PM defends ending Saudi arms deal probe
The prime minister has defended the decision to call off the investigation into alleged corruption in a major defence deal between BAE Systems and Saudi Arabia.
Tony Blair said Britain’s relationship with the kingdom was “vitally important” for its efforts to tackle terrorism and to its strategic interests in the wider Middle East, and “that strategic interest comes first”.
The Liberal Democrats have accused the government of giving into Saudi “blackmail” over the probe – the announcement came just ten days after the kingdom said it may move a £10 billion contract for new fighter planes away from Britain to France.
But speaking to reporters in Brussels, Mr Blair said: “If this prosecution had gone forward, all that would have happened is that we would have had months, potentially years of ill-feeling between us and a key partner and ally, and probably to no purpose.
“I’m afraid in the end my role of prime minister is to advise on what is the best national interest, strategic interest, of our country and I’ve absolutely no doubt at all that the right decision was taken in this regard.”
The Serious Fraud Office (SFO) launched its probe into allegations of corruption in three major contracts between BAE and the Saudis – known as the Al Yamamah contracts – two years ago.
It focused on whether millions of pounds of ‘slush funds’ were used to secure defence contracts worth £40 billion over 20 years. BAE has always denied this.
In a statement yesterday, attorney general Lord Goldsmith said the decision to wind up the inquiry was taken on the grounds of “national security” amid concerns the investigation was causing “serious damage” to UK-Saudi relations.
He denied it was based on economic factors, despite coming after the Saudis reportedly said they were in talks to take a contract to buy 72 Eurofighter jets from BAE Systems – signed only three months ago – to France, threatening thousands of British jobs.
The Saudi royal family was said to be furious at the SFO’s probe, which included looking at the role of its members in securing the Eurofighter deal. The defence industry had expressed concern that the investigation threatened many future defence deals.
“I have, as is normal practice in any sensitive case, obtained the views of the prime minister and the foreign and defence secretaries as to the public interest considerations raised by this investigation,” the attorney general told the House of Lords yesterday.
“They have expressed the clear view that continuation of the investigation would cause serious damage to UK/Saudi security, intelligence and diplomatic co-operation, which is likely to have seriously negative consequences for the United Kingdom public interest in terms of both national security and our highest priority foreign policy objectives in the Middle East.”
He added: “Whether contracts are going to be placed is not balanced in the decision.”
The Conservatives accepted the statement, and said the affair should end there, but the Liberal Democrats have accused the government of giving into Saudi pressure.
“This is a scandalous interference with a serious criminal investigation. I met with detectives recently and had every impression that there was substance to the investigation,” said the Lib Dem chief of staff, Norman Lamb MP.
“Coming straight after a threat from the Saudis to withdraw from future business, this completely undermines the UK’s reputation on good governance.”
