THE US government has criticised Lord Goldsmith, the attorney-general, for dropping a Serious Fraud Office (SFO) inquiry into allegations of corruption involving Britain’s biggest defence firm and the Saudi royal family.
In an embarrassing rebuke, officials from the US State Department told Goldsmith’s office that they have “serious concerns” about the decision to drop the BAE Systems fraud investigation.
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The intervention of the American government has surprised some British officials as President George W Bush is close to the Saudi royal family.
Sources say the US action was driven by commercial interests. The Americans were among the first in the world to outlaw bribery abroad. They then led an international drive against such corruption which gave rise to the OECD’s antibribery convention.
US defence firms are said to be furious that they may now be at a disadvantage when competing with BAE.
http://www.timesonline.co.uk/tol/news/uk/article1364699.ece