BAE execs detained in relation to corruption allegations
Sunday, 18 May 2008 12:18
US authorities are investing allegations surrounding an arms deal with Saudi Arabia
Two executives from defence firm BAE Systems were detained by US authorities in Texas last week, in the latest development in the department of justice's probe into the company's alleged corruption in dealings with Saudi Arabia.
Chief executive Mike Turner and a senior colleague were held in Houston, leaving a question mark hanging over the possible success of the firm's bid for US defence company DRS Systems, reports the Sunday Telegraph.
Although the UK's Serious Fraud Office (SFO) has dropped the investigation into BAE's actions after both Tony Blair and Gordon Brown said they would be damaging to relations with Saudi Arabia, the US has continued to pursue the investigation.
BAE has strenuously denied allegations it illegally paid Saudis £1 billion as part of a deal for Al-Yamanah jet fighters during the 1980s and 1990s.
It is expected that Mr Turner will shortly have to return to the US in connection with the investigation into this alleged corruption, which could jeopardise the firm's chances to buy DRS.
Furthermore, according to the paper, US authorities also raided the homes of several BAE executives based in the country at the time of the detainment of Mr Turner and his colleague.
The British government is currently appealing on the grounds of national security a decision by the high court that the SFO unlawfully abandoned the investigation into the case.