Thursday, April 10, 2008

Saudi Arabia, Al-Yamamah Contract and Corruption: The Serious Fraud Office Acted Unlawfully

The judges had harsh words for the attitude of the SFO and the Blair government in never even considering the option of telling the Saudis their threats would be ignored.

"No one suggested to those uttering the threat that it was futile, that the United Kingdom's system of democracy forbad pressure being exerted on an independent prosecutor whether by the domestic executive or by anyone else; no-one even hinted that the courts would strive to protect the rule of law and protect the independence of the prosecutor by striking down any decision he might be tempted to make in submission to the threat."


THE GUARDIAN: The Serious Fraud Office (SFO) acted unlawfully in dropping an investigation into alleged bribery in an arms deal between BAE Systems and Saudi Arabia, the high court ruled today.

In a stunning victory for the activist groups that launched the legal challenge, the two judges said Tony Blair's government and the SFO caved in too readily to threats by Saudi Arabia over intelligence sharing and trade.

Lord Justice Moses and Justice Sullivan, using some scathing language, rejected the SFO's argument that it was powerless to resist the Saudi threats.

"So bleak a picture of the impotence of the law invites at least dismay, if not outrage," they said.

"Had such a threat been made by one who was subject to the criminal law of this country, he would risk being charged with an attempt to pervert the course of justice."

To give in so easily, the judges said, "merely encourages those with power, in a position of strategic and political importance, to repeat such threats, in the knowledge that the courts will not interfere with the decision of a prosecutor to surrender".

Campaign Against Arms Trade (CAAT) and Corner House Research had sought a review of the decision by the SFO director, Robert Wardle, in December 2006 to drop the investigation into allegations of bribery and corruption over the £43bn Al-Yamamah arms deal, agreed by the Thatcher government in 1985.

"No one, whether in this country or outside, is entitled to interfere with the course of our justice," Moses and Sullivan ruled. SFO Wrong to Drop BAE Inquiry, Court Rules >>> By Peter Walker and agencies | April 10, 2008

THE GUARDIAN: The Complete High Court Judgement

Summary of High Court Judgement

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FINANCIAL TIMES: UK ‘Unlawfully’ Scrapped BAE Probe: ”No-one, whether within this country or outside, is entitled to interfere with the course of our justice,” Lord Justice Moses told the court. “We intervene in fulfilment of our responsibility to protect the independence of the director and of our criminal justice system from threat.“ By Megan Murphy, Law Courts Correspondent | April 10, 2008

BBC: SFO Unlawful in Ending BAE Probe

Cross-posted at The Shrewd Economist

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