BAE Systems (LON:BA) have been severely criticised by a UK parliamentary inquiry into a corruption case surrounding an air-traffic-control deal with Tanzania. The MP’s accused BAE of setting up a compensation arrangement with Tanzania that they described as a ‘complete sham’.
BAE admitted to not keeping accounting records of an £8m payment made to the agent who brokered the deal, the company was found not guilty of wider corruption charges following a plea bargain.
In the plea bargain, BAE agreed to pay £30m to the people of Tanzania. BAE and the Serious Fraud Office said they could not say if the £8m was used for bribery to seal the radar sale, but BAE lawyer, Philip Bramwell, said the company sincerely apologised for events of the past - and he agreed it would not make payments similar to the £8m now.