Saudi probe put Al-Qaeda info at risk

Vital information on Al-Qaeda would have been lost if an investigation into alleged corruption by BAE Systems during an arms deal with Saudi Arabia was pursued, Britain’s head of overseas intelligence warned ministers, according to a report released Tuesday.

An annual report by the UK’s Intelligence and Security Committee revealed ministers were told the inquiry could have had damaging repercussions on the fight against terrorism, and that British lives would be put at risk if Saudi Arabia ended intelligence-sharing, newswire AP reported.

An inquiry into allegations that BAE made improper payments to Saudi officials in return for lucrative arms contracts was dropped in December 2006 by the UK’s Serious Fraud Office (SFO) on the grounds of national security.

According to the report MI6 had raised objected to the investigation before the SFO decided to drop the case. Its head, John Scarlett told the committee “There were threats made to the existence of the cooperation (and) there was reason to take those threats seriously.”

General Peter Goldsmith added: “All relevant agencies were clear about the crucial importance of UK-Saudi cooperation in the fight against terrorism and the damage to UK interests – and potentially, UK lives – if that cooperation were withdrawn.”

Saudi Arabia and Britain sealed a $8.84 billion deal for 72 Eurofighter Typhoon jets in September. Sources said the pact would use cash from the Saudi defence budget, instead of oil shipments used in previous deals, which critics say make it easier to conceal secret payments.

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