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| BAE handed £280m criminal fines | BAE handed £280m criminal fines |
| (10 minutes later) | |
| BAE Systems is to pay a fine of $400m (£250m) after pleading guilty to a charge of conspiring to make false statements to the US government. | BAE Systems is to pay a fine of $400m (£250m) after pleading guilty to a charge of conspiring to make false statements to the US government. |
| The UK's largest defence group has also reached agreement with the UK Serious Fraud Office to plead guilty to breach of duty to keep accounting records. | The UK's largest defence group has also reached agreement with the UK Serious Fraud Office to plead guilty to breach of duty to keep accounting records. |
| That case is in relation to payments to a former marketing adviser in Tanzania. | That case is in relation to payments to a former marketing adviser in Tanzania. |
| In relation to the UK offence, it will pay a penalty of £30m, some of which will be a fine, some a charity payment. | In relation to the UK offence, it will pay a penalty of £30m, some of which will be a fine, some a charity payment. |
| BAE's directors are relieved at what they see as a final settlement of a controversy that has dogged the company for years Robert Peston Read Robert's blog class="" href="/2/hi/business/8284853.stm">How are arms deals done? | |
| The charity payment will go to Tanzania. | The charity payment will go to Tanzania. |
| The last of the offences was committed in 2002. BAE has since reformed the way it conducts business. | The last of the offences was committed in 2002. BAE has since reformed the way it conducts business. |
| However, BBC business editor Robert Peston said that pleading guilty to criminal charges in Britain and America was "a serious embarrassment to BAE". | However, BBC business editor Robert Peston said that pleading guilty to criminal charges in Britain and America was "a serious embarrassment to BAE". |
| Saudi deal | Saudi deal |
| The US fine, agreed with the Department of Justice, relates to undertakings it gave to the US government in 2000 and 2002 in relation to the probity of the way it conducts business. | The US fine, agreed with the Department of Justice, relates to undertakings it gave to the US government in 2000 and 2002 in relation to the probity of the way it conducts business. |
| It is understood that the Department of Justice concluded that BAE breached these undertakings in relation to payments and support services provided to an unnamed Saudi official, as part of the £40bn al-Yamamah contract to supply military equipment to Saudi Arabia. | It is understood that the Department of Justice concluded that BAE breached these undertakings in relation to payments and support services provided to an unnamed Saudi official, as part of the £40bn al-Yamamah contract to supply military equipment to Saudi Arabia. |
| There was also an infringement of restrictions on the supply of sensitive US technology in deals to supply aircraft in Hungary and the Czech Republic. | There was also an infringement of restrictions on the supply of sensitive US technology in deals to supply aircraft in Hungary and the Czech Republic. |
| Although the UK penalty is far less than Britain's Serious Fraud Office was seeking, it is thought to be a record for a criminal offence by a company in the UK. | Although the UK penalty is far less than Britain's Serious Fraud Office was seeking, it is thought to be a record for a criminal offence by a company in the UK. |
| The British charge stems from an £88m contract signed in 1999 to supply a radar system to Tanzania. | The British charge stems from an £88m contract signed in 1999 to supply a radar system to Tanzania. |
| "Although the fines will be seen by some as damaging to one of the UK's most significant companies, BAE's directors are relieved at what they see as a final settlement of a controversy that has dogged the company for years," added our business editor. | "Although the fines will be seen by some as damaging to one of the UK's most significant companies, BAE's directors are relieved at what they see as a final settlement of a controversy that has dogged the company for years," added our business editor. |
| BAE has been advised by its lawyers that the fines are fair. | BAE has been advised by its lawyers that the fines are fair. |