Sudan: Oil Companies Complicit in Rights Abuses Indonesia: Media Under Attack in Aceh

Millions risked on BAE contract: Taxpayers' money used to underwrite massive arms deal with Saudi government

The Guardian 27 Nov 2003 BY ROB EVANS AND DAVID LEIGH
The Guardian - United Kingdom; Nov 27, 2003 http://www.transparency.org/cgi-bin/dcn-read.pl?citID=95052

Hundreds of millions of pounds of British taxpayers' money is being put at risk in huge new arms sales to Saudi Arabia, the Guardian Newspaper disclosed in a report yesterday. "(British) Government financial guarantees against the collapse of the Saudi ruling family have already been secretly given to the giant arms firm BAE Systems. BAE is currently negotiating fresh contracts for weapons, advanced avionics and refurbished planes ," the Guardian said in an exclusive report.

Although the British government refused to disclose the size of the new arms deals, they are reported to be worth up to $4.5bn (pounds 2.7bn). "Taxpayer guarantees for BAE were signed on September 1, with the backing of the defence secretary, Geoff Hoon, by the government's export credits guarantee department (ECGD)," the report said. BAE is refusing to comply with the ECGD's own anti-corruption measures and yet has been able to use its political muscle to force through risk insurance that will protect its profits. The firm has refused to hand over documents detailing the secret commissions it is paying, believed to benefit figures connected with (influencial) Saudi family, the report added. Companies are normally required to disclose the identity of agents and the size of their commissions for the ECGD to satisfy itself that Whitehall is not misusing taxpayers' money.

The ECGD was refused copies of the documents identifying middlemen nd commissions despite agreeing to visit BAE's headquarters in August to obtain the papers. The ECGD told the Guardian yesterday that BAE had subsequently removed all references to agents' commissions and then resubmitted the contract documents. "BAE submitted new proposals whereby no agents' commission was to be paid under the project," the Guardian quoted the organisation. Susan Hawley, of the Corner House group, which campaigns against corruption, said last night: "We find it astonishing that the commission has magically disappeared. ECGD must be either naive or wilfully blind to think this commission has simply vanished.

"BAE is a magnet for corruption allegations wherever it operates. It is shocking that the ECGD have given cover on this project before previous allegations have been properly investigated and resolved." Taxpayer support for this fresh instalment of the long-running and controversial Al Yamamah deals with Saudi Arabia was signed behind the public's back in autumn only days before "slush fund" allegations about BAE were exposed in the Guardian.

The Serious Fraud Office is currently studying the allegations that BAE has for years been running a pounds 20m slush fund designed to bribe influential Saudis with prostitutes, yachts, cars and houses.
In a similar scandal in the past, the ECGD lost pounds 650m of taxpayers' money by giving guarantees to Saddam Hussein on the instructions of the Thatcher government. In the 70s, huge tank contracts backed by the Labour government were obtained in Iran by bribing the Shah and intermediaries, only for the deals to collapse with the fall of the regime, the Guardian report said.

The Ministry of Defence maintained its reputation for secrecy over the deals when asked the size and nature of the contracts now being supported by the taxpayer. It replied: "Everything to do with Al Yamamah is confidential." According to Middle East defence sources, BAE has been negotiating to upgrade the fleet of Tornado warplanes it sold to the Saudi regime under the original highly lucrative Al Yamamah deals which began in 1985.

The RAF is currently refitting its own Tornados with modernised avionics and "smart" weapons systems. These are the kinds of upgrades BAE now wants to sell to the Saudis. In a statement to the Guardian, the company said: "BAE Systems gives information to ECGD in accordance with the procedures they have laid down for the provision of ECGD cover. In all cases where ECGD cover has been put into effect, BAE Systems has provided ECGD all required information." guardian.co.uk/military

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GEAC SEEKS A PROBE INTO UNAUTHORISED MANUFACTURING OF DRUGS

The Genetic Engineering Approval Committee (GEAC) under the aegis of the Ministry of Environment & Forests has viewed with concern reports of manufacturing of recombinant Streptokinase by M/s. Shanta Biotechnics Pvt. Ltd., Hyderabad and the trial of the same on patients in Hyderabad without the prior approval of the GEAC. GEAC requested Drug Controller General of India (DCGI) to conduct a full inquiry into the incident and into the report of deaths of some patients. A final view on what action needs to be initiated against the erring company will be decided after getting all reports.

There was also a request from CARE to waive the condition of post marketing surveillance, which was imposed by GEAC in its 34th meeting held on November 7, 2002. While recommending the import of crude Degummed Soyabean Oil for a period of one year, GEAC had stipulated that a post marketing surveillance through ICDS programme managers should be carried out and results of the monitoring should be submitted for consideration of the GEAC after obtaining the views of Indian Council for Medical Research. At today's meeting GEAC deferred a decision on the issue and decided to seek more information from CARE and the concerned government departments.

1. The GEAC which met under the Chairmanship of Ms. Meena Gupta, Additional Secretary in the Ministry of Environment & Forests, gave environmental clearance for import of several pharmaceutical products by various firms. The clearance is subject to other regulatory requirements existing in the country.

The GEAC deferred a decision on the application of M/s. Rasi Seeds Pvt. Ltd., Attur, Tamil Nadu, a sub licensee of the same Bt.cotton technology which was acquired by MAHYCO from Monsanto, USA, for seed production of transgenic cotton hybrids, namely, RCH-134 and RCH-138 in an area of 200 hectres for Kharif 2003 in the Northern region because of non-availability of basic data. Similarly, GEAC deferred any decision to undertake seed production of 7 transgenic cotton hybrid seed in 127 hectres by MAHYCO, Mumbai. The hybrids are Bt.MRC-6301, Bt.MRC-6160, Bt.MRC-6304, Bt.MRC-6703, Bt.MRC-6322, Bt.MRC-6918, and Bt.MRC-6928.

The GEAC also deferred a decision on the proposal for import and marketing of Recombinant Bovine Somatrotropin from L.G. Chemicals, Korea pending further information from the Department of Animal Husbandry and IVRI. (keralamonitor.com)