Feeds

BAE cops to arms-deal violation, pays $400m US fine

Also £30m in UK over shady Tanzanian radar deal

Top three mobile application threats

UK-headquartered but nowadays US-centred arms globocorp BAE Systems has confessed to corporate wrongdoing and will pay hefty fines on both sides of the Atlantic.

Most of today's revelations in the case are unsurprising - BAE has reportedly confessed to violations under US law with respect to aspects of the vast, highly controversial al-Yamamah deal of the 1980s and 90s under which it supplied a variety of jets and other kit to Saudi Arabia.

The firm has also settled with the UK's Serious Fraud Office over a deal in which it sold Tanzania a radar system in 1999.

These investigations related to corruption - alleged payment of kickbacks to officials of the purchasing countries. The rough outlines of the cases were well known, and regardless of legal wrangling in western courts such bribery is well-nigh universal in developing-world arms deals.

The company has admitted to violation of US rules across a number of countries and agreed to pay a $400m fine to Washington over these and al-Yamamah.

According to an SFO statement, BAE "will plead guilty in the [UK] Crown Court to an offence under section 221 of the Companies Act 1985 of failing to keep reasonably accurate accounting records in relation to its activities in Tanzania."

It adds, "The company will pay £30 million comprising a financial order to be determined by a Crown Court judge with the balance paid as an ex gratia payment for the benefit of the people of Tanzania."

Today BAE may finally have put its bribery-haunted past behind it: the firm admits to no other such activities in recent years, when they became unambiguously illegal under UK law.

More detail on the US end of the case as we get it. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Intel sees 'signs of improvement in the PC business' but earnings remain 'Meh...'
Prospects for the future, however, please Wall Street money men
What's a right pain in the ASCII for IBM? Its own leech-like hardware biz
Keep your eyes on our cloud while we remove this pesky thing, say execs
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.