Saudis threaten to break off diplomatic relations with Britain over "slush fund"!

[Roland99]

http://www.timesonline.co.uk/article/0,,2087-2459780,00.html

A senior Saudi diplomat in London has delivered an ultimatum to Tony Blair that unless the inquiry into an allegedly corrupt defence deal is dropped, diplomatic links between Britain and Saudi Arabia will be severed, a defence source has disclosed.

...

The Saudis are furious about the criminal investigation by the Serious Fraud Office (SFO) into allegations that BAE Systems, Britain’s biggest defence company, set up the “slush fund” to support the extravagant lifestyle of members of the Saudi royal family.

The payments, in the form of lavish holidays, a fleet of luxury cars including a gold Rolls-Royce, rented apartments and other perks, are alleged to have been paid to ensure the Saudis continued to buy from BAE under the so-called Al-Yamamah deal, rather than going to another country. Al-Yamamah is the biggest defence contract in British history and has kept BAE in business for 20 years.

At least five people have been arrested in the probe. They include Peter Wilson, BAE’s managing director of international programmes, and Tony Winship, a former company official who oversaw two travel and service firms that are alleged to have been conduits for the payments. Both deny any wrongdoing.

Sour grapes anyone?

[annabanana]

1. I hope they keep it up. The Saudi's need to develop a real

sense of the concept of "rule of law". We (& the UK) got in bed with the devil and it's getting hot in there.

[NMDemDist2]

2. what connections to the Carlyle group does BAE have?

let's see if google is my friend :evilgrin:

oh yeah baby!!! on edit here's a goodie eh?

In other Carlyle news, the firm purchased Fairchild Imaging, which manufactures charged coupled devices (CCD) and electronic imaging systems, in order for the company to operate independently and pursue non-aerospace markets.

There was no debt involved in the deal and the transaction value is undisclosed.

Fairchild Imaging has moved through the hands of some of the world's largest aerospace and defense companies through its history.

The company, which operated under the name BAE Systems Imaging Sensors prior to the transaction, spun off from BAE Systems North America, so that the parent can focus on its core aerospace businesses. “We’ve been part of large aerospace companies since the mid-’80s . . . and have gone through Loral to Lockheed Martin to British Aerospace and basically in that course of time, our business has really changed,” said Charles Arduini, the chief executive officer at Fairchild Imaging. “We‘re already a company that is largely in the commercial markets as opposed to aerospace and defense. So this spinout is really just a recognition of the focus of BAE's core business, and where the focus of our core business is.”

As part of the transaction, Carlyle will provide the resources necessary for product development and growing the company, said Arduini.

http://www.fairchildimaging.com/news/2001/may/7carlyle.htm

there is more, lots more......

[sam sarrha]

3. when will the tentacles from that be revealed here... can you imagine the catastrophe that being cut

off from their oil would cause..??