UK Law Lords rule termination of BAE/Saudi investigation was legal

(The Corner House, Dorset, 30 July 2008) The law lords have ruled that the Director of the Serious Fraud Office acted legally in terminating the SFO's investigation into alleged corruption by BAE Systems in its dealings in Saudi Arabia. The SFO's decision followed lobbying by BAE and threats from Saudi officials to cut off intelligence links with the UK if the investigation proceeded. Nicholas Hildyard of The Corner House said: "Now we know where we are. Under UK law, a supposedly independent prosecutor can do nothing to resist a threat made by someone abroad if the UK government claims that the threat endangers national security." Symon Hill of CAAT said: "BAE and the government will be quickly disappointed if they think that this ruling will bring an end to public criticism. Throughout this case we have been overwhelmed with support from people in all walks of life." [ECA Watch: A negative reaction can be expected from OECD officials and members monitoring the Anti-Bribery Convention as this could seriously undermine international corruption sanctions. Transparency International notes that the decision to stop the criminal investigation raised acute concerns over the United Kingdom's international obligation to combat corruption.]