BAE could face charges over deals
October 1, 2009
By Lindsay Fortado and Sabine Pirone London
PROSECUTORS might file charges against BAE Systems unless the company accepted a plea bargain to resolve allegations it paid bribes in eastern Europe and South Africa, a source familiar with the talks said.
The UK Serious Fraud Office (SFO), which prosecutes white-collar crime, wanted BAE to agree to plead guilty and pay a fine as soon as yesterday, the source said.
If a plea bargain was not reached this week, prosecutors might ask the attorney- general for permission to take the company to court on foreign corruption charges, said the person, who declined to be identified as the negotiations are being held behind closed doors.
The charges relate to aircraft deals in South Africa and the Czech Republic, sales of two frigates in Romania and a radar deal for air traffic control equipment in Tanzania.
The SFO scrapped an investigation into BAE, Europe's biggest weapons maker, in 2006 over bribes allegedly paid to win deals in Saudi Arabia.
Mike Dennehy, a spokesman for BAE, said the company would allow the investigations to "run their course".
"The company is working with regulators towards that end and is providing access to people, information and premises whenever requested," Dennehy said.
David Jones, a spokesman for the SFO, declined to comment. - Bloomberg
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