Tanzanian tycoons divulge secret ECA supported arms deal payout

(IPP Media, London, 16 January 2007) TwoTanzanian business moguls have admitted they were secretly paid $12m, or 30% of the contract, by BAE, the UK`s biggest arms supplier, in a controversial deal in which Tanzania bought an obsolete military radar system. The UK Export Credits Guarantee Department has guidelines under which a ``commission`` of more than 5-10% is automatically regarded as questionable and it is not clear why suspicions of bribery were not raised. The OECD Export Credit Working Group has recently converted its Action Statement on Bribery to an OECD Recommendation, raising expectations that its peer review process will seek explanations from the ECGD on why deterent action was not taken.