High Court challenge over BAE probe

Updated 23.28 Fri Nov 09 2007

Keywords: High Court, BAE, Saudi Arabia

The High Court has agreed to hear a pressure group's challenge to a decision to drop a corruption probe into BAE Systems.

The Serious Fraud Office announced last year it was ending investigations into an arms deal between Saudi Arabia and BAE - Britain's biggest defence contractor.

Lord Justice Moses, sitting with Mr Justice Irwin, said "matters of concern and public importance" had been raised and the challenge "cries out for a hearing"

The government, led at the time by Prime Minister Tony Blair, concluded that proceeding with the investigation would damage Britain's national security, but political opponents said the decision went against the rule of law.

After a brief hearing on Friday, Corner House Research, a group that campaigns for enforcement of the law in overseas corruption offences, and the Campaign Against Arms Trade were both given permission to seek judicial review.

Lord Justice Moses, sitting with Mr Justice Irwin, said "matters of concern and public importance" had been raised and the challenge "cries out for a hearing".

BAE denies that it made wrongful payments in its dealings with Saudi Arabia. The US Justice Department is also probing the company's compliance with anti-corruption laws.