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| Version 0 | Version 1 |
|---|---|
| Lord Woolf to head BAE's review | Lord Woolf to head BAE's review |
| (40 minutes later) | |
| Lord Woolf, the former Lord Chief Justice of England and Wales, is to head an independent review of business practices at BAE Systems. | Lord Woolf, the former Lord Chief Justice of England and Wales, is to head an independent review of business practices at BAE Systems. |
| BBC Business Editor Robert Peston has learned that Lord Woolf is to chair an ethics committee to look into how the defence giant conducts its arms deals. | BBC Business Editor Robert Peston has learned that Lord Woolf is to chair an ethics committee to look into how the defence giant conducts its arms deals. |
| BAE's move comes after revelations about multi-million pound payments to help it win a Saudi Arabia deal. | BAE's move comes after revelations about multi-million pound payments to help it win a Saudi Arabia deal. |
| It is expected to announce other high profile appointments to the committee. | It is expected to announce other high profile appointments to the committee. |
| 'Restore confidence' | 'Restore confidence' |
| Last week, the BBC's Panorama programme disclosed that BAE had made payments running to hundreds of millions of pounds over many years to a leading member of the Saudi royal family, Prince Bandar. | Last week, the BBC's Panorama programme disclosed that BAE had made payments running to hundreds of millions of pounds over many years to a leading member of the Saudi royal family, Prince Bandar. |
| This was part of the Al Yamamah deal to supply £43bn of military equipment, signed back in the 1980s. | This was part of the Al Yamamah deal to supply £43bn of military equipment, signed back in the 1980s. |
| Lord Woolf's appointment, which is not a direct response to the Panorama programme, comes as BAE's chairman Dick Olver and the firm's non-executive directors are said to want independent verification that the company does nothing improper when winning defence contracts. | |
| They hope this will restore public confidence in the business. | They hope this will restore public confidence in the business. |
| Strong denial | Strong denial |
| Prince Bandar has "categorically" denied receiving any improper payments, and BAE said it acted lawfully at all times. | Prince Bandar has "categorically" denied receiving any improper payments, and BAE said it acted lawfully at all times. |
| The UK Ministry of Defence, which is alleged to have approved BAE's payments, has said that information about the Al Yamamah deal was confidential. | The UK Ministry of Defence, which is alleged to have approved BAE's payments, has said that information about the Al Yamamah deal was confidential. |
| BAE's payments to Prince Bandar were discovered during a Serious Fraud Office (SFO) investigation. | BAE's payments to Prince Bandar were discovered during a Serious Fraud Office (SFO) investigation. |
| The SFO inquiry into the Al Yamamah deal was stopped in December 2006 by attorney general Lord Goldsmith, after the government said it was threatening the UK's national security. | The SFO inquiry into the Al Yamamah deal was stopped in December 2006 by attorney general Lord Goldsmith, after the government said it was threatening the UK's national security. |
| The inquiry is thought to have angered Saudi Arabia, to the point where there was a risk that BAE could lose a contract to sell the new Typhoon fighter to Riyadh if it continued. | The inquiry is thought to have angered Saudi Arabia, to the point where there was a risk that BAE could lose a contract to sell the new Typhoon fighter to Riyadh if it continued. |
| Despite dropping the Saudi probe, the SFO is still investigating BAE contract wins in Africa, eastern Europe and South America. | Despite dropping the Saudi probe, the SFO is still investigating BAE contract wins in Africa, eastern Europe and South America. |
| Prince Bandar, who is the son of the Saudi defence minister, served for 20 years as US ambassador and is now head of the country's national security council. | Prince Bandar, who is the son of the Saudi defence minister, served for 20 years as US ambassador and is now head of the country's national security council. |