Campaigners seek injunction against BAE settlement

Lawyers acting for Campaign Against Arms Trade (CAAT) and The Corner House today lodged papers at the High Court asking for an injunction to delay the Serious Fraud Office (SFO) from seeking court approval for its controversial plea bargain settlement with BAE Systems plending the outcome of a Judicial Review. They lodged papers requesting a Judicial Review at the same time

OneWorld.net | 28 February 2010

The campaigners contend that the proposed settlement is unlawful because the SFO did not follow the correct prosecution guidance (including its own guidance) on plea bargains.

They argue that the agreement does not reflect the seriousness and extent of BAE's alleged corruption and does not provide the court with adequate sentencing powers.

The groups also hold that the SFO unlawfully concluded that the factors weighing against prosecuting BAE on bribery and corruption charges outweighed those in favour of prosecution.

Under the SFO’s proposed settlement, BAE would plead guilty in court to “accounting irregularities” in its 1999 sale of a radar system to Tanzania and would pay penalties of £30 million. The SFO would not bring prosecutions relating to alleged bribery and corruption in BAE’s arms deals elsewhere, including in the Czech Republic, South Africa and Romania.

Kaye Stearman, CAAT's spokesperson, says: “The plea bargain in no way reflects the very serious allegations of bribery and corruption against BAE, limited as it is to minor book-keeping offences in one country.”

Nicholas Hildyard for The Corner House says: “We’ve had no option but to seek an injunction. The Serious Fraud Office should not seek legal approval of its proposed settlement with BAE before the courts have had an opportunity to assess whether the decision to make that settlement was lawful in the first place. We believe it was not lawful."

Lawyers acting for the two groups have also requested a judicial review of the SFO’s decision to discontinue its prosecution of Count Alfons Mensdorff-Pouilly.

ENDS

1.  Campaign Against Arms Trade (CAAT) works for the reduction and ultimate abolition of the international arms trade. The Corner House aims to support democratic and community movements for environmental and social justice through analysis, research and advocacy.

2.  For a summary of investigations into BAE see: www.caat.org.uk/issues/bae/bae_investigations.php

3.  The Serious Fraud Office is a UK government department that investigates and prosecutes complex fraud. http://www.sfo.gov.uk/

4.  BAE Systems is the world's fourth largest arms producer. It makes fighter aircraft, warships, tanks, armoured vehicles, artillery systems, missiles and munitions. Its foremost markets are Saudi Arabia and the United States. It has consistently denied any wrong-doing.

5.  A judicial review is a court proceeding in which a judge reviews the lawfulness of a decision or action made by a public body. Now that CAAT and The Corner House have lodged papers at the High Court requesting a judicial review, the Serious Fraud Office Director will submit his legal arguments and a witness statement arguing why the decision to offer a plea bargain settlement with BAE was lawful. A judge will then consider the papers from both sides and decide whether to grant or refuse permission for a full judicial review hearing.

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