U-turn by BAE on "slush" inquiry

[emad]

The Times
By Peter Klinger

BAE SYSTEMS, Britain’s biggest defence contractor, yesterday conceded that it was being investigated by the Serious Fraud Office (SFO) over an alleged £60 million “slush fund” that helped to secure arms contracts in Saudi Arabia.

The admission comes only two weeks after BAE insisted that it was not a target of the SFO inquiry but was itself a possible fraud victim.

The SFO’s investigation centres on a fund said to have been set up by BAE to bribe Saudi officials with gifts, hospitality and cash.

BAE, which has denied the allegations, said that the SFO had widened its inquiry to include the defence company. The investigation, launched two weeks ago, originally focused only on two travel agencies that carried out business for BAE.

http://www.timesonline.co.uk/newspaper/0,,173-1363436,00.html