Publication: The Weekender Issued: Date: 2007-01-20 Reporter: Jonathan Katzenellenbogen Reporter:

NPA Agrees to Work with UK in Probe of SA’s BAE Arms Deal

 

Publication 

The Weekender

Date

2007-01-20

Reporter

Jonathan Katzenellenbogen

Web Link

www.bday.co.za

 

Six months after the first request, the National Prosecuting Authority (NPA) has agreed to co-operate *1 with the UK Serious Fraud Office’s (SFO’s) investigation of BAE Systems’ involvement in SA’s multibillion-rand arms deal.

This came just days after mounting political pressure on British Prime Minister Tony Blair to let the probe of BAE’s dealings in SA and Tanzania go ahead.

An investigation of BAE’s dealings with Saudi Arabia was controversially dropped last month, with “national security interests” being cited as the reason. It has been alleged that BAE Systems operated a slush fund to pay members of the Saudi Royal Family.

The Saudis had reportedly threatened to cancel arms purchases from the UK if the investigation went ahead.

NPA spokesman Makhosini Nkosi said on Friday that “we are in the process of effecting the process” of co-operation with the SFO investigation. However, he would not be drawn on what information the SFO had requested from SA.

The NPA’s willingness to co-operate comes six months after the initial request for information in the investigation that began two-and-a-half years ago. Earlier in the week SFO spokesman David Jones said the “SFO is seeking co-operation from SA. That co-operation has yet to be executed.”

The SFO is said to be looking into allegations that BAE Systems paid R1bn in commissions to individuals in SA who were in a position to influence the arms package. SA has agreed to buy a package of 24 Hawk fighter trainers and 28 Gripen fighters from BAE Systems.

This week the leader of the UK’s Liberal Democrats, Menzies Campbell, insisted that the SFO be allowed to complete its investigation of BAE Systems’ dealing with SA.

The Organisation for Economic Co-operation and Development added to pressure on the UK government to press ahead with the probe, when its working group on the Anti-Bribery Convention voiced “serious concerns” about the decision to halt the Saudi investigation.

The working group will discuss the issue further in March.

This week, Blair strongly defended his decision to drop the corruption probe, saying it would have “materially damaged” the UK’s relationship with Saudi Arabia, which was “vital” in fighting terrorism.

But Britain’s attorney-general Lord Goldsmith said on Thursday that the decision to call off the probe was an uncomfortable one. “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 *2.”

With acknowledgements to Jonathan Katzenellenbogen and The Weekender.


*1       Hurrah, viva.


*2      His lordship speakith with forked tongue.