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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Saudi Arabia, Al-Yamamah Contract and Corruption: The Serious Fraud Office Acted Unlawfully
The judges had harsh words for the attitude of the SFO and the Blair government in never even considering the option of telling the Saudis their threats would be ignored.

"No one suggested to those uttering the threat that it was futile, that the United Kingdom's system of democracy forbad pressure being exerted on an independent prosecutor whether by the domestic executive or by anyone else; no-one even hinted that the courts would strive to protect the rule of law and protect the independence of the prosecutor by striking down any decision he might be tempted to make in submission to the threat."
THE GUARDIAN: The Serious Fraud Office (SFO) acted unlawfully in dropping an investigation into alleged bribery in an arms deal between BAE Systems and Saudi Arabia, the high court ruled today.

In a stunning victory for the activist groups that launched the legal challenge, the two judges said Tony Blair's government and the SFO caved in too readily to threats by Saudi Arabia over intelligence sharing and trade.

Lord Justice Moses and Justice Sullivan, using some scathing language, rejected the SFO's argument that it was powerless to resist the Saudi threats.

"So bleak a picture of the impotence of the law invites at least dismay, if not outrage," they said.

"Had such a threat been made by one who was subject to the criminal law of this country, he would risk being charged with an attempt to pervert the course of justice."

To give in so easily, the judges said, "merely encourages those with power, in a position of strategic and political importance, to repeat such threats, in the knowledge that the courts will not interfere with the decision of a prosecutor to surrender".

Campaign Against Arms Trade (CAAT) and Corner House Research had sought a review of the decision by the SFO director, Robert Wardle, in December 2006 to drop the investigation into allegations of bribery and corruption over the £43bn Al-Yamamah arms deal, agreed by the Thatcher government in 1985.

"No one, whether in this country or outside, is entitled to interfere with the course of our justice," Moses and Sullivan ruled. SFO Wrong to Drop BAE Inquiry, Court Rules >>> By Peter Walker and agencies | April 10, 2008

THE GUARDIAN:
The Complet High Court Judgement

Summary of High Court Judgement

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FINANCIAL TIMES:
UK ‘Unlawfully’ Scrapped BAE Probe: ”No-one, whether within this country or outside, is entitled to interfere with the course of our justice,” Lord Justice Moses told the court. “We intervene in fulfilment of our responsibility to protect the independence of the director and of our criminal justice system from threat.“ By Megan Murphy, Law Courts Correspondent | April 10, 2008

BBC:
SFO Unlawful in Ending BAE Probe

Cross-posted at A New Dark Age Is Dawning

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Secret Papers Reveal Threats from Prince Bandar If British Government Refused to Drop Inquiry into Corruption at BAE
Photo of Prince Bandar, head of Saudi Arabia’s national security, courtesy of The Guardian
THE GUARDIAN: Saudi Arabia's rulers threatened to make it easier for terrorists to attack London unless corruption investigations into their arms deals were halted, according to court documents revealed yesterday.

Previously secret files describe how investigators were told they faced "another 7/7" and the loss of "British lives on British streets" if they pressed on with their inquiries and the Saudis carried out their threat to cut off intelligence.

Prince Bandar, the head of the Saudi national security council, and son of the crown prince, was alleged in court to be the man behind the threats to hold back information about suicide bombers and terrorists. He faces accusations that he himself took more than £1bn in secret payments from the arms company BAE.

He was accused in yesterday's high court hearings of flying to London in December 2006 and uttering threats which made the prime minister, Tony Blair, force an end to the Serious Fraud Office investigation into bribery allegations involving Bandar and his family.

The threats halted the fraud inquiry, but triggered an international outcry, with allegations that Britain had broken international anti-bribery treaties.

Lord Justice Moses, hearing the civil case with Mr Justice Sullivan, said the government appeared to have "rolled over" after the threats. He said one possible view was that it was "just as if a gun had been held to the head" of the government.

The SFO investigation began in 2004, when Robert Wardle, its director, studied evidence unearthed by the Guardian. This revealed that massive secret payments were going from BAE to Saudi Arabian princes, to promote arms deals.

Yesterday, anti-corruption campaigners began a legal action to overturn the decision to halt the case. They want the original investigation restarted, arguing the government had caved into blackmail. BAE: secret papers reveal threats from Saudi prince - Spectre of 'another 7/7' led Tony Blair to block bribes inquiry, high court told >>> By David Leigh and Rob Evans

LISTEN TO GUARDIAN AUDIO:
'It was remarkable the way the government had just rolled over': Two pressure groups are appealing against the decision to drop an investigation into BAE's dealings with Saudi Arabia

THE GUARDIAN:
A cover-up laid bare: court hears how SFO inquiry was halted: Papers show how arms giant tried to avoid revealing secrets; Saudi threats meant 'no other choice' but to stop investigation

THE GUARDIAN:
Full Coverage: The BAE Files

DAILY MAIL:
Blair accused of forcing BAE fraud probe to fold by applying 'irresistible pressure

THE INDEPENDENT:
Blair used 'irresistible pressure' to halt investigation into BAE-Saudi arms deal By Robert Verkaik, Law Editor

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