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| BAE handed £280m criminal fines | BAE handed £280m criminal fines |
| (9 minutes later) | |
| BAE Systems will pay fines of £280m in a deal with US and UK authorities to settle investigations into its actions in Saudi Arabia and Tanzania. | BAE Systems will pay fines of £280m in a deal with US and UK authorities to settle investigations into its actions in Saudi Arabia and Tanzania. |
| The firm will pay most of the fines in the US after admitting hiding payments it knew had a "high probability" of being used to help win contracts. | The firm will pay most of the fines in the US after admitting hiding payments it knew had a "high probability" of being used to help win contracts. |
| BAE will hand over about £30m in the UK - a record criminal corporate fine. | BAE will hand over about £30m in the UK - a record criminal corporate fine. |
| The firm said the pleas did not relate to accusations of corruption or bribery but that it "regretted" shortcomings. | The firm said the pleas did not relate to accusations of corruption or bribery but that it "regretted" shortcomings. |
| BBC business editor Robert Peston said that pleading guilty to criminal charges in Britain and America was "a serious embarrassment to BAE". | BBC business editor Robert Peston said that pleading guilty to criminal charges in Britain and America was "a serious embarrassment to BAE". |
| "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. |
| 'Anti-bribery failures' | 'Anti-bribery failures' |
| US and UK authorities have been investigating the case for about eight years, and it is believed to be the first time the two countries have coordinated such a corporate corruption "plea bargain". | US and UK authorities have been investigating the case for about eight years, and it is believed to be the first time the two countries have coordinated such a corporate corruption "plea bargain". |
| BBC business editor Robert Peston: "This is a very serious embarrassment" | BBC business editor Robert Peston: "This is a very serious embarrassment" |
| In a deal with the US Department of Justice (DoJ), BAE admitted a charge of conspiring to make false statements to the US government. | In a deal with the US Department of Justice (DoJ), BAE admitted a charge of conspiring to make false statements to the US government. |
| It is believed to relate to payments made to an unnamed Saudi official, as part of £40bn al-Yamamah contract to supply military equipment to Saudi Arabia. | |
| The DoJ gave a damning condemnation of BAE which it said had accepted "intentionally failing to put appropriate, anti-bribery preventative measures in place", despite telling the US government that these steps had been taken. | |
| It then "made hundreds of millions of dollars in payments to third parties, while knowing of a high probability that money would be passed on to foreign government decision makers to favour BAE in the award of defence contracts", the DoJ said. | |
| The British charge stems from an $39.5m contract signed in 1999 to supply a radar system to Tanzania, and relates to payments to a former marketing adviser in the east African country. | The British charge stems from an $39.5m contract signed in 1999 to supply a radar system to Tanzania, and relates to payments to a former marketing adviser in the east African country. |
| Part of the fine will be a charity payment which will go to Tanzania. | Part of the fine will be a charity payment which will go to Tanzania. |
| 'Satisfied' | 'Satisfied' |
| 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 How are arms deals done? class="" href="/2/hi/business/8500742.stm">End of the story? | |
| 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. |
| BAE, 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. | BAE, 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 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. |
| "We're satisfied with that global settlement," said chairman Dick Olver. | "We're satisfied with that global settlement," said chairman Dick Olver. |
| "It allows us to draw a very heavy line under the legacy, the historical issues. We're obviously pleased to see uncertainty removed for our shareholders." | "It allows us to draw a very heavy line under the legacy, the historical issues. We're obviously pleased to see uncertainty removed for our shareholders." |