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Thursday, 28th August 2008

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BAE boss held in fraud probe



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The boss of one of Lancashire's biggest employers has been held by fraud investigators after flying into an airport in the United States.
BAE Systems chief executive Mike Turner was issued with a court order in relation to the multi-million pound corruption probe and had his Blackberry and laptop seized as he touched down at George Bush International Airport in Houston, Texas.

Company non-executive director Sir Nigel Rudd, who is also British airports operator BAA and Barclays Bank deputy chairman, was also detained by officials from the US Department of Justice (DoJ) when he touched down at a separate airport.

Investigators are looking into allegations that during the 1980s BAE paid bribes to win the £20 billion Al-Yamamah arms deals to Saudi Arabia for fighter jets, including jets built at its bases in Warton and Samlesbury, near Preston, where it employs more than 11,000 people.

A BAE spokesman confirmed on Monday that the subpoenas had been issued and continued to deny any wrongdoing.

He said: "The company confirms that last week the DoJ served a number of additional subpoenas in the US on employees of BAE Systems Plc and BAE Systems Inc as part of its ongoing investigation, which the company has previously announced.

"The company has been and continues to be in discussion with the DoJ concerning the subpoenas served in the course of its investigation."

The company declined to say whether the subpoena was ordering Mr Turner, who is due to leave the company this summer, to give evidence to the DoJ in person or provide investigators with information.

However, an official from the Foreign Office has said Mr Turner was questioned for around 40 minutes last Tuesday (May 13) before being allowed to continue with a visit to BAE's armoured vehicle factory in Texas.

The chief executive has since returned to the UK.

It is understood that Sir Nigel was questioned for half-an-hour and issued with a subpoena last week when he arrived at Newark Airport en route to a holiday in Florida.

The US investigation has placed strain on trans-Atlantic relations, which make up almost half of BAE's work, and follows a decision by the UK Serious Fraud Office to drop its own probe into Al-Yamamah in 2006.

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  • Last Updated: 19 May 2008 8:44 AM
  • Source: n/a
  • Location: Preston
 
 
  

 
 


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