Ruge Opinion
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- Mar 22, 2006
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March 7, 2012 12:13 pm
BAE yet to pay £29.5m false accounting fine
By Caroline Binham, Legal Correspondent
BAE Systems is yet to pay the £29.5m that it owes Tanzania as part of a fine for false accounting, with questions to be formally answered in parliament as soon as Wednesday over why there has been such a prolonged delay in making the payment.
The UK aerospace and defence group admitted one count of false accounting in a London court in 2010, settling a six-year investigation that originally spanned four continents.
The charge to which it eventually pleaded guilty related to a radar system in Tanzania, for which the court fined the company £30m, with the bulk due to go to the people of the African nation.
Tanzania is yet to see any of the money that was meant to be distributed through charitable ventures. The parliamentary International Development Committee berated the company last July for not having made the ex-gratia payment, exacting an undertaking from the director of the Serious Fraud Office that he would pursue BAE for contempt of court if the money was not paid by the autumn of 2011. That deadline passed with no action.
At the beginning of February, BAE, the SFO and the Department for International Development said they would sign a memorandum of understanding, at which point BAE would have two weeks to pay the money, plus interest, to Tanzania. The memorandum of understanding is still to be signed.
Those with knowledge of negotiations said the delay was due to finalising exactly how the money would be spent in Tanzania.
"This process takes time to ensure that the systems are watertight and monitoring, reporting and auditing procedures are in place," a Department For International Development spokesman said. "We are nearly there and the memorandum of understanding is close to being finalised and will soon be sent to BAE and the Serious Fraud Office for their final agreement."
Hugh Bayley, a Labour party member of parliament, is expected to receive an answer on Wednesday to a parliamentary question he tabled on why the money had not yet been paid.
BAE said in a statement: "We are actively working with DfID to ensure the payment is made in accordance with their procedures, including their requirement for a memorandum of understanding to cover the arrangement, and we remain ready to make the payment as soon as DfID indicate that we can do so. We look forward to bringing the matter to a conclusion."
Richard Alderman, director of the SFO, said: "The SFO is concerned that this is resolved to everyone's satisfaction as quickly as possible."
SOURCE: FINANCIAL TIMES ONLINE
MY TAKE:
DFiD Inahusikaje? Huu siyo msaada kutoka Uingereza bali ni marejesho ya pesa za wizi inagwa wao wameuita 'false accounting'. Lakini kwa vile wahusika hapa TZ bado wapo mitaani na mjengoni hata BAE wanaona hakuna mwenye uchungu na hiyo pesa. Watawapa DFiD nao wamege ya kwao na kutuletea makaratasi ya matumizi.
BAE yet to pay £29.5m false accounting fine
By Caroline Binham, Legal Correspondent
BAE Systems is yet to pay the £29.5m that it owes Tanzania as part of a fine for false accounting, with questions to be formally answered in parliament as soon as Wednesday over why there has been such a prolonged delay in making the payment.
The UK aerospace and defence group admitted one count of false accounting in a London court in 2010, settling a six-year investigation that originally spanned four continents.
The charge to which it eventually pleaded guilty related to a radar system in Tanzania, for which the court fined the company £30m, with the bulk due to go to the people of the African nation.
Tanzania is yet to see any of the money that was meant to be distributed through charitable ventures. The parliamentary International Development Committee berated the company last July for not having made the ex-gratia payment, exacting an undertaking from the director of the Serious Fraud Office that he would pursue BAE for contempt of court if the money was not paid by the autumn of 2011. That deadline passed with no action.
At the beginning of February, BAE, the SFO and the Department for International Development said they would sign a memorandum of understanding, at which point BAE would have two weeks to pay the money, plus interest, to Tanzania. The memorandum of understanding is still to be signed.
Those with knowledge of negotiations said the delay was due to finalising exactly how the money would be spent in Tanzania.
"This process takes time to ensure that the systems are watertight and monitoring, reporting and auditing procedures are in place," a Department For International Development spokesman said. "We are nearly there and the memorandum of understanding is close to being finalised and will soon be sent to BAE and the Serious Fraud Office for their final agreement."
Hugh Bayley, a Labour party member of parliament, is expected to receive an answer on Wednesday to a parliamentary question he tabled on why the money had not yet been paid.
BAE said in a statement: "We are actively working with DfID to ensure the payment is made in accordance with their procedures, including their requirement for a memorandum of understanding to cover the arrangement, and we remain ready to make the payment as soon as DfID indicate that we can do so. We look forward to bringing the matter to a conclusion."
Richard Alderman, director of the SFO, said: "The SFO is concerned that this is resolved to everyone's satisfaction as quickly as possible."
SOURCE: FINANCIAL TIMES ONLINE
MY TAKE:
DFiD Inahusikaje? Huu siyo msaada kutoka Uingereza bali ni marejesho ya pesa za wizi inagwa wao wameuita 'false accounting'. Lakini kwa vile wahusika hapa TZ bado wapo mitaani na mjengoni hata BAE wanaona hakuna mwenye uchungu na hiyo pesa. Watawapa DFiD nao wamege ya kwao na kutuletea makaratasi ya matumizi.
