BAE Systems 2005 AGM

BAE Systems is Europe's largest and is rapidly becoming one of the world's biggest arms companies. It continues to maintain its dominating position not least because of its massive influence over the British government. As our new report makes clear, the boundary between the UK Government and arms companies, and BAE systems in particular, is extremely blurred.

We can only assume that it is thanks to government collusion that BAE systems continues to get away with its underhand and morally reprehensible practices of selling horrendous weapons to repressive regimes and areas of conflict. This year for example, amidst continuing allegations of fraud in connection with the UK-Saudi £20 billion Al Yamamah arms-for-oil deal, the Exports Credits Guarantee Department told the Commons' Trade and Industry Committee that new anti-bribery rules had been weakened at the behest of BAE Systems.

As in previous years, CAAT supporters and other protestors attended BAE Systems' Annual General Meeting on the 4th May to challenge the company's appalling activities. New chairman Dick Olver had only just set out the agenda when disruption began, beginning what the Guardian described as Olver's 'baptism of fire'. Five token-shareholders locked themselves into a human ring and chanted 'stop the trade in torture, stop the trade in death'. Olver issued two warnings before almost a dozen stewards were forced to carry out the group, who continued to shout their demand until ejected from the building. Next came the voice of a heckler at the front of the large hall in the QEII centre, who shouted 'they're all murderers', to which the board were clearly taken aback. Then the barrage of questions set in: many of which were asked by CAAT supporters. The board of BAE Systems were tirelessly grilled about corruption, ethics, exports and pensions for over an hour and a half, though CAAT had plenty more questions it would have liked to have asked by the time proceedings ended. To a question about the investigations being carried out into BAE System's takeover target, United Defence Industries incorporation (UDI inc), Dick Olver responded with the blasé brush-off that any large company in the US has a 'suite of litigations' against it. Olver's performance was generally smooth and evasive and he had clearly anticipated having to face tricky questions, though he was unable to hide his frustration at some points during the meeting.

Meanwhile a lively protest was also taking place outside the Queen Elizabeth Conference Centre in Westminster, where the meeting was taking place, which built on the success of last year's protest. People old and young braved the grey day to highlight to passers-by the terrible business of the company inside the building. Holding banners, handing out leaflets and chatting to the public (and the police on duty) CAAT supporters made it clear that this was not a respectable company AGM. The wonderful 'Theatre of War' - a street-theatre group who support activists fighting for social justice - provided fantastic entertainment throughout the morning. Firstly, they highlighted the revolving door between BAE Systems and the government, and particularly Blair's apparent love for a deadly arms company (see picture above). Later the group premiered a new work which used comedy and colour to expose the painful truth about the British Government's role in the arms trade and nuclear weapons.

Extraordinary General Meeting

Just over a week later, BAE Systems held an Extraordinary General Meeting to authorise the acquisition of United Defense Industries and amend a detail in its method of accounting. The accompanying documentation asserted that 'no member of the BAE Systems Group is engaged in, nor (so far as BAE Systems is aware) has pending or threatened by or against it any legal or arbitration proceedings which may or have had… a significant effect on the financial position of the BAE Systems Group'. Questions from token shareholders about how this squared with the recent investigations into BAE Systems by the Serious Fraud Office were deflected by Olver with the excuse that they were of 'no relevance to the resolutions'. However BAE Systems assured shareholders that they were 'co-operating 100%' with the SFO, though they gave nothing away about what measures had taken place within the company to deal with the investigation.

The board were also questioned about the company's connection to the conflict in Iraq, given that UDI are one of the main suppliers of equipment to the US military in Iraq (and in addition to the fact that Alvis who were taken over by BAE Systems in August 2004 are the main supplier of UK armoured vehicles and tanks). However, any suggestion that the company had any interest in the continuing conflict in Iraq were quickly averted with the reply that UDI is supplying to the US Defence department and questions about Iraq were irrelevant. To questions about the apparent increase in its US operations, Dick Olver confirmed that with the acquisition of UDI, around 40% of its employees would now be in the US and that they were looking forward to welcoming new US members onto the board. Perhaps they'll be in position in time for next year's AGM…

Download BAE Systems in the news (PDF 1mb), our handout for the protest which documents the lowlights of of BAE's activities over the past year.