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Calls to reopen Saudi arms probe Calls to reopen Saudi arms probe
(about 5 hours 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.
'Blatant threats''Blatant threats'
On Thursday judges said the decision to halt the inquiry represented an "abject surrender" to pressure from a foreign government.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.
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 class="" href="/1/hi/business/6729489.stm">Q&A: The al-Yamamah deal row class="" href="/1/hi/uk_politics/7342540.stm">Analysis: Brown's arms probe dilemma
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 class="" href="/1/hi/business/6729489.stm">Q&A: The al-Yamamah deal row Mr Clegg has written to the prime minister, saying the inquiry should be re-opened and a "full inquiry" be carried out into how it came to be dropped in the first place.
"The fraud office needs to now proceed with the original investigation which was suspended," he said. He also says Gordon Brown has backtracked on plans to reform the role of the attorney general in the draft Constitutional Renewal Bill and urges a rethink.
"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." And he asks the prime minister to update Parliament on the progress of other anti-corruption investigations involving Britain - including a separate US probe into BAE.
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. "How can Britain stand up to corruption and bribery abroad if we are not spotless at home?," he said.
Former Foreign Office minister Dennis MacShane told BBC Radio 4's Today programme the ruling appeared undermine Parliament. The SFO said national security would have been undermined by the inquiry and SFO director Robert Wardle has said he took the decision to drop it 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 to 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".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. The High Court case was brought by Corner House and the Campaign Against Arms Trade, 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. Susan Hawley, from The Corner House, said: "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."
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. The al-Yamamah deal with Saudi Arabia was first signed in 1985 but ran into the 1990s and involved BAE selling Tornado and Hawk jets, other weapons and 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, saying it would have caused "serious damage" to UK-Saudi relations and, in turn, threatened national security. In December 2006, the then-Attorney General, Lord Goldsmith, announced that the SFO was suspending its inquiry into the deal, saying it 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.