BAE-Saudi arms investigation could be relaunched
The government could be forced to authorise an independent investigation into the BAE-Saudi arms deal following a ruling at the High Court today.
Last year, it was alleged that BAE – Europe’s largest defence contractor – had unlawfully bribed Saudi Arabian government officials in an effort to secure a lucrative arms deal.
BAE was accused of corruption, with the company accused of having a £60 million Saudi directed bank account.
Following revelations of illegal business practice, the contractor became the subject of a Serious Fraud Office (SFO) investigation.
Highly controversially, however, the criminal investigation was halted by the then attorney general Lord Goldsmith, who claimed any further inspection of the deal would damage UK-Saudi relations and ultimately compromise national security.
But today two lobby groups won the legal right to challenge this decision, potentially paving the way for the enquiry to be reopened.
Uniting forces, the Campaign Against the Arms Trade (CAAT) and the Corner House Research group took their case to the High Court, winning the right to challenge the legality of the gagging order.
In June this year the BBC’s Panorama alleged BAE Systems “paid hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar” for his role in the deals.
When the attorney general intervened in the SFO investigation, Tony Blair was accused of whitewashing the corruption charges and paid a heavy political price as a result.
Gordon Brown will now have to decide which action to take in the face of renewed pressure to reopen the old wound.
At the High Court today, lawyers representing the two groups argued the government had not taken into account the security implications of terminating the investigation.
The groups argued that not holding the Saudi government to account over the corruption allegations would fuel resentment from around the world and give the impression the British government applies a policy of double standards when it comes to allies.
Commenting on today’s development, Liberal Democrat leader, Vince Cable said: “It is in the public interest to fully investigate the circumstances surrounding the dropping of this important investigation.
“It appears that the judiciary is more open than the British government.”
The High Court will determine whether the decision to stop the investigation was legitimate.
