CAATnews June/July 2006 - Arms Trade Shorts

Saudi alarm over BAE “slush fund” inquiry

An ongoing Serious Fraud Office inquiry into a BAE Systems “slush fund” faces a new obstacle. The attorney general Lord Goldsmith has been asked by government officials – said to be from the Ministry of Defence – to examine whether the inquiry is “in the public interest”.

The inquiry is looking into allegations that BAE Systems funded the lavish lifestyle of members of the Saudi royal family to the tune of £60m. The Saudi government has told BAE Systems’ chief executive that it is unhappy with the investigation, leading to UK government concern that Saudi Arabia may be provoked into pulling out of the UK’s biggest export deal, the Al Yamamah contract.

SUNDAY TIMES, 26/3/06

VT deal with Oman – and with London schools

VT Group is expected to secure a £400m order to supply offshore patrol ships to Oman. The deal would increase the value of the company’s Portsmouth shipyard, which it is considering selling to BAE Systems.

VT is hoping to transform itself from shipbuilder to support services firm, a move underlined by the company’s announcement that it is in talks with London’s Greenwich council to build or refurbish schools. The work would be part of the government-backed Building Schools for the Future programme.

FINANCIAL TIMES, 13/4/06; INDEPENDENT, 10/5/06

Call for greater action on corruption

A report that focuses on the UK’s dealings with Africa has accused the government of “a lack of political will at the highest levels to take a lead in fighting global corruption”. The Africa all-party parliamentary group urged the government to speed up introduction of a new anti-corruption bill and called for sanctions barring companies from public procurement contracts if they are convicted, or if there is overwhelming evidence, of corruption.

FINANCIAL TIMES, 28/3/06

UK aircraft in assaults in Nepal

The Royal Nepalese Army has been using two Islander aircraft, ironically given to Nepal as part of a package from the Conflict Prevention Fund, to support helicopter attacks on villages. While the UK claims not to have supplied lethal aid to Nepal, Amnesty International says there was no end use monitoring to ensure that aircraft were not later fitted with arms.

GUARDIAN, 11/4/06

Arms still entering Darfur

UN experts have said that arms are still pouring into Sudan’s Darfur region in violation of a UN ban. The arms come both from neighbouring countries and from overseas. Chad, Eritrea and Libya have been cited as sources.

The experts accused the Sudanese government of failing to ensure that weapons it buys from official sources do not end up in the hands of nongovernment forces in Darfur.

REUTERS 29/4/06

Italian inquiry over UK-Iraq pistol deal

A UK deal to equip the Iraqi security forces with Italian-made pistols without telling coalition partner Italy is being investigated by Italian prosecutors. The weapons were bought from Italy by the UK Ministry of Defence before being sent on to Iraq. Newspaper reports have suggested that some pistols were found in the hands of insurgents, a claim denied by the MoD. Italy has severe laws on arms exports and the company that manufactured the weapons said it believed they were to be used for Iraqi police, not the army.

Oxfam has accused the UK of failing to impose safeguards to stop pistols falling into the wrong hands.

TIMES, 1/4/06

Portillo quits BAE Systems

Former defence secretary Michael Portillo has ended his time as a director of BAE Systems to avoid potential conflict of interest with his work as a political journalist. A company spokesperson denied that Portillo had been persuaded to step down because his political connections were no longer of use. Portillo stood down as an MP in last year’s general election.

INDEPENDENT, 28/3/06

Aegis contract renewed

The private security company Aegis Specialist Risk Management has had its Iraqi contract renewed by the US government, despite an ongoing investigation into a video clip with the name “Aegis” that shows machine gun fire against civilian vehicles in Iraq.

FINANCIAL TIMES, 19/4/06

US lifts ban on arms to Indonesia

The US has lifted a seven-year ban on the sale of lethal arms to Indonesia. The announcement came just two weeks after Secretary of State Condoleezza Rice visited the Indonesian capital and called for closer ties with the military as part of an expanded “strategic partnership”. Last November the US State Department announced that it intended to waive human rights conditions on military aid and sales to Indonesia in appreciation of the country’s “unique strategic role in Southeast Asia”.

Human rights groups have opposed the restoration of military ties until the Indonesian government makes greater progress in controlling the country’s armed forces.

INTER PRESS SERVICE, 31/3/06

JSF engine funding looking likely

Two congressional committees have restored funding for an alternative engine for the Joint Strike Fighter programme despite the Pentagon having recommended its cancellation. The engine is being developed by Rolls-Royce and its US partner General Electric and the move will be welcomed by Tony Blair who personally lobbied George Bush over the issue. While re-instatement of the programme is not completely guaranteed it now looks fairly likely.

The Chair of one of the committees had suggested that the Pentagon decision be re-visited because of the contribution of the UK – “our most steadfast partner” – in Iraq.

FINANCIAL TIMES, 5/5/06

Students highlight UK arms loopholes

UK schoolchildren have highlighted loopholes in UK arms controls by importing torture equipment including wall cuff restraints from Poland and a “sting stick” from China. The students set up a basic company in England, and also in Ireland to avoid UK controls on the sale of small arms. The Irish company arranged deals including the sale of Turkish guns to Malawi and South African rifles to Israel. The ease with which UK controls on trade in torture equipment was exposed by a Dispatches TV programme, titled “After School Arms Club”.

GUARDIAN, 30/3/06

UK in line for “son of Star Wars”

According to a senior US general, the UK is a prime candidate to host missiles for the US’s controversial "son of Star Wars" military system. UK officials were apparently startled by the disclosure, made in a presentation to a military conference, and claimed that the decision to base the system in the UK would be “open to scrutiny and debate in the normal way”. Other candidates for the top hotspot are Poland and the Czech Republic.

DAILY TELEGRAPH, 24/3/06

EADS gets in with Youth Parliament

The main partner of this year’s International Session of the European Youth Parliament – an opportunity for learning and discussion about other cultures – was EADS. The EADS group includes the aircraft manufacturer Airbus and the joint venture MBDA, an international leader in missile systems.

EADS PRESS RELEASE, 13/3/06