Court condemns Blair for halting Saudi arms inquiry
By Ben Russell and Nigel Morris
Friday, 11 April 2008
Tony Blair's government broke the law when it abandoned a fraud investigation into a multibillion-pound arms deal between BAE Systems and Saudi Arabia, the High Court ruled yesterday.
Two senior judges condemned the Government's "abject" surrender to a "blatant" threat when the Serious Fraud Office (SFO) halted its inquiry into allegations that BAE had made secret payments to Saudi officials in order to secure a series of massive contracts. BAE has always denied any wrongdoing.
Calling on Gordon Brown to hold a public inquiry into the affair, jubilant campaigners demanded the fraud investigation into the £50bn Al-Yamamah deal to sell Tornado and Hawk jets to the Saudis be restarted.
*
The no-holds-barred judgment sparked joy last night among the arms trade campaigners who had taken the case to the High Court.
Demanding that the SFO restart its investigation, Symon Hill, of the Campaign Against the Arms Trade which brought the action with the pressure group Corner House, said: "We hope the SFO will reopen the inquiry and we call on Gordon Brown and his government not to stand in the way."
He added: "We are delighted. This judgment brings Britain a step closer to the day when BAE is no longer calling the shots. It has been clear from the start that the dropping of the investigation was about neither national security nor jobs. It was due to the influence of BAE and Saudi princes over the UK Government."
The judgment could require the SFO to reconsider its decision to call off the inquiry although the department is thought likely to appeal. An SFO spokeswoman said: "The SFO are carefully considering the implications of the judgment and the way forward. No further comment at this stage." Downing Street also declined to comment.
Nick Clegg, the Liberal Democrat leader, demanded a full inquiry into the decision to abandon the SFO investigation and warned that the Government's decision had done "untold damage" to Britain's standing.
He said: "This investigation was blocked supposedly to protect our security, but it looks increasingly like it was done to protect BAE sales by appeasing the Saudi government.
*
Leading article: A damning indictment of business and government
Friday, 11 April 2008
At last, some sound and principled sense has been spoken on the matter of the Serious Fraud Office, BAE Systems and the Saudi arms deal. Fortunately, this sound sense comes from the High Court, in its judgment on the SFO's decision to drop its corruption inquiry into the multi-billion pound contract. Unfortunately, it took the indignation of two campaign groups to bring the case at all. The ruling thoroughly vindicates them. It should also shame not only the SFO, but the Government of the day.
The judgment is as disturbing as it is excoriating. The court found that the Saudis - as was widely mooted at the time - had threatened to end diplomatic co-operation with Britain and call off a future contract for BAE to supply Eurofighter aircraft, if the SFO pursued its investigation. BAE, in arguments accepted by the then Attorney General, Lord Goldsmith, had said that the inquiry would have seriously damaged UK-Saudi relations and so jeopardised national security.
The High Court replied with a lengthy written judgment which essentially dismisses this argument as rubbish. It said there was no proof at all that British national security would have been put at risk by anything the Saudis threatened to do. The purpose of the threat was simply designed "to prevent the SFO from pursuing the course of investigation he had chosen to adopt". In that, the judgment went on tersely, "it achieved its purpose".
It went on, in words that should be inscribed over the entrance to No 10 Downing Street: "No one, whether within this country or outside, is entitled to interfere with the course of our justice."
More