FBI probes EADS unit over Saudi deal - report

Defence contractor allegedly made improper payments to Saudi National Guard
By Daniel Shane
Mon 11 Feb 2013 02:55 PM

The US Federal Bureau of Investigation (FBI) is looking into
allegations that a unit of European defence giant EADS made improper payments
regarding a deal with the Saudi National Guard, it was reported.

According to London’s Financial
Times
, US authorities are considering investigating whether GPT Special
Management Systems, a UK-based subsidiary of EADS that sells communications
equipment, bribed Saudi officials with luxury cars and GBP£11m in payments.

The UK’s Serious Fraud Office (SFO) is already investigating
the claims and the FT reported that the FBI was already in possession of
documents and witness statements related to the allegations.

The US interest in the case stems from a claim that GPT, which
sells equipment via the UK’s Ministry of Defence, made improper payments to the Saudis via accounts under US jurisdiction.

A spokesperson for EADS told the FT that it had not been
contacted by the FBI or any other US agency in relation to GPT.

A separate investigation by the UK in 2006 into whether
British-based contractor BAE Systems bribed Saudi officials to win a GBP£43bn fighter jet deal was shuttered by
then Prime Minister Tony Blair, who cited economic and diplomatic interests.

Suspicions over potential wrongdoing
by GPT in the EADS-Saudi National Guard case were said to have been raised by a
senior executive within the company over a period of several years.

That employee reportedly
fled Saudi Arabia in 2011, before passing on emails and documents to Britain’s
SFO.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.