Saudi Prince Bandar Bribery Case Crosses the Atlantic
WASHINGTON - The U.S. Justice Department is investigating allegations of bribery by the British defense contractor BAE Systems to Prince Bandar Bin Sultan, a high-ranking member of the Saudi royal family with wide contacts and relations here.
The news brings a high-profile investigation initially launched in Britain to the United States, where the political influence of the Saudi royal family is well-known.
Although the British government dropped its own probe last December, citing national security considerations, U.S. prosecutors determined that BAE could be investigated under the Foreign Corrupt Practices Act because it used U.S. banks to allegedly transfer payments to accounts controlled by Prince Bandar.
The Justice Department involvement has had immediate ramifications, with the company’s shares losing eight percent of their value Tuesday.
“BAE Systems has been notified by the U.S. Department of Justice that it has commenced a formal investigation relating to the company’s compliance with anti-corruption laws, including the company’s business concerning the Kingdom of Saudi Arabia,” BAE Systems said in a statement sent to IPS.
It is not clear yet what prompted Washington to get involved the case, given its close relationship with both Britain and the Saudis, but the decision comes after weeks of lobbying by some European officials, and development and anti-corruption groups around the world who denounced the decision by the Tony Blair government to close its own investigation.
In a letter campaign, they urged Blair to reopen the Serious Fraud Office (SFO) inquiry into allegations of slush funds surrounding the 80-billion-dollar Al Yamamah arms deal between BAE Systems and Saudi Arabia, a transaction that dates back to 1985.
They argued that future efforts by Britain to prescribe governance and transparency standards for developing countries receiving aid and debt relief are likely to be viewed with skepticism.
The anti-bribery committee of the Organization for Economic Cooperation and Development had also demanded an explanation from the British government and decided to conduct a further examination of Britain’s efforts to combat bribery.
The SFO is still examining corruption charges involving BAE contracts in Romania, the Czech Republic, Tanzania and South Africa.
Meanwhile, an investigation by the British BBC earlier this month found that BAE paid nearly two billion dollars in bribes to the Saudi prince, a charge that both Prince Bandar and BAE vehemently deny.
Many activists say that the British government succumbed to political pressure both from BAE, Europe’s’ leading defense company, and from Saudi officials who threatened to cancel future lucrative arms deals.
Last year, Saudi Arabia signed an expanded military agreement with Britain, including a commitment to acquire at least 24 Eurofighter Typhoons to replace its air force fleet of Panavia Tornado Air Defense Variant (ADV) fighters.
They were part of the multi-billion-dollar Typhoon order that would provide the cornerstone of a third phase to the bilateral Al Yamamah arms agreement.
This agreement has already covered the delivery and support of 120 Tornado ADV and Interdictor Strike (IDS) aircraft, BAE Systems Hawk and Pilatus PC-9 trainers and other equipment.
The 2006 agreement also seeks to further develop Saudi Arabia’s national aerospace industry through the transfer of technology from BAE, the main contractor, and the establishment of additional in-country support facilities.
BAE says it is in the process of promoting an extensive upgrade of Saudi Arabia’s Tornado IDS aircraft in an effort to further boost the value of its Al Yamamah business activities.
But the expanded deals are just one factor in the investigation. Prince Bandar wields enormous political clout — even more so in the United States, where he spent much of his career and developed close relations with many U.S. politicians, including the Bush family.
He also recently endeared himself to U.S. foreign policy circles, including the powerful pro-Israel hawks in the U.S. Congress, with a rapprochement between his conservative kingdom and Israel, a key U.S. ally in the Middle East.
After he came to serve as Saudi Arabian King Abdullah’s national security adviser, he made unprecedented advances towards Israel.
In the past, U.S. citizens have reported they were refused a Saudi visa because their passports reflected travel to Israel or indicated they were born in Israel. This has not happened recently.
Bandar bin Sultan is also widely credited for forging an unprecedented front made up of his country, Jordan and Egypt, which rallied against Hezbollah in Lebanon during its war with Israel last summer.
The position won him praise in Washington and was heralded as a new era in Arab-Israeli relations.
Saudi Arabia is also likely to be a major player if the U.S. decides to take military action against Iran over Tehran’s nuclear program.
U.S. lawmakers have yet to make a statement on the case.
Copyright © 2007 IPS-Inter Press Service
Can you say Carlyle Group? I knew you could.
This allegation of bribery was sucessfully put to rest by Tony (the lapdog) Blair when it was investigated in England. The reason it’s being opened here is probably because the U.S. is damn mad as to why it didn’t get this huge, multi-billion dollar arms deal. Is blair falling out of Bush’s favor? One would think Blair must now be pretty mad. Talk about frienship between two thieves.
Saudi is very disliked by congress, the House having passed an amendment banning aid to Saudi, http://english.chosun.com/w21data/html/news/200706/200706240010.html
What is Georgie going to do to help his brother Bandar? He will, with papa’s help.
Indelible in my memory is a statement by Prince Bandar while being interviewed on US TV in which he justified “a little corruption” as being acceptable practice and no cause for getting overly upset. A few billion on contracts of multi-billions, now who would be concerned about that?I couldn’t believe my ears, but then hubris is the order of the day among the privileged rich ruling classes worldwide these days, isn’t it? The very rich like Bandar hog 95% of the planet’s wealth, and the planet is now where France was in 1789 and Russia in the early 20th century. Bandar in effect said “Let them eat cake.”
I think the books will be cooked to make it appear that ALL the prince’s bribes are at lapdog Tony’s door.
Republicans always nail any out of power co-conspirator to hide their own involvement. Later they will slip him a nice slice of graft pie when the heat is off if he hunkers down and keeps his mouth shut.
Yo Bandar, I’m impressed. You’re wearing jeans. How very western of you. Next you’ll be rappin’ with the boyz in da hood.
The article stated: Bandar bin Sultan is also widely credited for forging an unprecedented front made up of his country, Jordan and Egypt, which rallied against Hezbollah in Lebanon during its war with Israel last summer.
I think the Saudis and Israelis are forming an alliance against the Iranians and the growing shi’a influence in the region. The Saudis have been funding Sunni groups in Lebanon and Iraq for a while now. Its no surprise that they are working with the Israelis behind the scenes concerning Iran. Its the old the enemy of my enemy is my friend adage.
Karlof1,
>Saudi is very disliked by congress, the House having passed an
>amendment banning aid to Saudi
Could you please explain to me why on earth would the Saudi government which is one of the richest countries in the world, need US support or money?
Now how about this “lovely picturesque dawg couple,” ya’ll? They do look equally crooked and phony as hell, which they are.
Bank of Credit and Commerce International? Is Al Yamamah the latest version of this?
“Could you please explain to me why on earth would the Saudi government which is one of the richest countries in the world, need US support or money?”
1) Peak Oil is coming and Saudis have been creative about how much they have left.
2) Saudi monarchy increasing under attack from domestic resistance groups such as Al Quaida.
3) US bases still exist on Sauid sand since Gulf War 1, further inflaming domestic opinions of the monarchy.
4) Saudi needs allies against a perceived threat from Shia Iran whose influence in the Mideast is ascendant.
…All boils down to Saudi monarchy staying in power over a turbulant populace.
Join the George W. Bush Movin’ Out Campaign!
http://www.youtube.com/watch?v=aB6PNTKM2xg
YouTube instructional video for action in YOUR AREA!
B.ring
U.S.
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H.ome!
Farhad Abdolian wonders:
Could you please explain to me why on earth would the Saudi government which is one of the richest countries in the world, need US support or money?
******************
Farhad you have it bacvkwards–or at best only half correct. I commend for your instructioon the 31 year old epic movie “Network” starring william Holden and Faye Dunnaway. Back when it was made it was considered a satirical farce–today it looks like prophecy. IOn a scene where the star newsanchor is being upbraided by the corporate CEO, because he urged his audience to protest the acquisition of controlling interst of his network by a Saudi owned holding company, the CEO says:
“You have meddled with the primal forces of nature, Mr. Beale, and I won’t have it, is that clear?! You think you have merely stopped a business deal - that is not the case! The Arabs have taken billions of dollars out of this country, and now they must put it back. It is ebb and flow, tidal gravity, it is ecological balance. You are an old man who thinks in terms of nations and peoples. There are no nations! There are no peoples! There are no Russians! There are no Arabs! There are no Third Worlds! There is no West! There is only one holistic system of systems, one vast and immane, interwoven, interacting, multi-variate, multi-national dominion of dollars! Petro-dollars, electro-dollars, multi-dollars, reichmarks, rins, rubles, pounds and shekels! It is the international system of currency which determines the totality of life on this planet. That is the natural order of things today. That is the atomic, and subatomic and galactic structure of things today. And you have meddled with the primal forces of nature, and you will atone!”
“Am I getting through to you, Mr. Beale? You get up on your little twenty-one inch screen and howl about America and democracy. There is no America. There is no democracy. There is only IBM, and ITT, and AT and T, and DuPont, Dow, Union Carbide, and Exxon - those are the nations of the world today. What do you think the Russians talk about in their councils of state - Karl Marx? They get out their linear programming charts, statistical decision theories and mini-max solutions and compute the price-cost probabilities of their transactions and investments just like we do. We no longer live in a world of nations and ideologies, Mr. Beale. The world is a college of corporations, inexorably determined by the immutable by-laws of business. The world is a business, Mr. Beale. It has been since man crawled out of the slime, and our children will live, Mr. Beale, to see that perfect world in which there’s no war or famine, oppression or brutality. One vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock, all necessities provided, all anxieties tranquilized, all boredom amused. And I have chosen you to preach this evangel, Mr. Beale.”
This is why Goergie boy gives his brother Bandar Bush a kissy on the cheek, and walks hand in hand with him and other members of the Saudi royal family. Think Godfather and organized crime. That, along with what Samski elaborated, is your answer.
“Although the British government dropped its own probe last December, citing national security considerations, U.S. prosecutors determined that BAE could be investigated under the Foreign Corrupt Practices Act because it used U.S. banks to allegedly transfer payments to accounts controlled by Prince Bandar.”
Gordon Brown is in power now and will hopefully be a more positive force in this corrupt, money-laundering world of the elite.
Let’s see; we have:
Anti-Corruption Groups
Anti-Bribery Groups
Anti-Money-Laundering Groups
Anti-Trust Law Groups, etc……….
Fraud Officers
Foreign Corrupt Practices Acts, and so on……..
And of course, a delicious Sugar-spiced barbequed Salmon Recipe which I would like to share with all of you:
1/2 Cup Sugar
1 Teaspoon dry mustard
1/4 Teaspoon ground cinnamon
1 Tablespoon Spanish or Hungarian paprika
2 Teaspoons cocoa
1/2 Cup chili powder
2 Tablespoons ground cumin
1 Tablespoon freshly ground black pepper
2 Tablespoons course salt
Are you feeling “hopeful” yet? If you like salmon, you must try the recipe…..you’ll love it.
The words are be all that you can be, corpgove calls on our patrotism,they profit while you kill or be killed.