BAE Systems handed £280m criminal fines in UK and US

[muriel_volestrangler]

Source: BBC

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.

And it will hand over about £30m in the UK - a record criminal corporate fine.
...
"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.

Read more: http://news.bbc.co.uk/1/hi/business/8500535.stm

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See also the Mitch McConnell link with this upstanding company: http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=4254842

This means BAE Systems are still free to do business in the US; and no individuals in the company, past or present, face any personal charges. So they should be pretty happy with this. From the Guardian:

Analysts said BAE had got off relatively lightly. "While it's a substantial figure, it's less than the worst case scenario," Tina Cook at brokerage Charles Stanley told Reuters, noting that initial media reports had suggested a figure of up to £1bn from the SFO, later revised down to between £200m and £300m. "It also removes an overhang on the share price caused by uncertainty about the investigations."

BAE shares were up 2.2% in late trading as the market welcomed news of a fine that was not as high as feared.

Anti-corruption campaigners thought BAE was treated too leniently by the authorities. The Campaign Against Arms Trade said: "CAAT is extremely disappointed that the allegations about BAE will not be aired in a criminal court and that the Serious Fraud Office has accepted a plea bargain relating only to the smallest deal."

In December 2006 the SFO – amid much consternation – dropped its corruption investigations into BAE's arms sales to Saudi Arabia after direct intervention from Tony Blair, who was prime minister. He defended the decision on the grounds that the Saudis would stop co-operating on security issues. Anti-corruption groups strongly criticised Blair and in 2008 the Organisation for Economic Co-operation and Development expressed its disappointment and serious concern at the "UK's continued failure to address deficiencies in its laws on bribery of foreign public officials and on corporate liability for foreign bribery".

http://www.guardian.co.uk/world/2010/feb/05/bae-admits-bribery-saudi-yamamah

After all, this fine is less than 1% of the value of the Saudi contract. Well within the profit margin.

[Selena Harris]

1. Just coincidental timing much that this is just FINALLY settled?

And conveniently on the heels of the SCOTUS rulings regarding corporate free speeech,hmm?