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Goldsmith denies ordering cover-up to stop probe into £1bn arms payment
Last updated at 23:37pm on 08.06.07
Lord Goldsmith denies claims of a cover-up
Lord Goldsmith has angrily denied claims that he ordered a cover-up to prevent fraud investigators discovering £1billion in secret payments allegedly made to a Saudi prince involved in an arms deal.
The Attorney General broke his silence over the affair following claims that he had ordered the Serious Fraud Office to conceal details of its own suspended investigation from international bribery watchdogs.
The row over allegations of corruption at the heart of Britain's biggest ever arms contract, to supply warplanes and other military hardware to Saudi Arabia, comes as Britain is on the brink of signing another deal with the Saudis.
It is expected to be worth £10billion and will secure tens of thousands of jobs.
Ministers fear the contract could be put in jeopardy by the latest claims. Tony Blair has sought to reassure Riyadh that there is no prospect of a fresh inquiry into the original contract between BAE and Saudi Arabia, which was struck by Margaret Thatcher's government in 1985.
The Prime Minister has faced growing pressure since the Serious Fraud Office was ordered to drop its inquiry into the Al-Yamamah contract last year on the grounds of national security.
Prince Bandar bin Sultan, former Saudi ambassador to the U.S., allegedly received payments from BAE Systems for setting up the £40billion deal with the full knowledge of the Ministry of Defence. He has "categorically denied" doing anything improper.
The Guardian newspaper claimed yesterday that when the Organisation for Economic-Co-operation and Development, the world's anti-corruption watchdog, tried to look into the deal earlier this year, the details were not disclosed by British officials on the orders of the Attorney General.
But Lord Goldsmith said: "It is absolutely untrue that I ordered investigators to conceal payments from the OECD. It is categorically denied."
He refused, however, to discuss allegations about the payments, saying that the Ministry of Defence "regards the UK as bound by confidentiality provisions".
Robert Wardle, director of the Serious Fraud Office, "confirmed" that Lord Goldsmith had not ordered the SFO to conceal details of its investigation from the OECD. The SFO said: "The decision as to what information should be given to the OECD about the investigation was made by the SFO."
Reader views (1)
If your customer is bribable and you don't offer him a bribe you won't get the business. The bribe you offer will be added into your price so the one being bribed really pays himself. This is just a storm blown up by people who don't live in the real world.
- Frank, Wolverhampton, England
