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BAE fraud case hearing to start BAE inquiry 'put lives at risk'
(about 12 hours later)
Campaigners are to begin a High Court case arguing that the decision to end investigations into BAE Systems' dealings with Saudi Arabia was illegal. The government thought "British lives on British streets" would have been at risk if an arms deal inquiry had not been dropped, documents have shown.
Lawyers for two groups contend that the Serious Fraud Office's decision was influenced by hopes of winning a new arms contract from the country. The papers were released as two groups mounted a High Court challenge to the ending of a corruption inquiry into a deal between BAE and Saudi Arabia.
The SFO had been examining whether BAE gave money to Saudi officials to help secure contracts in the 1980s. A lawyer for the groups argued that the decision had been influenced by hopes of winning new contracts.
BAE, the UK's largest defence group, has always said it acted lawfully.BAE, the UK's largest defence group, has always said it acted lawfully.
'Slush fund' The Serious Fraud Office (SFO) had been examining whether BAE gave money to Saudi officials to help secure contracts in the 1980s.
The allegation investigated by the Serious Fraud Office (SFO) centred on BAE's £43bn Al-Yamamah arms deal to Saudi Arabia in 1985, which provided Tornado and Hawk jets plus other military equipment.The allegation investigated by the Serious Fraud Office (SFO) centred on BAE's £43bn Al-Yamamah arms deal to Saudi Arabia in 1985, which provided Tornado and Hawk jets plus other military equipment.
BAE was accused of operating a slush fund to help it secure the contract.BAE was accused of operating a slush fund to help it secure the contract.
The SFO inquiry into the Al Yamamah deal was stopped in December 2006 by the government, with attorney general Lord Goldsmith announcing that it was threatening the UK's national security.The SFO inquiry into the Al Yamamah deal was stopped in December 2006 by the government, with attorney general Lord Goldsmith announcing that it was threatening the UK's national security.
Campaigning groups Corner House Research and the Campaign Against Arms Trade (CAAT) will try to prove in court that hopes of winning a huge new arms contract from Saudi Arabia influenced officials. Campaigning groups Corner House Research and the Campaign Against Arms Trade (CAAT) are trying to prove in court that hopes of winning a huge new arms contract from Saudi Arabia influenced officials.
'No justification'
They will cite a letter from the then prime minister Tony Blair to the attorney general to bolster their claim.
BAE has since secured a giant new order from Saudi Arabia.
Announced in September, Saudi Arabia is buying 72 Eurofighter Typhoon jets for about £4.4bn.
Corner House, which campaigns for enforcement of the law in overseas corruption offences, said even if national security was at risk, there was still not legal justification for ending the investigation.
Britain has signed an international anti-bribery convention which specifies that investigations must not be stopped simply because they would damage relations with another country.