BAE briefs
The UK, the Czech Republic, Sweden and Austria are coordinating their corruption investigations into BAE Systems. A meeting of prosecutors from the four countries took place this May under the aegis of an EU body titled Eurojust, which was set up in 2003 to fight organised crime.
The Guardian has claimed that the UK tried to oust the Chair of the anti-corruption watchdog of the Organisation for Economic Cooperation and Development (OECD) in order to prevent criticisms of ministers and BAE Systems. In March, UK officials tried to stop the Chair, Swedish legal expert Professor Pieth, from addressing a press conference at which Pieth announced his agency was to conduct a formal inquiry into the UK government’s decision to terminate the BAE investigation.
The director general of the OECD believes there is a smear campaign against him as well, citing attacks by the UK media.
BAE is hoping to secure lucrative deals with Japan and India for combat jets as both countries prepare to launch calls this October for tenders to replace their current fleets. BAE is leading efforts by Eurofighter partners to sell the Typhoon, and is up against American F16s and F18s and Russia’s MiG-29.
BAE Systems is in discussions with Indian partners to produce armoured vehicles for the Indian army. The plans are part of the company’s push to win some of the £100bn that the Indian government expects to spend on military hardware in the next five years.
BAE Systems has been reaching out to young people through its Schools Roadshow, which includes theatre presentations and a competition for school pupils to design an unmanned vehicle – see www.baesystems.com/education for more.
Meanwhile the Cumbrian town of Barrow-in-Furness, whose economy is dominated by the local BAE Systems shipyard, is to see three schools closed and pupils left with little choice other than a new school owned and managed by the arms company.
The government has admitted that the BAE Systems chief lobbyist was given an official security pass allowing free access around the Ministry of Defence (MoD). The MoD admitted that “a variety of passes” were issued to BAE executives, but said it would cost too much of taxpayers’ money to list them.
The chief lobbyist, Julian Scopes, is a former high-ranking civil servant at the MoD. He has been named as one of two key lobbyists in BAE’s campaign to sell aircraft to the Czech Republic.
Alan Garwood, head of the DESO, the UK’s Defence Export Services Organisation, is expected to return to BAE Systems as marketing director when he steps down this summer. Although BAE Systems is not expecting any of its employees to follow Garwood, possible candidates for the role include the chief operating officer of MBDA, which is a joint BAE venture, and the chief executive of Cobham, who is a former group managing director of Avionics at BAE Systems.
A possible US arms deal with Saudi Arabia and other Gulf allies has been delayed because of objections from Israel. Israelis are concerned that the deal may give military advantage to its regional rivals. The US has long been committed to preserving Israel’s “qualitative military edge” and the two countries are in discussion over increasing US support for Israel’s military from $2.4bn to $3bn.
The US Congress has been notified of plans to sell ammunition and military equipment valued at up to $508m to Iraq.
The Pentagon’s Defense Security Cooperation Agency said that the sale “serves the interest of the Iraqi people... as well as offering hope for a more stable and peaceful Middle East.”
Amnesty International has accused China and Russia of breaching international law in supplying Sudan with weapons that were used in Darfur. A 2005 resolution by the UN Security Council (of which China and Russia are Permanent Members) banned the supply of weapons to the area.
The Sudanese, Chinese and Russians all deny the allegations.
India has agreed to lease two Russian nuclear-powered attack submarines, making it the sixth country to operate nuclear submarines.
India is trying to maintain a maritime balance as China is funding the construction of a naval base in Pakistan.
A proposed plan to use cluster bombs has split the Finnish coalition government, with the country’s president in support but the Finance Minister stating he would not support a budget to buy the weapons. The Finnish Defence Force (FDF) is examining alternatives as it plans to stop using anti-personnel mines. The FDF Chief said that to commit to a ban on purchasing or using cluster bombs “would be to lose a significant part of the defence forces’ firepower”.
Dutch pension fund ABP has divested its stakes in companies that produce land mines. ABP said it is considering selling shares in other military companies, such as Boeing and Lockheed Martin, and divesting stakes in companies that produce cluster bombs.
F14 fighter jets were made famous by the film Top Gun. The seized planes had been sold by a naval base in 2005 as scrap metal.
A parliamentary answer from Foreign Office minister Kim Howells has revealed that the UK spent approximately £165m on private security companies in Iraq in the past four years – equivalent to about a quarter of the entire Iraq aid budget.
One UK security company, ArmorGroup, has become the biggest UK company in Afghanistan after signing a £96m contract to guard the US embassy in Kabul.
US law enforcers have begun a formal investigation into corruption allegations at Siemens. The company is accused of using “slush funds” to obtain foreign contracts and is also accused of funding one trade union to act as a counterweight to another trade union. Prosecutors in five European countries are looking into the same claims.
Oil revenues from Chad are being spent on weapons despite twenty per cent of the country’s children dying before the age of five. The World Bank funded a pipeline to export Chad’s oil and, in return, the country agreed to spend 86.5 per cent of oil revenue on health, education, rural development and a ‘future generations fund’. This deal was replaced last July by an accord that allows more spending on the army.
ITT Corp. in the US has been fined $100m for illegally exporting US military technology to foreign buyers in the form of night-vision technology to China.
The US has eased its military embargo on Vietnam in the wake of a 2005 agreement that opened the door to co-operation on military training. Trade is now allowed on a case-by-case basis.
Shorts in brief
Turkey’s choice
Turkey has selected AgustaWestland to provide helicopters, rather than South African company Denel.
French talks with Morocco
France is in advanced talks on the sale of Rafale aircraft to the Moroccan Air Force in a deal that would give the plane’s manufacturer its first export order for the aircraft.
Small arms
An investigation in South Africa found that military procurement agency Armscor has been selling small arms ammunition on the open market, contrary to government policy.
Austria hesitates on Typhoons
Austria has indicated it may cancel its order for Eurofighter Typhoons following allegations of irregularities in the procurement process.
MBDA-Kuwait deal
MBDA has been awarded a $86m contract to upgrade missile systems for the Kuwait Air Force.
Trinidad and Tobago
Trinidad and Tobago is buying three patrol vessels from VT Group for special operations and maritime law enforcement.
Give us feedback on this page