Friday, February 05, 2010 

BAE and Saudis finally brought to book.

Away from the country's obsession with what's happening in other people's bedrooms, BAE Systems was today finally forced into admitting what we all already knew: that its deals involving both Tanzania and Saudi Arabia were sweetened by massive bribery and corruption. Not that it was our dogged and determined investigators at the Serious Farce Office that managed to get the company, which may as well be nationalised considering just how closely it works with the government, to own up to operating a massive slush fund which enriched the already filthily wealthy Saudi royal family, but instead the far more tenacious US Department of Justice.

Blair of course forced the SFO into dropping its own investigation to the Al-Yamanah deal, on the grounds of national security, based on spurious but outrageous threats from the Saudis, and also on deeply questionable claims that there was no guarantee of a successful prosecution resulting from the inquiries. The opposite was the case: the SFO had just succeeded in persuading the Swiss to give them access to bank accounts which would have provided prima facie evidence of the payments from BAE to the intermediaries of the Saudi royal family. As the statement from the Department of Justice makes clear:

"BAE agreed to transfer sums totalling more than £10m and more than $9m to a bank account in Switzerland controlled by an intermediary. BAE was aware that there was a high probability that the intermediary would transfer part of these payments to the [Saudi] official."

To call that an understatement would be superfluous. It is though a withering indictment of both of our legal system when it comes to combating corruption and also our willingness to interfere with what ought to be untouchable: the rule of law itself. The Americans, whom we often sneer at, are both more prepared to stand up to threats from bullies and also to prosecute their own than our craven and opportunist equivalents are. New Labour has been responsible for many disgraces, but this really does rank up there, along with Iraq, as one of their very worst abuses of power.

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Thursday, June 07, 2007 

Money, oil and planes. (But don't mention the corruption.)

December the 14th 2006 will rightly go down as one of the most shameful days in Britain's recent political history. Not only was the prime minister of this country questioned by the police, which 10 Downing Street did everything in its power to knock down the news agenda, but it was also the day chosen by the Attorney General to announce to the Lords that he was ordering the dropping of the Serious Fraud Office's investigation into allegations that BAE Systems had been keeping a slush fund through which it paid for Saudi officials' Rolls-Royces, Californian holidays and prostitutes.

That, it seems, may well have been the tip of the iceberg. Both the Guardian and Panorama are now alleging that the SFO investigation had discovered that one of the Saudi princes involved in signing the initial Al-Yamamah deal has since then been paid somewhere in the region of a staggering £1bn by BAe in quarterly payments to Prince Bandar bin Sultan bin Abdul Aziz al-Saud's account at Riggs bank in Washington.

Every single thing that the Saudi royal family stands for and imposes on the country it despotically reigns over ought to be completely inimical to the Labour party. This is a nation which still carries out beheadings in public, discriminates against women in a way highly similar to that which was given as one of the reasons for why removing the Taliban from Afghanistan was justified, and carries out torture as a matter of course against anyone suspected of more or less anything, something which four British men experienced firsthand. Speaking after their failed attempt to hold the House of Saud to account over their treatment, Les Walker commented:

"It's all down to money and oil and planes. Don't upset the Saudis. That's the British government's view."

He couldn't have got it more right. When it comes to the possibility of causing offense to the notoriously easily upset Saudi royal family, that's something that we obviously just can't afford. This isn't you see, about a disgusting autocratic regime profiting from a British company paying huge amounts into the accounts of already stinking rich royals, let alone about interfering with the rule of law in this country, but about hurting the feelings of one of the most despicable governments on the planet. While we routinely rile the Iranian government, making numerous allegations about its closeness to militants in Iraq and Afghanistan which are completely impossible to prove, suggesting that Saudi Arabia, which we know for a fact does all in its power to export the Wahhabist ideology that highly influences the Islamic fundamentalism preached by al-Qaida, is something that we would never ever do.

Hence why Tony Blair, rather than couching his reason for why the SFO investigation was dropped in terms of the damage which the Saudis had threatened to do to the war against terror, an empty threat if there ever was one in the first place, he instead made clear that this was more to down to the fact that probing into the financial dealings of the Saudis was just something you couldn't do:

"This investigation, if it had it gone ahead, would have involved the most serious allegations in investigations being made into the Saudi royal family."

Well, you don't say. That was rather the point, was it not? In actual fact, we ought to treasure this Blair comment, for the simple reason that he's for once telling the whole truth. This wasn't anything to do with the Saudis saying they weren't going to fill us in on all the hot gossip they'd got from torturing the latest extremist it's arrested, which they would have continued providing to the CIA which would have in turn passed it on to us, it was all to do with the SFO getting far, far too close to the truth. The Saudis were in a panic back in December, sparking a hysterical campaign by those with vested issues in keeping the full details of the original dove deal coming out,
fearing that the Swiss were about to give the SFO access to details of bank accounts that would have showed the corruption going all the way to the crown prince himself.

While the SFO did have evidence that the payments from the BAe slush fund had continued past the date when Labour had finally got around to making such corruption illegal in 2002, we didn't until yesterday know that the government itself was in danger of being found complicit, with Lord Goldsmith apparently panicked that all the dirty washing was about to be hung out in public, the Ministry of Defence and the government's arms sale department, the Defence Export Services Organisation, knowing full well what had been going on for nearly 20 years.

The rule of law then, let alone this government's execrable record on tackling corruption, was always going to come second. The only way that the Saudi royals are ever likely to be held accountable, at least until the oil runs out, is by their own people, and it's difficult to disagree with Ken Livingstone when he said he longed for the day when they're swinging from the lamp-posts. This government has instead done everything in its power to stop even the slightest possibility of cracks emerging in the House of Saud's facade of invulnerability.

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Friday, December 15, 2006 

The death of Blair's essential values.

Lord Bell, described by the Guardian as an "arch-propagandist", who led the hysteria for the SFO investigation to be dropped.

December the 14th will go down in history as the day that the prime minister was questioned by police over the loans for peerages scandal, but the real outrage should be over two things: the shameless and overt attempts to overshadow the prime minister's questioning, and the decision to cancel the Serious Farce Office's investigation into corruption involving BAe Systems and Saudi Arabia's despotic monarchy.

The Grauniad reports that the Dear Leader hadn't informed other members of the cabinet that he was to be interviewed by Inspector Knacker yesterday, meaning that Alistair Darling, announcing the plans to close 2,500 post offices, and Douglas Alexander, publishing a report recommending new runways at Stanstead and Heathrow most likely had no inkling of how they were going to be pawns in Blair and 10 Downing Street's spin game. They had known for weeks that Lord Stevens was also going to be holding a press conference stating his findings from the inquiry into the death of Princess Diana. That meant that the tabloids were the following day bound to be heavily distracted in the least, and lo and behold, so it came to pass.

The broads and television news had to be additionally bought off, though. Enter stage left Lord Goldsmith, who decided to pick yesterday afternoon to inform the House of Lords that he was dropping the investigation by the Serious Fraud Office into allegations that BAe Systems was running a slush fund through which notable Saudis were getting such perks such as prostitutes, Rolls-Royces, and holidays in California.

His statement to the Lords is one of the most mendacious of recent times. He said:

"It has been necessary to balance the need to maintain the rule of law against the wider public interest. No weight has been given to commercial interests or to the national economic interest.

The prime minister and the foreign and defence secretaries have expressed the clear view that continuation of the investigation would cause serious damage to UK/Saudi security, intelligence and diplomatic cooperation, which is likely to have seriously negative consequences for the UK public interest in terms of both national security and our highest priority foreign policy objectives in the Middle East."

The only conclusion that can be come to, other than the one that Lord Goldsmith is a fucking liar, is that the Saudis had threatened to withdraw from the intelligence pact which means that all "intelligence" is pooled between the security services. Rather than call their bluff and accuse the Saudis of blackmail, interfering with the right of another sovereign nation to investigate possible corruption, Blair and Goldsmith rolled over. The message seems to be that even if you're a despotic regime that practices torture, bans women from driving cars, and stands for pretty much everything that the Labour party has historically opposed, all you have to do is threaten to stop cooperation and our politicians will drop everything to make it right.

OK, let's face it, the above is a load of bollocks. Goldsmith is a fucking liar. We already know this from when Blair more or less told him, or to give it Lord Hutton's take on why Alastair Campbell sexed up the Iraq weapons dossier, subliminally inferred that he had to change his mind over the fact that it is was possible war would be illegal. The Saudis may have threatened to withdraw cooperation in the wider "war on terror", but it was an empty threat. There's no way that the Saudis would have stopped giving the same material to the CIA, and the CIA would have passed it on to MI5/6 as a matter of course. The reality is that the SFO, for once, was very close to getting to the bottom of the whole corrupt concealed payments and perks packages which have been wetting the Saudis' whistles for decades. They'd either got the Swiss to hand over the details about Swiss bank accounts, or were just about to. Potential charges for current/ex-BAe salesmen/board members/executives might not have been that far off (the SFA apparently had informed Goldsmith they would need another 18 months, but that they were certain a case could be put together), with all the bad publicity and revelations about just how the taxpayer has been paying through subsidies for Saudi princes to bang whores likely to come out in the midst of any trial. This was something that BAe and the Saudis could not allow at any cost.

Hence the hysterical campaign by BAe, taken up nobly by the Daily Mail and the Sun, as described here by Unity, that tens of thousands of jobs were at risk, with the Saudis threatening to go elsewhere. It was all bluster. There had been some negotiations with the French, but they hadn't got anywhere. Local constituency MPs, worried that anger would be directed at them, also took up the cause, as Lyndsay Hoyle continued to do today, showing that he didn't have the faintest clue what he was talking about:

"Quite rightly they were happy with the news," he said, adding that it was a boost to a wide range of companies including Rolls-Royce, which builds engines.

"Tens of thousands of jobs were put at risk by a 1980s issue."

He said that the investigation had been going on for too long and there was no evidence of any wrongdoing. "Jobs would have gone," he added.

On the contrary, documents seized from a warehouse in Hertfordshire and obtained by the Guardian back in 2004 showed that payments from the alleged slush fund had contained past the date when corrupt deals were made illegal in 2002. As for evidence of wrongdoing, there was plenty of circumstantial, and it was the possibility of the SFO getting access to Swiss bank accounts that resulted in BAe and the Saudis realising they were deadly serious.

Whether Goldsmith's announcement was brought forward once Blair and Downing Street realised that the amount of cover they had counted on hadn't done the job, or if it was just a happy coincidence, we probably will never know, although we all know about this government's record.

The lie still had to be decided upon though for cancelling the SFO investigation. Whether doing so on the basis of jobs and "saving" the deal was potentially against international law is uncertain, but was likely to cause further anger among those who wanted to see the SFO finish its probe. Instead, the government hid once again behind "national security" and "counter-terrorism", when its clear that it had absolutely nothing to do with it. This was a political decision taken from up high, with Goldsmith playing the fall-guy and our "strategic interest" providing the fig leaf. That the courts are also less likely to disagree with a decision in the "national interest" was also a factor. The lefties are pissed off, but the majority of the right agrees with the decision, and everything balances out.

The further explanation given today by Blair 'n' Goldsmith is laughable. How could they possibly know that if the investigation had been allowed to continue that it wouldn't have resulted in a successful prosecution anyway? The attorney general could have waited until it was finished, then decided that there wasn't a case to prosecute, as would be within his rights. Instead he's brought further shame on his supposedly independent position by discontinuing it before it was even finished.

In the midst of all this the death of the Labour party becomes apparent. Cozying up to brutal dictatorships, selling them weapons and allowing them to torture our citizens without them then being able to seek recompense is one thing, but interfering blatantly with the rule of law and the right of government agencies to investigate when a crime has believed to have been committed is quite another. It's effectively given the Saudi royal family the right to do whatever they want, as it obviously won't effect them because of the "strategic interest". We've made clear that they and BAe are entirely above the law. Last week the following passage made up a part of Blair's speech on multiculturalism:
But when it comes to our essential values - belief in democracy, the rule of law, tolerance, equal treatment for all

By Blair's essential values, he is no longer British, and no longer is the Labour party. It is now nothing more than a vessel used by those who are doing so for power, and for power's sake only. If yesterday isn't the beginning of the end for this government, then something really has gone wrong.

Related posts:
Chicken Yogurt - The Pariah Sketch
Nether-World - A Shameful Day for Blair and Britain

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