High Court bid over BAE probe drop

The decision to drop a probe into possible corruption over arms deals between BAE Systems and Saudi Arabia is being challenged in court.

In December 2006, the then Attorney General, Lord Goldsmith, announced that the probe was to be discontinued after Tony Blair, who was prime minister at the time, said the Saudis had privately threatened to cut intelligence co-operation with Britain unless the inquiry was stopped.

Lawyers are contesting the legality of the termination of the investigation by the Serious Fraud Office into the £43 billion Al-Yamamah deal struck in 1985. It provided Tornado and Hawk jets plus other military equipment.

Lawyers from Corner House Research and the Campaign Against Arms (CAAT) have now brought the High Court case after campaign groups won the right for a judicial review in November.

It followed a ruling by Lord Justice Moses that it was in "everyone's interest that a full hearing takes place."

Lord Justice Moses added at the time that the case raised "matters of concern and public importance" and that the challenge "cries out for a hearing".

The legal teams for Corner House and CAAT will argue that SFO director Robert Wardle "misdirected himself in law" when the decision to terminate the probe was announced.

Their grounds include accusations that the decision was tainted by Government concerns about trade with Saudi Arabia and diplomatic considerations.

Corner House says a letter released for the High Court hearing reveals Mr Blair's "concern" over possible harm to ongoing business negotiations, in particular the major deal for Britain to supply Typhoon aircraft to the Saudis.

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