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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 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
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
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
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
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
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
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
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
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
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
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
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
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