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BAE Systems: Difference between revisions
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BAE Systems has been investigated by the [[Serious Fraud Office (United Kingdom)|Serious Fraud Office]] (SFO) for the use of corruption to help sell arms to Chile, Czech Republic, Romania, Saudi Arabia, South Africa, Tanzania and Qatar.<ref name= "SevenCountries">{{Cite news |first= Paddy |last= Allen |title=Seven countries where BAE have been undec investigated – Bribing for Britain? |date=1 October 2009 |url= https://www.theguardian.com/world/interactive/2007/jun/07/bae.global.investigations |work=The Guardian |location=London |access-date=24 October 2009 |archive-url= https://web.archive.org/web/20091004210540/http://www.guardian.co.uk/world/interactive/2007/jun/07/bae.global.investigations |archive-date= 4 October 2009 |url-status= live}}</ref><ref name="GordonIntervene">{{Cite news |first=David |last=Leigh |title= BAe bribery case: MP urges Gordon Brown to intervene |date= 12 October 2009 |url= https://www.theguardian.com/world/2009/oct/12/bae-bribery-case-brown-intervene |work=The Guardian |location=London |access-date=24 October 2009 |archive-url= https://web.archive.org/web/20091015062957/http://www.guardian.co.uk/world/2009/oct/12/bae-bribery-case-brown-intervene |archive-date= 15 October 2009 |url-status= live}}</ref><ref name="solicitorgeneral">{{Cite news |title= BAE in several corruption probes |url= http://news.bbc.co.uk/1/hi/business/6339625.stm |publisher=BBC |date= 7 February 2007 |access-date=15 February 2007 |archive-url= https://web.archive.org/web/20070219035846/http://news.bbc.co.uk/1/hi/business/6339625.stm |archive-date= 19 February 2007 |url-status= live}}</ref> In response, BAE Systems' 2006 [[Corporate Responsibility Report]] states "We continue to reject these allegations... We take our obligations under the law extremely seriously and will continue to comply with all legal requirements around the world.<ref>{{cite web |url=http://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/PDFs/ims/2006-corporate-responsibility-report.pdf |title=Corporate Responsibility Report 2006 |access-date=7 September 2007 |publisher=BAE Systems plc |archive-url=https://web.archive.org/web/20161130061707/http://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/PDFs/ims/2006-corporate-responsibility-report.pdf |archive-date=30 November 2016 |url-status=live}}</ref> In June 2007 [[Lord Woolf]] was selected to lead what the BBC described as an "independent review.... [an] ethics committee to look into how the defence giant conducts its arms deals".<ref>{{cite news |title=Lord Woolf to head BAE's review |work=BBC News |date=11 June 2007 |url=http://news.bbc.co.uk/1/hi/business/6739805.stm |access-date=12 March 2009 |archive-url=https://web.archive.org/web/20080420083048/http://news.bbc.co.uk/1/hi/business/6739805.stm |archive-date=20 April 2008 |url-status=live}}</ref> The report, ''Ethical business conduct in BAE Systems plc – the way forward'', made 23 recommendations, measures which the company committed to implement. The finding stated that "in the past BAE did not pay sufficient attention to ethical standards in the way it conducted business", and was described by the BBC as "an embarrassing admission".<ref>{{cite news |title=BAE review seeks bribery controls |work=BBC News |date=6 May 2008 |url=http://news.bbc.co.uk/1/hi/business/7384937.stm |access-date=12 March 2009 |archive-url=https://web.archive.org/web/20080511101406/http://news.bbc.co.uk/1/hi/business/7384937.stm |archive-date=11 May 2008 |url-status=live}}</ref> | BAE Systems has been investigated by the [[Serious Fraud Office (United Kingdom)|Serious Fraud Office]] (SFO) for the use of corruption to help sell arms to Chile, Czech Republic, Romania, Saudi Arabia, South Africa, Tanzania and Qatar.<ref name= "SevenCountries">{{Cite news |first= Paddy |last= Allen |title=Seven countries where BAE have been undec investigated – Bribing for Britain? |date=1 October 2009 |url= https://www.theguardian.com/world/interactive/2007/jun/07/bae.global.investigations |work=The Guardian |location=London |access-date=24 October 2009 |archive-url= https://web.archive.org/web/20091004210540/http://www.guardian.co.uk/world/interactive/2007/jun/07/bae.global.investigations |archive-date= 4 October 2009 |url-status= live}}</ref><ref name="GordonIntervene">{{Cite news |first=David |last=Leigh |title= BAe bribery case: MP urges Gordon Brown to intervene |date= 12 October 2009 |url= https://www.theguardian.com/world/2009/oct/12/bae-bribery-case-brown-intervene |work=The Guardian |location=London |access-date=24 October 2009 |archive-url= https://web.archive.org/web/20091015062957/http://www.guardian.co.uk/world/2009/oct/12/bae-bribery-case-brown-intervene |archive-date= 15 October 2009 |url-status= live}}</ref><ref name="solicitorgeneral">{{Cite news |title= BAE in several corruption probes |url= http://news.bbc.co.uk/1/hi/business/6339625.stm |publisher=BBC |date= 7 February 2007 |access-date=15 February 2007 |archive-url= https://web.archive.org/web/20070219035846/http://news.bbc.co.uk/1/hi/business/6339625.stm |archive-date= 19 February 2007 |url-status= live}}</ref> In response, BAE Systems' 2006 [[Corporate Responsibility Report]] states "We continue to reject these allegations... We take our obligations under the law extremely seriously and will continue to comply with all legal requirements around the world.<ref>{{cite web |url=http://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/PDFs/ims/2006-corporate-responsibility-report.pdf |title=Corporate Responsibility Report 2006 |access-date=7 September 2007 |publisher=BAE Systems plc |archive-url=https://web.archive.org/web/20161130061707/http://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/PDFs/ims/2006-corporate-responsibility-report.pdf |archive-date=30 November 2016 |url-status=live}}</ref> In June 2007 [[Lord Woolf]] was selected to lead what the BBC described as an "independent review.... [an] ethics committee to look into how the defence giant conducts its arms deals".<ref>{{cite news |title=Lord Woolf to head BAE's review |work=BBC News |date=11 June 2007 |url=http://news.bbc.co.uk/1/hi/business/6739805.stm |access-date=12 March 2009 |archive-url=https://web.archive.org/web/20080420083048/http://news.bbc.co.uk/1/hi/business/6739805.stm |archive-date=20 April 2008 |url-status=live}}</ref> The report, ''Ethical business conduct in BAE Systems plc – the way forward'', made 23 recommendations, measures which the company committed to implement. The finding stated that "in the past BAE did not pay sufficient attention to ethical standards in the way it conducted business", and was described by the BBC as "an embarrassing admission".<ref>{{cite news |title=BAE review seeks bribery controls |work=BBC News |date=6 May 2008 |url=http://news.bbc.co.uk/1/hi/business/7384937.stm |access-date=12 March 2009 |archive-url=https://web.archive.org/web/20080511101406/http://news.bbc.co.uk/1/hi/business/7384937.stm |archive-date=11 May 2008 |url-status=live}}</ref> | ||
In September 2009, the SFO announced that it intended to prosecute BAE Systems for offences relating to overseas corruption. '' | In September 2009, the SFO announced that it intended to prosecute BAE Systems for offences relating to overseas corruption. ''The Guardian'' claimed that a penalty more than £500 million might be an acceptable settlement package.<ref>{{Cite news|title=SFO seeks BAE prosecution over bribery claims |url=https://www.theguardian.com/world/2009/oct/01/bae-sfo-bribery-allegations-prosecution |work=The Guardian |location=UK |date=1 October 2009 |first=David |last=Leigh |access-date=1 October 2009 |archive-url=https://web.archive.org/web/20091004210503/http://www.guardian.co.uk/world/2009/oct/01/bae-sfo-bribery-allegations-prosecution |archive-date=4 October 2009 |url-status=live}}</ref> On 5 February 2010, BAE Systems agreed to pay criminal fines of £257 million (US$400 million) to the US and £30 million to the UK.<ref>{{Cite news |title=BAE admits guilt over corrupt arms deals |url=https://www.theguardian.com/world/2010/feb/05/bae-systems-arms-deal-corruption |work=The Guardian |location=UK |date=6 February 2010 |first=David |last=Leigh |access-date=7 December 2017 |archive-url=https://web.archive.org/web/20100209002847/http://www.guardian.co.uk/world/2010/feb/05/bae-systems-arms-deal-corruption |archive-date=9 February 2010 |url-status=live}}</ref> The $400 million fine was a result of a plea bargain with the [[US Department of Justice]] (DOJ) whereby BAE Systems was convicted of felony conspiracy to defraud the United States government. This was one of the largest fines in the history of the DOJ. Judge Bates said the company's conduct involved "deception, duplicity and knowing violations of law, I think it's fair to say, on an enormous scale".<ref>{{Cite news |url=https://www.justice.gov/opa/pr/2010/March/10-crm-209.html |title=BAE Systems PLC Pleads Guilty and Ordered to Pay $400 Million Criminal Fine |date=1 March 2010 |work=US Department of Justice press release |access-date=18 December 2010 |location=Washington, DC |archive-url= https://web.archive.org/web/20101128164521/http://www.justice.gov/opa/pr/2010/March/10-crm-209.html |archive-date= 28 November 2010 |url-status= live}}</ref><ref>{{Cite news |url=https://www.independent.co.uk/news/business/news/bae-protesters-win-sfo-injunction-1914892.html |title=BAE protesters win SFO injunction |first= Alistair |last= Dawber |date=3 March 2010 |work=The Independent |location=UK |access-date=14 June 2010 |archive-url= https://web.archive.org/web/20100306234822/http://www.independent.co.uk/news/business/news/bae-protesters-win-sfo-injunction-1914892.html |archive-date=6 March 2010 |url-status= live}}</ref> BAE Systems did not directly admit to bribery, and is thus not internationally blacklisted from future contracts. Some of the £30 million penalty the company will pay in fines to the UK will be paid ''ex gratia'' for the benefit of the people of Tanzania.<ref>{{Cite news|title=BAE admits guilt over corrupt arms deals |url= https://www.theguardian.com/world/2010/feb/05/bae-systems-arms-deal-corruption |work= The Guardian |location=UK |date= 6 February 2010 |access-date=20 February 2010 |first=David |last=Leigh |archive-url= https://web.archive.org/web/20100209002847/http://www.guardian.co.uk/world/2010/feb/05/bae-systems-arms-deal-corruption |archive-date=9 February 2010 |url-status= live}}</ref> On 2 March 2010, [[Campaign Against Arms Trade]] (CAAT) and [[The Corner House (organisation)|Corner House Research]] were successful in gaining a High Court injunction on the SFO's settlement with BAE Systems; however in April 2010 the two organisations withdrew their application for a [[Judicial review in English law|judicial review]].<ref>{{Cite web|date=8 April 2010|title=Campaigners Continue to Raise Concerns About SFO-BAE Settlement Process|url=https://caat.org.uk/news/2010-04-08-2/|access-date=30 December 2020|website=caat.org.uk}}</ref> | ||
===Saudi Arabia=== | ===Saudi Arabia=== | ||
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In September 2005 ''The Guardian'' reported that banking records showed that BAE Systems paid £1 million to [[Augusto Pinochet]], the former Chilean dictator.<ref name="Pinochet">{{Cite news |first1= David |last1= Leigh |last2= Evans |first2= Rob |title= Revealed: BAE's secret £1m to Pinochet |url= https://www.theguardian.com/world/2005/sep/15/bae.freedomofinformation |work= The Guardian |location= UK |publisher= Guardian Newspapers |date= 15 September 2005 |access-date= 27 October 2006 |archive-url= https://web.archive.org/web/20130829175630/http://www.theguardian.com/world/2005/sep/15/bae.freedomofinformation |archive-date= 29 August 2013 |url-status= live}}</ref> ''The Guardian'' has also reported that "clandestine arms deals" have been under investigation in Chile and the UK since 2003 and that British Aerospace and BAE Systems made a number of payments to Pinochet advisers.<ref>{{Cite news |first= Jonathan |last= Franklin |url= https://www.theguardian.com/world/2006/jul/12/chile.drugstrade |title= Pinochet and son deny selling cocaine to Europe and US |work= The Guardian |location= London |publisher= Guardian Newspapers |date= 12 July 2006 |access-date= 14 August 2006 |archive-url= https://web.archive.org/web/20130830071946/http://www.theguardian.com/world/2006/jul/12/chile.drugstrade |archive-date= 30 August 2013 |url-status= live}}</ref> | In September 2005 ''The Guardian'' reported that banking records showed that BAE Systems paid £1 million to [[Augusto Pinochet]], the former Chilean dictator.<ref name="Pinochet">{{Cite news |first1= David |last1= Leigh |last2= Evans |first2= Rob |title= Revealed: BAE's secret £1m to Pinochet |url= https://www.theguardian.com/world/2005/sep/15/bae.freedomofinformation |work= The Guardian |location= UK |publisher= Guardian Newspapers |date= 15 September 2005 |access-date= 27 October 2006 |archive-url= https://web.archive.org/web/20130829175630/http://www.theguardian.com/world/2005/sep/15/bae.freedomofinformation |archive-date= 29 August 2013 |url-status= live}}</ref> ''The Guardian'' has also reported that "clandestine arms deals" have been under investigation in Chile and the UK since 2003 and that British Aerospace and BAE Systems made a number of payments to Pinochet advisers.<ref>{{Cite news |first= Jonathan |last= Franklin |url= https://www.theguardian.com/world/2006/jul/12/chile.drugstrade |title= Pinochet and son deny selling cocaine to Europe and US |work= The Guardian |location= London |publisher= Guardian Newspapers |date= 12 July 2006 |access-date= 14 August 2006 |archive-url= https://web.archive.org/web/20130830071946/http://www.theguardian.com/world/2006/jul/12/chile.drugstrade |archive-date= 30 August 2013 |url-status= live}}</ref> | ||
BAE Systems is alleged to have paid "secret offshore commissions" of over £7 million to secure the sale of [[HMS London (F95)|HMS ''London'']] and [[HMS Coventry (F98)|HMS ''Coventry'']] to the [[Romanian Navy]]. The company received a £116 million contract for the refurbishment of the ships prior to delivery;<ref>{{Cite news |first= David |last=Leigh |author2=Evans, Rob |url= https://www.theguardian.com/world/2006/jun/15/bae.armstrade |title=Bribery inquiry may force £7m refund to Romania |work=The Guardian |location= London |publisher=Guardian Newspapers |date=15 July 2006 |access-date=14 August 2006 |archive-url= https://web.archive.org/web/20130830053939/http://www.theguardian.com/world/2006/jun/15/bae.armstrade |archive-date=30 August 2013 |url-status=live}}</ref> however the British taxpayer only received the scrap value of £100,000 each from the sale.<ref>David Leigh and Rob Evans, [https://www.theguardian.com/armstrade/story/0,,1796377,00.html "We paid three times too much for UK frigates, Romania says"]. '' | BAE Systems is alleged to have paid "secret offshore commissions" of over £7 million to secure the sale of [[HMS London (F95)|HMS ''London'']] and [[HMS Coventry (F98)|HMS ''Coventry'']] to the [[Romanian Navy]]. The company received a £116 million contract for the refurbishment of the ships prior to delivery;<ref>{{Cite news |first= David |last=Leigh |author2=Evans, Rob |url= https://www.theguardian.com/world/2006/jun/15/bae.armstrade |title=Bribery inquiry may force £7m refund to Romania |work=The Guardian |location= London |publisher=Guardian Newspapers |date=15 July 2006 |access-date=14 August 2006 |archive-url= https://web.archive.org/web/20130830053939/http://www.theguardian.com/world/2006/jun/15/bae.armstrade |archive-date=30 August 2013 |url-status=live}}</ref> however the British taxpayer only received the scrap value of £100,000 each from the sale.<ref>David Leigh and Rob Evans, [https://www.theguardian.com/armstrade/story/0,,1796377,00.html "We paid three times too much for UK frigates, Romania says"]. ''The Guardian'', 13 June 2006.</ref> | ||
BAE Systems ran into controversy in 2002 over the abnormally high cost of a radar system sold to [[Tanzania]].<ref>{{cite news |title= Tanzania could seek radar refund |url= http://news.bbc.co.uk/1/hi/world/africa/6324169.stm |work=BBC News |date= 2 February 2007 |access-date=19 February 2007 |archive-url= https://web.archive.org/web/20070212160344/http://news.bbc.co.uk/1/hi/world/africa/6324169.stm |archive-date= 12 February 2007 |url-status= live}}</ref><ref name="gdn101219">{{cite news|last=Leigh|first=David|date=19 December 2010|title=WikiLeaks cables: Tanzania official investigating BAE 'fears for his life'|work=The Guardian|location=UK|url=https://www.theguardian.com/world/2010/dec/19/wikileaks-cables-tanzania-bae-fears|url-status=live|access-date=11 December 2016|archive-url=https://web.archive.org/web/20170209073156/https://www.theguardian.com/world/2010/dec/19/wikileaks-cables-tanzania-bae-fears|archive-date=9 February 2017}}</ref> The sale was criticised by several opposition MPs and the [[World Bank]];<ref>{{cite news |title= Tanzania radar sale 'waste of cash' |url= http://news.bbc.co.uk/1/hi/uk_politics/2044206.stm |work= BBC News |date= 14 June 2002 |access-date= 19 February 2007 |archive-url= https://web.archive.org/web/20021028010503/http://news.bbc.co.uk/1/hi/uk_politics/2044206.stm |archive-date= 28 October 2002 |url-status= live}}</ref> [[Secretary of State for International Development]] [[Clare Short]] declared that BAE Systems had "ripped off" developing nations.<ref>[http://news.bbc.co.uk/2/hi/business/8284073.stm "BAE Systems faces bribery charges"] {{Webarchive|url= https://web.archive.org/web/20091002003652/http://news.bbc.co.uk/2/hi/business/8284073.stm |date=2 October 2009}}. BBC News, 1 October 2009.</ref><ref>{{Cite news |title=BAE's government-backed rip-off |url= https://www.theguardian.com/commentisfree/2009/oct/01/bae-deal-blair-sfo |work=The Guardian |location= UK |date=1 October 2009 |access-date=1 October 2009 |first=Clare |last=Short |archive-url= https://web.archive.org/web/20091004205504/http://www.guardian.co.uk/commentisfree/2009/oct/01/bae-deal-blair-sfo |archive-date= 4 October 2009 |url-status= live}}</ref> | BAE Systems ran into controversy in 2002 over the abnormally high cost of a radar system sold to [[Tanzania]].<ref>{{cite news |title= Tanzania could seek radar refund |url= http://news.bbc.co.uk/1/hi/world/africa/6324169.stm |work=BBC News |date= 2 February 2007 |access-date=19 February 2007 |archive-url= https://web.archive.org/web/20070212160344/http://news.bbc.co.uk/1/hi/world/africa/6324169.stm |archive-date= 12 February 2007 |url-status= live}}</ref><ref name="gdn101219">{{cite news|last=Leigh|first=David|date=19 December 2010|title=WikiLeaks cables: Tanzania official investigating BAE 'fears for his life'|work=The Guardian|location=UK|url=https://www.theguardian.com/world/2010/dec/19/wikileaks-cables-tanzania-bae-fears|url-status=live|access-date=11 December 2016|archive-url=https://web.archive.org/web/20170209073156/https://www.theguardian.com/world/2010/dec/19/wikileaks-cables-tanzania-bae-fears|archive-date=9 February 2017}}</ref> The sale was criticised by several opposition MPs and the [[World Bank]];<ref>{{cite news |title= Tanzania radar sale 'waste of cash' |url= http://news.bbc.co.uk/1/hi/uk_politics/2044206.stm |work= BBC News |date= 14 June 2002 |access-date= 19 February 2007 |archive-url= https://web.archive.org/web/20021028010503/http://news.bbc.co.uk/1/hi/uk_politics/2044206.stm |archive-date= 28 October 2002 |url-status= live}}</ref> [[Secretary of State for International Development]] [[Clare Short]] declared that BAE Systems had "ripped off" developing nations.<ref>[http://news.bbc.co.uk/2/hi/business/8284073.stm "BAE Systems faces bribery charges"] {{Webarchive|url= https://web.archive.org/web/20091002003652/http://news.bbc.co.uk/2/hi/business/8284073.stm |date=2 October 2009}}. BBC News, 1 October 2009.</ref><ref>{{Cite news |title=BAE's government-backed rip-off |url= https://www.theguardian.com/commentisfree/2009/oct/01/bae-deal-blair-sfo |work=The Guardian |location= UK |date=1 October 2009 |access-date=1 October 2009 |first=Clare |last=Short |archive-url= https://web.archive.org/web/20091004205504/http://www.guardian.co.uk/commentisfree/2009/oct/01/bae-deal-blair-sfo |archive-date= 4 October 2009 |url-status= live}}</ref> | ||