Al-Yamamah Arms Deal - Corruption Allegations

Corruption Allegations

There have been numerous allegations that the Al Yamamah contracts were a result of bribes ("douceurs") to members of the Saudi royal family and government officials.

Some allegations suggested that the former prime minister's son Mark Thatcher may have been involved, however he has strongly denied receiving payments or exploiting his mother's connections in his business dealings.

In February 2001, the solicitor of a former BAE Systems employee, Edward Cunningham, notified Serious Fraud Office of the evidence that his client was holding which related to an alleged "slush fund". The SFO wrote a letter to Kevin Tebbit at the MoD who notified the Chairman of BAE Systems but not the Secretary of Defence. No further action was taken until the letter was leaked to and reported on by The Guardian in September 2003.

In May 2004, Sir Richard Evans appeared before parliament’s defence select committee and said: "I can certainly assure you that we are not in the business of making payments to members of any government."

In October 2004, the BBC's Money Programme broadcast an in-depth story, including allegations in interviews with Edward Cunningham and another former insider, about the way BAE Systems alleged to have paid bribes to Prince Turki bin Nasser and ran a secret £60 million slush fund in relation to the Al Yamamah deal. Most of the money was alleged to have been spent through a front company called Robert Lee International Limited.

In June 2007 the BBC's investigative programme Panorama alleged that BAE Systems "..paid hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan."