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'No Blair pressure' on arms deal 'Great damage' of BAE deal ruling
(about 1 hour later)
The attorney general has denied reports that Downing Street pressured him into ending a fraud probe into a BAE deal. The government has been accused of "glaring" double standards over a decision to end a fraud probe into an arms deal between Saudi Arabia and BAE.
Lord Goldsmith said the controversial decision to drop the inquiry into the arms deal with Saudi Arabia was taken by the Serious Fraud Office director. In a Lords debate, Lib Dem Baroness Williams said the decision had done "great damage", and weakened the fight against corruption.
Ministers say the probe was dropped in the interests of national security.
But critics claim ministers ignored anti-bribery commitments, to save a threatened £6bn Eurofighter deal.
Opening the debate Baroness Williams said the decision would weaken the battle against corruption in developing countries which "we have been addressing in lofty tones about good governance".
Pressure denied
She added that while many defence companies had been working hard to improve their reputation, the decision had been very damaging.
But Labour's Lord Brennan said: "I cannot imagine any ordinary citizen in this country thinking that it was irrelevant or not vital for a government to consider national security in a situation like this."
The final decision was his alone Lord Goldsmith
Earlier Attorney General Lord Goldsmith denied reports that Downing Street had pressured him into ending a fraud probe into a BAE deal.
Lord Goldsmith said the decision to drop the inquiry was taken by the Serious Fraud Office director.
"The final decision was his alone," he told the BBC."The final decision was his alone," he told the BBC.
The House of Lords are debating the decision, amid claims ministers ignored anti-bribery commitments to save a £6bn Eurofighter deal.
Earlier Lib Dem peer Lord Garden said it would be their first opportunity to question the attorney general at length, about why the two-year probe was dropped.
Now we want to look at this question of whether there can ever be a justification for bending the rule of law...in the national interest on security grounds Lord Garden
"I think we would hope to explore the issue in rather more detail then we have had the opportunity to do so far," he told BBC Radio 4's Today programme.
"Now we want to look at this question of whether there can ever be a justification for bending the rule of law, balancing the rule of law as he said, in the national interest on security grounds - which is what he claims."
BAE has always denied claims that it set up a £60m "slush fund" to secure the al-Yamamah deal in the 1980s.BAE has always denied claims that it set up a £60m "slush fund" to secure the al-Yamamah deal in the 1980s.
Strategic ally
The government says the investigation was dropped because it threatened national security, by damaging relations with Saudi Arabia - seen a key strategic ally in the so-called "war on terror".The government says the investigation was dropped because it threatened national security, by damaging relations with Saudi Arabia - seen a key strategic ally in the so-called "war on terror".
Anti-bribery law
It has also argued that there were doubts about whether a successful prosecution could be brought, as many of the allegations pre-dated 2001, when an anti-bribery convention was incorporated into British law.It has also argued that there were doubts about whether a successful prosecution could be brought, as many of the allegations pre-dated 2001, when an anti-bribery convention was incorporated into British law.
But the decision was announced weeks after reports that the Saudis were threatening to pull out of a deal to buy 72 Eurofighter jets from BAE - threatening thousands of British jobs.
There were fears a Eurofighter deal would be lostThere were fears a Eurofighter deal would be lost
But the decision was announced weeks after reports that the Saudis were threatening to pull out of a deal to buy 72 Eurofighter jets from BAE - threatening thousands of British jobs.
The Lib Dems say the government was effectively blackmailed into dropping the probe by the Saudis.The Lib Dems say the government was effectively blackmailed into dropping the probe by the Saudis.
Dropping a bribery fraud for commercial reasons would be against the rules drawn up by the anti-bribery convention drawn up by the Organisation for Economic Co-operation and Development (OECD).Dropping a bribery fraud for commercial reasons would be against the rules drawn up by the anti-bribery convention drawn up by the Organisation for Economic Co-operation and Development (OECD).
On Thursday the Guardian reported that Lord Goldsmith had changed his mind about whether there was enough evidence to bring charges against BAE, following pressure from Downing Street.On Thursday the Guardian reported that Lord Goldsmith had changed his mind about whether there was enough evidence to bring charges against BAE, following pressure from Downing Street.
But in a statement Lord Goldsmith told the BBC the decision had come from the Serious Fraud Office, which concluded that any investigation would jeopardise national security.But in a statement Lord Goldsmith told the BBC the decision had come from the Serious Fraud Office, which concluded that any investigation would jeopardise national security.
Lord Goldsmith also told the Financial Times that, if the investigation had been continued, senior Saudi royals would have been needed as essential witnesses - and he judged that it would be unrealistic to expect them to submit to questioning.Lord Goldsmith also told the Financial Times that, if the investigation had been continued, senior Saudi royals would have been needed as essential witnesses - and he judged that it would be unrealistic to expect them to submit to questioning.