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Calls to reopen Saudi arms probe Calls to reopen Saudi arms probe
(40 minutes later)
The Serious Fraud Office (SFO) has been urged to reopen its inquiry into a £43bn BAE arms deal with Saudi Arabia.The Serious Fraud Office (SFO) has been urged to reopen its inquiry into a £43bn BAE arms deal with 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 al-Yamamah deal. BAE maintains it acted lawfully.The High Court ruled that the SFO acted unlawfully by dropping the corruption inquiry into the al-Yamamah deal. BAE maintains it acted lawfully.
In a statement the SFO said it was "carefully considering the implications of the judgement and the way forward".In a statement the SFO said it was "carefully considering the implications of the judgement and the way forward".
BBC News political correspondent James Hardy said it remained possible that the High Court would tell the SFO to reactivate the inquiry.BBC News political correspondent James Hardy said it remained possible that the High Court would tell the SFO to reactivate the inquiry.
On Thursday the High Court said the decision to halt the inquiry represented an "abject surrender" to pressure from a foreign government.
'Blatant threats''Blatant threats'
On Thursday judges said the decision to halt the inquiry represented an "abject surrender" to pressure from a foreign government.
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 was brought 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. Mr Clegg told the BBC that key questions still needed to be answered.
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 rowAL-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 and has denied coming under any political pressure to drop it.
But Susan Hawley, from The Corner House, said Prime Minister Gordon Brown needed to prove that Britain was serious about dealing with corruption.
She added: "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.
"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.
"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."
The SFO said national security would have been undermined by the inquiry and SFO director Robert Wardle has said he took the decision independently and did not coming under any political pressure.
Former Foreign Office minister Dennis MacShane told BBC Radio 4's Today programme the ruling appeared undermine Parliament.
He called for a debate on "whether the government of the day can take decisions in what it perceives to be the national interest".
The legal challenge was brought 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.
Susan Hawley, from The Corner House, said Prime Minister Gordon Brown needed to prove that Britain was serious about dealing with corruption.
She added: "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."
'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.
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.
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, saying it 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.