BAE confirms executives were detained in U.S.
LONDON, England (AP) — BAE Systems confirmed Monday that chief executive Mike Turner and non-executive director Nigel Rudd were briefly detained by U.S. officials when they landed in the United States on business last week.
BAE signed USD 39.1 000 000 000 deal for 72 Typhoon Eurofighters with Saudi Arabia in September.
The pair were spoken to when they arrived at Houston airport, before they were allowed to enter the United States. Turner has since returned to Britain while Rudd is on vacation at an undisclosed location, the company said.
The U.S. Department of Justice is investigating allegations of corruption in a multibillion pound arms deal between BAE, a leading global defense and aerospace company, and Saudi Arabia.
BAE, that has denied any wrongdoing, said that the Department of Justice had “served a number of additional subpoenas in the U.S. on employees of BAE Systems PLC and BAE Systems Inc. as part of its ongoing investigation.”
“The company has been and continues to be in discussion with the DoJ concerning the subpoenas served in the course of its investigation,” it added.
Britain’s Serious Fraud Office dropped its own investigation in mid-2006 into allegations that BAE had a multimillion pound “slush fund” offering sweeteners to officials from Saudi Arabia in return for lucrative contracts.
The High Court last days ruled that the SFO acted illegally when it abandoned the inquiry, but has allowed the fraud office to make an appeal to the House of Lords to decide whether the judiciary has the right to intervene and force the government to reopen the sensitive inquiry.
During the legal challenge, the High Court was told that the investigation was halted after a threat from Saudi Prince Bandar bin Sultan to cancel a multibillion pound Typhoon Eurofighter contract.
A £20 000 000 000 (USD 39.1 000 000 000) deal for 72 Typhoons was signed in September between Saudi Arabia and London-based BAE.
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