BAE¶s long standing corruption scandals and The BritishGovernment.
BAE was recently named the largest arms manufacturer in the world. This placewas usually taken up by American companies in the past. BAE Systems employs over 107,000 people worldwide and has its presence in more than 100 countries. Thecompany specializes in manufacturing arms for the air, naval & land forces. They alsoprovide technical support in the fields of advanced electronics and security informationtechnology.
Despite the recession, the company managed to rake in £ 22.4 billion for the year 2009. The BAE credits its operational framework and effective businessmanagement systems for its performance. BAE¶s major µhome market¶ consists of countries like Australia, India, Saudi Arabia, South Africa, Sweden, United Kingdom &the United States of America. They also have global business development offices inmost of these countries with the addition of countries like Korea, Bahrain, Singapore,Poland, Turkey etc. BAE- Texas was awarded a $ 629 million contract by the US armyto develop mine resistant vehicles. The BAE Systems has been dubbed as a ³TaxHaven´ by critics in the past. £498 million was paid as tax to the British Government inthe year 2006 alone. (http://www.oef.com)
The amount of money that exchanges hands via the BAE Systems is definitelynoteworthy. It is because of this that the company has been embroiled in variousallegations on bribery and corruption in the past. The involvement & the silence of theBritish Government are questionable, since the actions taken against the BAE systemshave hardly encouraged fair practices. The Serious Fraud Office (SFO) had beeninvestigating corrupt business practices in countries like Chile, Romania, Saudi Arabia,South Africa, and Tanzania and most recently in the USA. (http://www.guardian.co.uk)
audi Arabia (1985-2008)
The BAE was involved in the Al Yamamah arms deals in Saudi Arabia since1985. The deal involved selling Tornado & Hawk jets to Saudi Arabia. It also included acommitment to training and maintenance contracts. The BAE is known to have earned£43 billion in 20 years through these transactions. The UK Government was paid for byup to 600,000 barrels of crude oil per day. (http://news.bbc.co.uk)The BAE systems have been under investigation on this deal sighting corruptionand bribery charges in order to secure contracts. They have been accused of maintaining µSlush funds¶ of £ 60 million for entertaining Saudi Royals by the SFO. TheUK National Audit Office (NAO) was also involved in the investigation. Interestingly, thereports were never published, making it the only NAO report to be withheld. The