British foreign dept denies Saudi-fraud probe 'interference'
Ministers would not seek to interfere in a fraud investigation into a multibillion-pound arms deal with Saudi Arabia, the UK Department of Foreign Affairs said today.
The comment followed press claims that the Saudis had given Britain 10 days to halt the Serious Fraud Office inquiry or lose a £10bn (€14.7bn) contract for jet fighter planes.
A spokesman for the Foreign Office said that diplomats were committed to ensuring that bilateral trade deals of this kind were delivered smoothly and effectively.
However, he declined to comment on suggestions that the British ambassador in Riyadh had met representatives of the Saudi royal family last weekend to try to calm the row.
Unconfirmed reports have repeatedly suggested that the Saudis are furious over the SFO investigation into allegations of a slush fund for members of the country’s royals.
The investigation into companies linked to BAE Systems relates to allegations of illegal payments linked to the Al-Yamamah arms deal struck by Margaret Thatcher in the 1980s.
The Daily Telegraph today reported that the Saudis’ advisers had made clear through diplomatic channels that they wanted the inquiry halted within 10 days or they would take the kingdom’s arms custom elsewhere.
The paper reported that a contract for Eurofighters that supports 50,000 jobs in the UK was under threat, with the Saudis entering talks with France over a possible order for 36 Rafale jets to take their place.
Neither Downing Street nor the Attorney General’s Office would comment today on reports that Prime Minister Tony Blair was coming under pressure to ask Attorney General Lord Goldsmith to speed the SFO inquiry.
A spokesman for the SFO said only that he could not give any indication of when the investigation is likely to finish.
The Foreign Office spokesman stressed that there was no question of other government departments trying to influence the SFO inquiry.
“The Serious Fraud Office is an independent government department and part of the criminal justice system,” he said.
“Other parts of government cannot and would not interfere in or prejudice its investigations.
“Equally, we are committed to ensuring that existing bilateral trade agreements with other countries, including Saudi Arabia, are implemented effectively and smoothly.”
The Al-Yamamah contract is Britain’s largest ever arms deal and is reported to have earned BAE Systems £40 billion over the past two decades. The Eurofighter deal is an extension of the original contract.
A spokeswoman for BAE Systems declined to comment on the ongoing criminal investigation, but said: “We continue to co-operate with the SFO in their inquiries.”
Negotiations over the Eurofighter were being conducted between the UK and Saudi governments, and the company could not comment on them, she added.
