OECD Report Attacks British Failure to Tackle Corporate Bribery and Corruption
THE TELEGRAPH: Britain's failure to tackle corporate bribery and corruption allegations was severely criticised in a report started after the Government blocked an investigation into a huge arms deal between BAE Systems and Saudi Arabia.

The Organisation for Economic Cooperation and Development said it was "disappointed and seriously concerned about the UK's continued failure to address deficiencies in its laws on bribery of foreign public officials and on corporate liability for foreign bribery".

Compiled by the OECD's anti-corruption working group, the report said that British law makes it "very difficult for prosecutors to bring an effective case against a company for alleged bribery offences".

And the Government was slated for its failure to successfully prosecute a single firm for bribery, despite ratifying the body's anti-bribery convention 10 years ago.

The strength of criticism and lack of diplomatic language used in the report will be embarrassing for the Government, which in 2006 urged the Serious Fraud Office to drop an investigation into BAE's Al Yamamah contract with Saudi.

Earlier this year the Law Lords said the SFO was right to drop the investigation on national security grounds. BAE Systems has always denied any wrongdoing.

The OECD usually carries out reviews on members every two years, but decided to undertake an extra investigation of the UK's enforcement of the anti-bribery convention following the controversial BAE decision.

The body urged Britain to rapidly bring its legislation into line with its international obligations under the convention. >>> By Russell Hotten | October 17, 2008

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Al Yamamah: BAE Bosses Detained by US Authorities
Photo of Mike Turner, chief executive of BAE Systems, courtesy of The Sunday Telegraph
THE SUNDAY TELEGRAPH: Two senior executives at Britain's biggest defence company were detained last week by American authorities investigating corruption allegations, the Telegraph has learnt.

Mike Turner, the chief executive of BAE Systems, was held with a senior colleague as they landed in America. Personal electronic equipment, including laptops and BlackBerries, was seized and examined before the pair were released.

The detentions are part of an investigation by the US Department of Justice into allegations surrounding the £43 billion al-Yamamah arms deal with Saudi Arabia. BAE has been accused of making tens of millions of pounds in illegal payments to Saudi officials, although the company maintains it has always acted lawfully.

In December 2006 the Government announced that the Serious Fraud Office was dropping its investigation into the al-Yamamah deal, prompting political controversy. America is continuing its inquiries.

The detention of the BAE executives, understood to have been at the George Bush Intercontinental Airport in Houston, Texas, has raised serious concerns at high levels of the Government about "heavy-handed" treatment.

The detentions follow the case of the "NatWest Three", British businessmen each sentenced to 37 months in prison in America this year, and threatens to harm US-UK relations in the run-up to the Group of Eight summit of leading industrial nations in Japan in July.

About the same time as Mr Turner and his unnamed colleague were being detained last week, a number of US-based BAE executives had their homes raided by authorities, The Telegraph understands. BAE Systems Inc, a subsidiary of British-based parent BAE Systems plc, has 43,000 employees in America.

A Foreign Office official expressed concern last night about the way Mr Turner and his colleague, who were on their way to a business meeting, had been treated. He said: "It was pretty heavy-handed. They had their laptops taken away and their documents photocopied."

British officials in Washington were informed of the incident on Monday when Mr Turner, a 59-year-old father of four, alerted military contacts at the embassy. He is also understood to have called contacts in the American government.

The Foreign Office official said it was clear that the American authorities were expecting the men's arrival. "They knew they were coming and they prepared the whole thing," he said. Mr Turner, who was back home in Britain this weekend, is expected to return to the US shortly in ­connection with the corruption investigation. BAE Bosses Detained by US Investigators over Saudi Case >>> By Patrick Hennessy and Tim Shipman | May 18, 2008

THE OBSERVER:
US Detains BAE Bosses over Saudi Contracts >>> By Gaby Hinsliff | May 18, 2008

THE TELEGRAPH:
Second BAE Boss Detained in US >>> By Russell Hotten, Industry Editor | May 19, 2008

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