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SFO unlawful in ending BAE probe SFO unlawful in ending BAE probe
(20 minutes later)
The High Court has ruled that the Serious Fraud Office (SFO) acted unlawfully by dropping a corruption inquiry into a £43bn Saudi arms deal.The High Court has ruled that the Serious Fraud Office (SFO) acted unlawfully by dropping a corruption inquiry into a £43bn Saudi arms deal.
Defence firm BAE was accused of making illegal payments to Saudi officials to secure contracts, but the firm maintains that it acted lawfully.Defence firm BAE was accused of making illegal payments to Saudi officials to secure contracts, but the firm maintains that it acted lawfully.
The SFO said national security would have been undermined by the inquiry.The SFO said national security would have been undermined by the inquiry.
Two judges allowed the challenge made by Corner House and the Campaign Against Arms Trade (CATT).Two judges allowed the challenge made by Corner House and the Campaign Against Arms Trade (CATT).
The Campaign Against Arms Trade argued that the decision was illegal under an international anti-bribery convention. 'Failure of government'
In December 2006, Attorney General Lord Goldsmith announced that the SFO was suspending its inquiry. In handing down the decision on Thursday, one of the judges, Lord Justice Moses, told the High Court that the director of the SFO had failed to assure them that everything had been done to meet the rule of law.
He said continuation would have caused "serious damage" to UK-Saudi relations and, in turn, threatened national security. "No one, whether within this country or outside, is entitled to interfere with the course of our justice," he said.
"It is the failure of government and the defendant to bear that essential principle in mind that justifies the intervention of this court."
CAAT had argued that the SFO's decision to drop the probe was illegal under the Organisation for Economic Co-operation and Development's (OECD's) Anti-Bribery Convention.
'Damage'
In December 2006, the then Attorney General Lord Goldsmith announced that the SFO was suspending its inquiry.
Lord Goldsmith said its continuation would have caused "serious damage" to UK-Saudi relations and, in turn, threatened national security.
Saudi Arabia is reported to have threatened to cancel a further deal with BAE to supply it with Eurofighter Typhoon aircraft and withdraw diplomatic co-operation unless the SFO investigation was stopped.
BAE argued it would "jeopardise" the multi-billion pound Typhoon deal and "seriously affect" relations with the Saudi kingdom.
The OECD said last month that it was launching its own investigation into the decision to drop the SFO inquiry.