British court overturns BAE ruling | |||
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Britain's highest court has ruled that the country's financial regulator acted lawfully when it halted a corruption inquiry into a multi-billion dollar contract between BAE Systems PLC and Saudi Arabia. The SFO had been investigating allegations that BAE, one of the world's largest arms makers, ran a multi-million dollar "slush fund," offering sweeteners to officials from Saudi Arabia in return for lucrative contracts as part of the $65bn Al-Yamamah arms deal in the 1980s. But in 2006, Blair told the SFO to stop its investigation, saying it could threaten intelligence links with Saudi Arabia. Al Jazeera correspondent Richard Bestic said the final ruling will be a matter of great satisfaction for both the British and Saudi government. "What was argued successfully here in the House of Lords, Britain's highest court of appeal was that national interest was a matter that could bring about the closure of prosecutions, the shutdown of prosecutions, as in this case," he said. "Rather than the shut down of inquiries, it was argued by lawyers for the British government that this sort of thing happens all the time and the defining line between what was of a matter of national interest, what was a matter of national security was very difficult to define." |