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/uk/6728773.stm

The article has changed 18 times. There is an RSS feed of changes available.

Version 1 Version 2
Saudi prince 'received arms cash' Saudi prince 'received arms cash'
(about 7 hours later)
A Saudi prince received secret payments from the UK's biggest arms dealer, a BBC investigation has revealed. A Saudi prince who negotiated a £40bn arms deal between Britain and Saudi Arabia received secret payments for over a decade, a BBC probe has found.
BAE Systems made regular payments of hundreds of millions of pounds to Prince Bandar bin Sultan for more than a decade. The UK's biggest arms dealer, BAE Systems, paid hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan.
The payments were made with the full knowledge of the Ministry of Defence.The payments were made with the full knowledge of the Ministry of Defence.
Prince Bandar would not comment and BAE systems said they acted lawfully at all times. The MoD said information about the Al Yamamah deal was confidential. Prince Bandar would not comment on the investigation and BAE systems said they acted lawfully at all times.
The Prince served for 20 years as Saudi ambassador to the US. The MoD said information about the Al Yamamah deal was confidential.
Warplane deal Private plane
Up to £120m a year was sent by BAE from the UK into two Saudi embassy accounts in Washington for more than a decade. Up to £120m a year was sent by BAE from the UK into two Saudi embassy accounts in Washington.
There wasn't a distinction between the accounts of the embassy or official government accounts David CarusoAmerican bank investigatorThere wasn't a distinction between the accounts of the embassy or official government accounts David CarusoAmerican bank investigator
The BBC's Panorama programme has established that these accounts were actually a conduit to Prince Bandar, the architect of the 1980s Al Yamamah deal to sell warplanes to Saudi. The BBC's Panorama programme has established that these accounts were actually a conduit to Prince Banda for his role in the 1985 deal to sell more than 100 warplanes to Saudi.
The purpose of one of the accounts was to pay the expenses of the Prince's private Airbus.The purpose of one of the accounts was to pay the expenses of the Prince's private Airbus.
David Caruso, an investigator who worked for the American bank where the accounts were held, said Prince Bandar had been taking money for his own personal use out of accounts that seemed to belong to his government.David Caruso, an investigator who worked for the American bank where the accounts were held, said Prince Bandar had been taking money for his own personal use out of accounts that seemed to belong to his government.
He said: "There wasn't a distinction between the accounts of the embassy, or official government accounts as we would call them, and the accounts of the royal family."He said: "There wasn't a distinction between the accounts of the embassy, or official government accounts as we would call them, and the accounts of the royal family."
Mr Caruso said he understood this had been going on for "years and years".Mr Caruso said he understood this had been going on for "years and years".
"Hundreds of thousands and millions of dollars were involved," he added."Hundreds of thousands and millions of dollars were involved," he added.
Investigation stoppedInvestigation stopped
According to Panorama's sources, the payments were written into the arms deal contract in secret annexes, described as "support services".According to Panorama's sources, the payments were written into the arms deal contract in secret annexes, described as "support services".
They were authorised on a quarterly basis by the MoD.They were authorised on a quarterly basis by the MoD.
Arms deals with the Saudis have been worth billions to the UK
The payments were discovered during a Serious Fraud Office (SFO) investigation.The payments were discovered during a Serious Fraud Office (SFO) investigation.
The SFO inquiry into the Al Yamamah deal was stopped in December 2006. The SFO inquiry into the Al Yamamah deal was stopped in December 2006 by attorney general Lord Goldsmith.
Prime Minister Tony Blair said at the time it had been dropped because of national security concerns.Prime Minister Tony Blair said at the time it had been dropped because of national security concerns.
Prince Bandar served for 20 years as Saudi ambassador and is now head of the country's national security council.
Jane Corbin, from Panorama, said she believed the payments would thrust the issue back into the public domain and raise a number of questions.
Liberal Democrat Treasury spokesman Vince Cable said that if ministers in either the present or previous governments were involved there should be a "major parliamentary inquiry".
"It seems to me very clear that this issue has got to be re-opened," Mr Cable told BBC Radio 4's The World Tonight.
"It is one thing for a company to have engaged in alleged corruption overseas. It is another thing if British government ministers have approved it."