BAE Investigation by the U.S. DoJ "Could Become a Diplomatic Nightmare for Britain," Moans London's Sunday Times

1 de julio de 2007

<body><div id="article"><p>July 1, 2007 (LPAC)--The <em>Sunday Times</em> reflects the extreme concern from some layers in Britain, of what might come to light were the BAE case to get into U.S. courts. After retailing its limited and misleading version of what the BAE scandal is, the <em>Times</em> recounts that on the very day that the U.S. Justice Department announced it was launching an investigation in the BAE case, BAE's stock, which had been on an upward trend, tumbled 8%. <em>The Times</em> notes, "The change of heart in the City was prompted by the fearsome reputation of the Department of Justice, and the stringent penalties it can impose under the Foreign Corrupt Practices Act (FCPA), the main piece of anticorruption law in America."</p><p> <em>The Times</em> broaches the idea that some BAE top people could get extradited to the US, as has occurred in other cases, such as the "NatWest Three", three bankers from the elite National Westminster Bank, who were extradited to the United States and made to stand trial for their part in the Enron affair.</p><p> <em>The Times</em> wrings its hands that the U.S. can readily argue it has jurisdiction, since BAE does 36% of its business in the US, and "the Saudi deals have centered on payments made through the now-defunct Riggs Bank, based in Washington."</p><p>"The investigation by the Department of Justice could also become a diplomatic nightmare for Britain. As the Al-Yamamah deal was government-to-government, awkward questions about the involvement of the Ministry of Defence and Deso [the Defense Services Export Organization], its export agency, might be asked."</p></div></body>