CAAT - Campaigners disappointed by judicial review refusal of SFO-BAE settlement

The Honourable Mr Justice Collins today announced his decision to refuse to grant permission to Campaign Against Arms Trade (CAAT) and The Corner House to bring a full judicial review hearing against the decision by the UK Serious Fraud Office (SFO) to make a controversial plea bargain settlement with BAE Systems. The two groups are taking legal advice on whether or not to appeal the decision.

Kaye Stearman, spokesperson for CAAT, says:

We are obviously disappointed by the Judge’s decision to refuse permission. It implies that the law allows a giant company to pay a small financial penalty for accounting irregularities rather than be charged and tried in open court on more serious criminal charges. The law should apply to all without fear, favour or prejudice.

Nicholas Hildyard for The Corner House says:

We are appealing this decision. Corruption is a serious and harmful crime and should be treated as such. Prosecutors’ guidelines have been drawn up to ensure that it is. The public needs to have confidence that justice can be served by the new plea bargaining system in which corporates negotiate their crime and punishment.

The campaigners had argued that the proposed settlement is unlawful because:

the SFO had not followed the correct prosecution guidance (including its own guidance) on plea bargains

the agreement does not reflect the seriousness and extent of BAE’s alleged corruption

the agreement does not provide the court with adequate sentencing powers

the public interest factors weighing against prosecuting BAE on bribery and corruption charges outweigh those in favour of prosecution.

Under the SFO’s proposed settlement, BAE would plead guilty in court to accounting irregularities in its 1999 sale of a radar system to Tanzania and would pay penalties of £30 million. The SFO would not bring prosecutions relating to alleged bribery and corruption in BAE’s arms deals elsewhere, including in the Czech Republic, South Africa and Romania and would close all its BAE investigations.

The judge also refused to grant permission to bring a full judicial review hearing against the SFO’s decision to discontinue its prosecution of Count Alfons Mensdorff-Pouilly with conspiracy to corrupt in connection with BAE’s deals with eastern and central European governments.

Honourable Mr Justice Collins did, however, extend the injunction in force against the SFO from seeking court approval of its BAE settlement for a further eight days and continuing if the groups lodge an appeal.

For further information or an interview please contact:
Kaye Stearman of CAAT, on 020 7281 0297 or 07990 673232 or Nicholas Hildyard of The Corner House on 01258 473795 or 07773 750 534.

Notes

Campaign Against Arms Trade (CAAT) works for the reduction and ultimate abolition of the international arms trade together with progressive demilitarisation within arms producing countries. The Corner House aims to support democratic and community movements for environmental and social justice through analysis, research and advocacy.
For background about the judicial review to date see BAE Systems Judicial Review.
The Serious Fraud Office is a UK government department that investigates and prosecutes complex fraud.
BAE Systems is one of the world’s largest arms producers. It makes fighter aircraft, warships, tanks, armoured vehicles, artillery systems, missiles and munitions. Its foremost markets are Saudi Arabia and the United States. It has consistently denied any wrong-doing.

ENDS