This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8500535.stm
The article has changed 15 times. There is an RSS feed of changes available.
| Version 8 | Version 9 |
|---|---|
| BAE handed £280m criminal fines | BAE handed £280m criminal fines |
| (10 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 £250m in the US after admitting misleading authorities about payments that had a "high probability" of being used to help win contracts. | The firm will pay £250m in the US after admitting misleading authorities about payments that 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, the UK's largest manufacturer. | |
| BBC business editor Robert Peston: "This is a very serious embarrassment" | BBC business editor Robert Peston: "This is a very serious embarrassment" |
| "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," he added. | "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," he added. |
| '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". |
| ANALYSIS By Joe Lynam, BBC Business Correspondent The sense of relief on the face of SFO director Richard Alderman was almost tangible. His organisation has been wrestling with BAE since 2004 and had been subject to quite a bit of corporate, legal and political pressure. None more so than in 2006 when it was ordered to drop its investigation into BAE's arms deal with Saudi Arabia. In the end the SFO can take some comfort in slapping a record £30m fine albeit for the innocuous offence of "breach of duty to keep accounting records". The fine for BAE though is mere loose change given it enjoyed revenues of nearly £20bn ($32bn) in 2008. A line has been drawn under the affair from the British point of view but will it restore the SFO's battered reputation for inscrutable independence? How are arms deals done? End of the story? | |
| 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. | 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. | 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. | 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. |
| 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. | |
| 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. |
| BAE has also reached agreement with the UK Serious Fraud Office to plead guilty to breach of duty to keep accounting records. | |
| '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 | 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 |
| 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." |