ECGD bribery scandal receives extensive news coverage

See also recent press coverage as of 3 February 2007

• Lawyers acting on behalf of CAAT and Corner House submitted a Letter Before Action pursuant to the Judicial Review Pre-Action Protocol, on the 19th December 2006, requesting a response as well as copies of key documents by Tuesday 2 January.
• The main basis of the legal challenge is that the UK is in breach of Article 5 of the OECD Anti-bribery Convention, which states that the investigation and prosecution of foreign bribery "…shall not be influenced by considerations of national economic interest" or "the potential effect upon relations with another State…".

• The Government requested a later deadline and responded on 19 January 2007.

• CAAT issued a Press Release stating that "there is nothing in that letter which has dissuaded CAAT and Corner House from their view that the decision was unlawful" and also reporting that confidential and legally privileged material belonging to CAAT has been received by BAE Systems Plc. CAAT has made an application to the High Court which has directed that CAAT and BAE appear before it at a hearing on Friday, 2nd February 2007. CAAT is seeking an injunction for BAE to assist in identifying the source of the leak.)

• The OECD Working Group on Bribery met on the 16th and 17th of January 2007, and asked the UK to give a statement on the termination of the investigation into BAE. After the meeting the OECD issued a Press Statement stating that the Group had "serious concerns as to whether the decision was consistent with the OECD Anti-Bribery Convention and will further discuss the issue in March 2007, in the context of the United Kingdom written report on its implementation of recommendations set out in the 2005 Phase 2 examination report on its enforcement and application in practice of the OECD Convention. The Working Group will then consider appropriate action."

BAE faces action on anti-arms group's papers
By Michael Peel,Legal Correspondent
Published: January 26 2007 02:00
http://www.ft.com/cms/s/8f463d08-ace2-11db-9318-0000779e2340.html

Govt responds to Blackstone's BAE threat
TheLawyer.com, 23 January 2007
http://www.thelawyer.com/cgi-bin/item.cgi?id=123917&d=122&h=24&f=46

STEFAN ROUSSEAU/AP, Christian Science Monitor, 22 January 2007
Pressure builds on Blair over weapons probe
http://www.csmonitor.com/2007/0122/p07s02-woeu.html

Britain rebuked for dropping bribe inquiry
By Nigel Morris, Home Affairs Correspondent
Published: 19 January 2007
http://news.independent.co.uk/uk/politics/article2165459.ece

A study in Scarlett, David Leigh
January 19, 2007 05:00 PM
The government's chagrin at the MI6 chief's refusal to bale it out of difficulty for quashing an arms deal enquiry is a taste of things to come.
http://commentisfree.guardian.co.uk/david_leigh/2007/01/a_study_in_scarlett.html

OECD 'concerns' over Saudi probe
BBC NEWS: 18 January 2007
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/politics/6275199.stm

The Times January 18, 2007
Blair faces new OECD pressure on halted BAE inquiry
Gary Duncan, Economics Editor
http://www.timesonline.co.uk/article/0,,200-2553104,00.html

OECD - Paris, 18 January 2006
OECD Secretary-General stresses governments' role in anti-corruption drive
http://www.oecd.org/document/43/0,2340,en_2649_201185_37948971_1_1_1_1,00.html

Protecting ties with Saudis trumped BAE bribery probe, Blair says
Associated Press, 17 January 2007
http://www.freerepublic.com/focus/f-news/1769956/posts

Excerpt from the opening Remarks by Angel Gurría, OECD Secretary-General
Working Group on Bribery in International Business Transactions
Paris, Tuesday 16 January 2007
http://www.oecd.org/document/25/0,2340,en_2649_34855_37942873_1_1_1_1,00.html

Fourth I know that at each meeting, this Group is conducting very interesting reviews of current anti-bribery allegations, and anti-bribery cases. I understand that this part of the session is getting longer each time. More cases are being uncovered, and they are being researched and being investigated. On your session on cases, I understand you will take a particular look at issues that have arisen with respect to a case concerning the U.K., which is a source of concern regarding the application of the Convention provisions. It is also a case that has received considerable press attention. I have asked the Chair, and I have asked the Secretariat, to keep me informed about your procedures concerning this particular case.

Transparency International, 8 January 2007
www.transparency.org/content/download/13698/140848
Letter to the Honorable Angel Gurria
Secretary-General of the OECD

Blackstone attacks govt on BAE Saudi decision 19 December 2006
http://www.thelawyer.com/cgi-bin/item.cgi?id=123555&d=122&h=24&f=46
Blackstone Chambers is to launch the first legal action against the Serious Fraud Office (SFO), Attorney General and prime minister Tony Blair over the decision to drop an investigation into BAE Systems’ involvement with a Saudi Arabian defence contract.

BAE ordered to name payment agents March 17, 2006
http://politics.guardian.co.uk/foreignaffairs/story/0,,1733025,00.html