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OECD 'concerns' over Saudi probe OECD 'concerns' over Saudi probe
(10 minutes later)
There are "serious concerns" about the UK dropping a fraud probe into a Saudi arms deal, says the Organisation for Economic Co-operation and Development.There are "serious concerns" about the UK dropping a fraud probe into a Saudi arms deal, says the Organisation for Economic Co-operation and Development.
The OECD, which drew up an anti-bribery treaty signed by Britain, has been investigating the Serious Fraud Office decision announced last month.The OECD, which drew up an anti-bribery treaty signed by Britain, has been investigating the Serious Fraud Office decision announced last month.
Prime Minister Tony Blair has said he took the decision to end the probe in the interests of national security.Prime Minister Tony Blair has said he took the decision to end the probe in the interests of national security.
The OECD has said "appropriate action" would be considered. The OECD has said "appropriate action" would be considered against the UK.
The SFO had been investigating claims that defence firm BAE Systems paid bribes to secure an arms deal with the Saudis in the 1980s - something strongly denied by BAE.The SFO had been investigating claims that defence firm BAE Systems paid bribes to secure an arms deal with the Saudis in the 1980s - something strongly denied by BAE.
Terrorism fightTerrorism fight
Mr Blair said continuing with the SFO investigation would seriously damage Britain's relationship with Saudi Arabia. On Tuesday, Mr Blair said continuing with the SFO investigation would be "devastating" for Britain's relationship with Saudi Arabia.
He said it would affect national security, as Saudi Arabia was a key ally in the fight against terrorism, and the wider Middle East.He said it would affect national security, as Saudi Arabia was a key ally in the fight against terrorism, and the wider Middle East.
Mr Blair also said there were some doubts as to whether a successful prosecution could have been mounted.Mr Blair also said there were some doubts as to whether a successful prosecution could have been mounted.
The working group has serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention OECD statementThe working group has serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention OECD statement
In addition he said thousands of British jobs could be lost - although he said that was not the reason the probe was halted. OECD rules mean diplomatic or commercial considerations should not come into play in fraud probes.In addition he said thousands of British jobs could be lost - although he said that was not the reason the probe was halted. OECD rules mean diplomatic or commercial considerations should not come into play in fraud probes.
Mr Blair also hit back at reports, in the Guardian newspaper, that MI6 refused to endorse his view that the probe would damage national security, insisting the decision was not a "personal whim" but based on "the judgement of our entire system".
But critics, including the Liberal Democrats, say the government was effectively blackmailed into the decision, after reports the Saudis were threatening to pull out of another £6bn deal with BAE.But critics, including the Liberal Democrats, say the government was effectively blackmailed into the decision, after reports the Saudis were threatening to pull out of another £6bn deal with BAE.
Crucial importanceCrucial importance
In a statement on Thursday, the OECD said: "The working group has serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention."In a statement on Thursday, the OECD said: "The working group has serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention."
Secretary General Angel Gurria said "appropriate action" would be considered, after its working group on bribery published its two-yearly report on the UK's compliance with the convention in March.Secretary General Angel Gurria said "appropriate action" would be considered, after its working group on bribery published its two-yearly report on the UK's compliance with the convention in March.
In the House of Lords earlier, Attorney General, Lord Goldsmith said: "It is very important to make it clear that dropping the investigation into alleged bribes paid by BAE Systems - and it was not an entirely comfortable decision - doesn't mean we are backing off in any way from our commitment to tackling international corruption."In the House of Lords earlier, Attorney General, Lord Goldsmith said: "It is very important to make it clear that dropping the investigation into alleged bribes paid by BAE Systems - and it was not an entirely comfortable decision - doesn't mean we are backing off in any way from our commitment to tackling international corruption."
Earlier this week the Guardian newspaper reported that MI6 had refused to endorse the claim the probe would harm the UK's national interest. Lord Goldsmith also denied reports of a rift between ministers and the secret intelligence services over the decision to axe the probe.
But Lord Goldsmith said: "All relevant agencies were clear about the crucial importance of UK-Saudi co-operation in the fight against terrorism and the damage to UK interests, and potentially UK lives, if that co-operation were withdrawn." "All relevant agencies were clear about the crucial importance of UK-Saudi co-operation in the fight against terrorism and the damage to UK interests, and potentially UK lives, if that co-operation were withdrawn," he said.