Settlement over BAE Systems corruption cases is encouraging

Commenting on settlement of the Serious Fraud Office (SFO) and Department of Justice (DoJ) investigations of BAE Systems for foreign bribery today,

Chandrashekhar Krishnan, Executive Director of Transparency International UK said:

“The SFO and DoJ must be congratulated on finally achieving an outcome. It is important for companies to receive large fines if they have engaged in unethical behaviour. We hope this settlement will now allow BAES to draw a line under its past and will send a message to UK companies that corruption does not pay.

“When the full details of the settlements are known, it will be clearer whether the penalties are sufficiently high in relation to the seriousness of the offences; whether the company will be subject to debarment from government contracts; whether individuals will be prosecuted and whether an external compliance monitor will be appointed.

“This action, particularly by the DoJ, which has imposed a much larger penalty and has also dealt with the Al Yamamah investigation, also highlights the need for a new Bribery Act in the UK. For a Bribery Act to be successful, sufficient resources for effective enforcement will be crucial in order to deliver faster prosecutions and encourage companies guilty of corrupt practices to admit their guilt and not spend years blocking investigations.”