Kachanchabuseta
JF-Expert Member
- Mar 8, 2010
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HONGERA MEMBE AND MP NDUGAI
NAONA KAZI YA WANAJAMII FORUMS IMEGONGA MWAMBA
MPs have demanded that BAE Systems pay the Tanzanian government £29.5m in full and immediately - or face further legal action
The British defence company, which agreed 16 months ago to pay the sum as part of a settlement with the Serious Fraud Office, was accused by members of the International Development Committee of "procrastinating" and creating delays that amounted to a "complete sham".
BAE, whose sale of a radar system to Tanzania was the subject of an international corruption probe, said the settlement payment had been delayed because a court had to finalise the amount. The company, represented by Philip Bramwell, general counsel, and Bob Keen, head of government relations, said BAE had set up an "advisory board" to ensure the money reaches the best possible causes in Tanzania and was hoping to release the first £10m tranche "within weeks".
MPs, who held the "one-off session" as part of a wider probe into financial crime, retorted that the company had been ordered to pay a fine for serious fraud, "not to set up a charitable trust". They said they thought the advisory board was a "complete sham" that was merely wasting more time.
Richard Alderman, director of the SFO, told the Committee that BAE's handling of the payment to Tanzania was "unsatisfactory and frustrating". He agreed that BAE had to wait until the precise settlement had been finalised by a judge. But he said he was surprised that company had not put in place any contingency plans to make the payments - "there was nothing to proclude them for doing that". He backed MPs calls for BAE to make the payments quickly and said he was prepared to take the case "to the next stage" if he felt this was not going to happen.
Alan Duncan, the Minister for the Department of International Development (DFID), said he was also "baffled" by the reasons BAE had given for not paying the fine immediately.
SOURCE: THE TELEGRAPY
NAONA KAZI YA WANAJAMII FORUMS IMEGONGA MWAMBA
MPs have demanded that BAE Systems pay the Tanzanian government £29.5m in full and immediately - or face further legal action
The British defence company, which agreed 16 months ago to pay the sum as part of a settlement with the Serious Fraud Office, was accused by members of the International Development Committee of "procrastinating" and creating delays that amounted to a "complete sham".
BAE, whose sale of a radar system to Tanzania was the subject of an international corruption probe, said the settlement payment had been delayed because a court had to finalise the amount. The company, represented by Philip Bramwell, general counsel, and Bob Keen, head of government relations, said BAE had set up an "advisory board" to ensure the money reaches the best possible causes in Tanzania and was hoping to release the first £10m tranche "within weeks".
MPs, who held the "one-off session" as part of a wider probe into financial crime, retorted that the company had been ordered to pay a fine for serious fraud, "not to set up a charitable trust". They said they thought the advisory board was a "complete sham" that was merely wasting more time.
Richard Alderman, director of the SFO, told the Committee that BAE's handling of the payment to Tanzania was "unsatisfactory and frustrating". He agreed that BAE had to wait until the precise settlement had been finalised by a judge. But he said he was surprised that company had not put in place any contingency plans to make the payments - "there was nothing to proclude them for doing that". He backed MPs calls for BAE to make the payments quickly and said he was prepared to take the case "to the next stage" if he felt this was not going to happen.
Alan Duncan, the Minister for the Department of International Development (DFID), said he was also "baffled" by the reasons BAE had given for not paying the fine immediately.
SOURCE: THE TELEGRAPY