Pressure to reopen bribery investigation

The Government is under pressure to reopen the investigation into alleged bribery involving BAE Systems and Saudi Arabia.

Two senior judges at the High Court ruled it had been unlawful to drop the investigation, deciding the Government and Serious Fraud Office (SFO) "unlawfully submitted" to threats that there could be a terror attack unless they dropped the investigation.

Lord Justice Moses and Mr Justice Sullivan condemned the Government's "abject surrender" to the "blatant threats" that Saudi co-operation in the fight against terror would end unless the probe was halted.

The judges said: "We fear for the reputation of the administration of justice if it can be perverted by a threat."

They warned that any similar unlawful threats to the rule of law in the future must be resisted by Government - or the courts would intervene again.

They added: "No one, whether within this country or outside, is entitled to interfere with the course of our justice."

Submission to a threat was only lawful "when it is demonstrated to a court that there was no alternative course open to the decision-maker".

The ruling was a victory for campaigners Corner House and the Campaign Against Arms Trade (CAAT), who had argued that the SFO decision to stop the investigation was tainted by Government concerns about trade with Saudi Arabia and diplomatic considerations.

They accused British authorities of giving in to blackmail and said the decision to drop the probe was illegal under the Organisation for Economic Co-operation and Development's (OECD's) Anti-Bribery Convention.

The judges said the man behind the threats was Prince Bandar, the head of the Saudi national security council and son of the crown prince.

He has been the subject of accusations that he took more than £1 billion in secret payments from BAE.

The SFO had launched an investigation into BAE's £43 billion Al-Yamamah arms deal with Saudi Arabia in 1985, which provided Tornado and Hawk jets plus other military equipment.

Tony Blair, who was prime minister when the investigation was scrapped in 2006, said the Saudis had privately threatened to cut intelligence co-operation with Britain unless the inquiry was stopped.

In December 2006, the then attorney general, Lord Goldsmith, announced the investigation into the arms company was to be discontinued but it was SFO Director Robert Wardle who took the decision.

The judges said Mr Wardle had failed to satisfy the court that all that could reasonably be done had been to resist the threats.

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