BAE Systems agreed to pay a $400 million fine to settle a U.S. Department of Justice (DOJ) investigation into commission payments made to secure arms contracts. BAE also made an out-of-court settlement with the UK Serious Fraud Office (SFO), which has been investigating the company since 2004.
Serious Fraud Office
After years of investigation, Britain’s Serious Fraud Office (SFO) said it would seek to prosecute BAE Systems “for offenses related to overseas corruption.” The alleged offenses have been widely reported to involve the sales of Gripen fighter aircraft to South Africa and their lease to the Czech Republic (BAE is a partner with Saab in the Gripen International company); a ground radar system to Tanzania; and two former Royal Navy frigates to R
As the Paris Air Show opens, UK-based BAE Systems, amidst ongoing allegations of corruption regarding its dealings with Saudi Arabia, has taken steps to open itself to investigation by an independent committee while in the U.S. Congressional committees recently lifted blocks on some arms transfer requests by BAE North America.