Deception in High Places

Two of the biggest UK arms deals with Saudi Arabia have been investigated by the Serious Fraud Office.  The investigation into Al Yamamah (now known as the Saudi British Defence Co-Operation Programme) ended in 2006.  The investigation into the SANGCOM project is on-going.

The US investigation into Al Yamamah resulted in the conviction of the prime contractor (BAE Systems) for dubious conduct in that and other arms deals.  In particular, “the actions of BAE Systems impeded U.S. efforts to ensure international trade is free of corruption”.  In the UK, the Serious Fraud Office’s investigation was curtailed after heavy pressure from the Saudi Arabian Government and British establishment.

This left some mysteries unresolved – what did the UK’s Ministry of Defence know about the questionable practices that went on during the Al Yamamah deal?  What, if anything, did officials do about it?  But, much more importantly, what has the Ministry of Defence done since to prevent a recurrence?

At the end of March the Organisation for Economic Co-operation and Development (OECD) published its latest report on steps taken to implement and enforce the OECD Anti-Bribery Convention in the United Kingdom.

This report shows the jury is still out on seriousness of the UK’s commitment to act against foreign bribery by UK companies or nationals. So far, since the Bribery Act 2010 came into force almost three years ago, there has been no conviction of anyone for foreign bribery under the Act. And last year, in 2013, there was only one conviction of someone for foreign bribery under the previous legislation (down from three in 2012).