BAE boss and colleague detained over corruption claims in swoop at U.S. airport

Mike Turner, chief executive of Britain's biggest defence firm, and his unidentified colleague were held after arriving on business.

They were confronted at Houston airport and questioned by officials investigating the £43billion Al-Yamamah arms deal between BAE and Saudi Arabia.

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Arms deal: A BAE Tornado of the Royal Saudi Air Force

Their laptops, BlackBerries, other personal electronic equipment and documents were examined in what was described as a "pretty heavy-handed" operation before the pair were released.

British officials in Washington were reportedly informed of the incident, which happened last Monday, when Mr Turner alerted military contacts at the embassy.

"It was pretty heavy-handed," one told the Sunday Telegraph. "They had their laptops taken away and their documents photocopied."

Mr Turner, a 59-year-old father of four, is understood to have since returned to Britain.

Washington began its corruption probe last year after it was alleged that BAE had made illegal payments to key officials from the Saudi regime, including £1billion to Prince Bandar.

The company has repeatedly denied doing anything wrong and Prince Bandar has categorically denied receiving any bribes.

The British Government has been desperate to close down controversy over the affair.

There was outrage in December 2006 after the Serious Fraud Office was ordered to drop its inquiry into the Al-Yamamah contract on the grounds of national security.

The then-Attorney General, Lord Goldsmith, and Tony Blair insisted that continuing would have caused "serious damage" to UK-Saudi relations and put national security at risk.

However, the High Court has since ruled that the SFO acted unlawfully in abandoning the case, while the U.S. authorities have pressed ahead. Their investigation could lead to a criminal inquiry under America's Foreign Corrupt Practices Act.

It is understood that several U.S.-based BAE executives had their homes raided at around the same time Mr Turner and his colleague were detained.

Subpoenas were also served on several BAE executives based in the U.S. last week. Vince Cable, the Liberal Democrat Treasury spokesman, said: 'These reports illustrate that the investigation into alleged corruption over this arms deal is very far from closed.

'I approached the Home Secretary several months ago to ask whether the British Government would co- operate with the Department of Justice, and I received an unhelpful and ambiguous answer.

'It is very clear that the U.S. authorities will not let this go.

'If there is any question of illegality on American soil they will investigate fully, and they are putting the British Government to shame.'

BAE said any request for information relating to the investigation should be directed to the U.S. Department of Justice.

l.ballinger@dailymail.co.uk