Saudi arms deal inquiry closes in on secret papers

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The Serious Fraud Office is on the brink of obtaining information from Swiss banks which may implicate the Saudi royal family in secret arms-deal commissions of more than £100m, sources close to the attorney general's office confirmed yesterday.

The SFO has been inquiring for three years, in some secrecy, into allegations of systematic corruption in international deals arranged by Britain's biggest arms company, BAE Systems.

But it was only this autumn that the Saudis, along with BAE executives and officials of the MoD's arms sales department, DESO, became aware of how much progress the SFO has made. Sources close to the Swiss say the authorities there notified two middlemen that access to their bank accounts was being sought .

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According to internal Cabinet Office documents seen by the Guardian, the Saudi royal family relies on a flow of MI6 intelligence from Britain on the neighbouring Shia Muslim regime in Iran. The royals, who are Sunnis, are also a target of al-Qaida, being accused of despotism and corruption. It would weaken their own position to break off intelligence links with Britain.


http://www.guardian.co.uk/international/story/0,,1952321,00.html