Kerry calls for "full disclosure of the facts" in BAE probe

US probe, senator's concern put BAE under spotlight

Thursday • June 28, 2007

The US operations of BAE Systems have come under the spotlight amid a government probe and as it emerged Wednesday that a US senator has raised concerns about allegations the British arms group violated anti-bribery laws.

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BAE said Tuesday that the Justice Department had launched an inquiry into the company's compliance with US anti-corruption laws, including lucrative arms contracts awarded to BAE by Saudi Arabia.

British media reports have alleged BAE set up a 120-million-dollar (60-million-pound) slush fund for members of the Saudi royal family to secure business dating back to 1985, and of making illegal payments to those involved in its deals. The reports claim some of the funds passed through a US bank in Washington.

It emerged Wednesday that Democratic Senator John Kerry, a member of the powerful Senate Foreign Relations Committee, had weighed into the matter.

Kerry sent a letter to US Attorney General Alberto Gonzales, dated June 21, outlining his concern at reports that BAE may have "violated US anti-bribery laws in relation to its international arms deals."

"Full disclosure of the facts is essential," Kerry wrote in his letter, a copy of which was obtained by AFP Wednesday.

The senator asked Gonzales if the Justice Department had been in contact with a regulatory panel that has reviewed BAE's takeover bid for Armor Holdings, among other questions.

BAE officials in Britain have strenuously denied any wrongdoing and the company spokeswoman said Wednesday that BAE was "not aware of any specifics" with regard to Kerry's letter.

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