LONDON, Dec.15: How the big business in affluent countries procures multi-billion dollar defence deals from the oil rich Middle East countries using big buck bribes and how their governments ignore the alleged frauds in the ‘national interest’ was on display here for the whole world to see as the Serious Fraud Office (SFO) was stopped on Thursday from investigating into the alleged wrong doings by a British company in a deal to sell weapon systems to Saudi Arabia.
The alleged bribes from Britain’s prime defence contractor were part of the £40 billion al-Yamamah contract for BAE to supply the Royal Saudi Airforce with 200 Tornado fighter jets. The Saudi royal family was understood to be furious that the SFO has been allowed to rake through the al-Yamamah deal and embarrass senior members who were involved in the procurement.
The Saudis threatened to cancel a £10 billion agreement signed with the British Government and BAE only three months ago. This deal will lead to BAE supplying the Saudis with 72 Typhoon Eurofighters and the total value of the contract could be worth as much as £20 billion over the 20-year life of the programme.
The SFO refused to comment on the development but issued a statement: “It has been necessary to balance the need to maintain the rule of law against the wider public interest.”
One recalls a similarly shamefaced statement issued by Pakistan’s NAB when earlier this year it was told by the highest authority in the country to stop investigations into sugar scandal involving cabinet ministers?
BAE, which leads the European consortium making the Eurofighter, employs about 4,800 people on the project in the UK. York University's Centre of Defence Economics estimates that the deal would support 11,000 jobs across Europe.
The deal will keep BAE’s Wharton factory in Lancashire, which employs over 9,000 people, operating at full capacity until 2014.
British companies earn £5bn a year from defence exports, and about £1.2bn from Saudi Arabia.
Lord Goldsmith, the Attorney General, told the House of Lords on Thursday that the SFO would have needed a further 18 months to complete its investigation into BAE with no certainty of being able to make a case. He said that he had spoken to the prime minister and the heads of the intelligence services and concluded it was in the national interest to stop the investigation.
He told the Lords: “They (the PM and others) have expressed the clear view that continuation of the investigation would cause serious damage to UK/Saudi security, intelligence and diplomatic co-operation, which is likely to have seriously negative consequences for the UK public interest in terms of both national security and our highest priority foreign policy objectives in the Middle East.”
Norman Lamb, the Liberal Democrat MP who has followed the case closely, was quoted by the media saying: “If ever there was a final nail in the coffin of this government’s reputation this is it. Coming a fortnight after the Typhoon threat from the Saudis this destroys Britain’s reputation for good governance.”
Trying to give what appeared to be a moral spin to his government’s decision on the SFO investigations Prime Minister Tony Blair said on Friday: "Leave aside the effect on thousands of British jobs and billions worth of pounds for British industry, leaving that to one side.
"Our relationship with Saudi Arabia is vitally important for our country in terms of counter-terrorism, in terms of the broader Middle East, in terms of helping in respect of Israel and Palestine. That strategic interest comes first."
One wonders what would happen if one day the Saudis and other oil rich Middle Eastern countries decide to use this highly effective commercial clout of theirs for better things like nudging the friends of Israel in the capitals of rich countries to abandon their immoral and unjustified support to Tel Aviv in its oppressive war against the Palestinian people?
