"Only dull people are brilliant at breakfast" -Oscar Wilde |
"The liberal soul shall be made fat, and he that watereth, shall be watered also himself." -- Proverbs 11:25 |
British investigators were ordered by the attorney-general Lord Goldsmith to conceal from international anti-bribery watchdogs the existence of payments totalling more than £1bn to a Saudi prince, the Guardian can disclose.
The money was paid into bank accounts controlled by Prince Bandar for his role in setting up BAE Systems with Britain's biggest ever arms deal. Details of the transfers to accounts in the US were discovered by officers from the Serious Fraud Office during its long-running investigation into BAE. But its inquiry was halted suddenly last December.
[snip]
Sources close to the US justice department, whose members help to police the international anti-corruption treaty to which Britain is a signatory, confirmed that UK officials had not disclosed to the group that huge payments had gone to the prince in connection with the al-Yamamah arms deal.
In those confidential briefings at the OECD headquarters in Paris earlier this year, the UK said "national security" reasons were behind the decision to halt the SFO investigation into the case.
They claimed the SFO probe focused largely on old allegations of a slush fund operated by the BAE to provide treats for junior Saudi officials. Last night, a spokesman for Lord Goldsmith said full evidence had not been given to international panel members of the OECD anti-bribery working party at their meetings in order to protect "national security". He said: "The risk of causing such damage to national security had a bearing on the information voluntarily provided to the OECD".
He added: "We have not revealed information which could itself jeopardise our national security. For these purposes the OECD was effectively a public forum, as is illustrated by the fact that you claim to know what [the government] told them."
The Guardian's disclosure of British government complicity in the alleged payment of £1bn to Prince Bandar caused international concern yesterday, with Tony Blair taking a bullish position when questioned at the G8.
Standing beside George Bush, a close family friend of former US ambassador Prince Bandar, Mr Blair said it would have "wrecked" the relationship with Saudi Arabia if he had allowed investigations to go on. "This investigation, if it had gone ahead, would have involved the most serious allegations and investigation being made of the Saudi royal family," he said.
"My job is to give advice as to whether that is a sensible thing in circumstances where I don't believe the investigation would have led to anywhere except to the complete wreckage of a vital interest to our country."
Labels: corruption