. |
| Under the agreement, BAE sold Saudi Arabia Tornado and Hawk jets and other assorted weapons. The deal also included long-running maintenance and training contracts. | Under the agreement, BAE sold Saudi Arabia Tornado and Hawk jets and other assorted weapons. The deal also included long-running maintenance and training contracts. |
| In December 2006, the then-Attorney General, Lord Goldsmith, announced that the SFO was suspending its inquiry. | In December 2006, the then-Attorney General, Lord Goldsmith, announced that the SFO was suspending its inquiry. |
| Lord Goldsmith said its continuation would have caused "serious damage" to UK-Saudi relations and, in turn, threatened national security. | Lord Goldsmith said its continuation would have caused "serious damage" to UK-Saudi relations and, in turn, threatened national security. |
| Saudi Arabia is also reported to have threatened to cancel last year's £20bn deal to buy 72 Eurofighter Typhoon jets from BAE Systems. | Saudi Arabia is also reported to have threatened to cancel last year's £20bn deal to buy 72 Eurofighter Typhoon jets from BAE Systems. |