UK sets poor example on EU arms sales corruption

2.13.01pm GMT Wed 17th Jan 2007

Speaking in the European Parliament on a report on the EU code of conduct on arms exports, London's Liberal Democrat MEP Baroness Sarah Ludford has denounced the British government's lack of leadership through its apparent condoning of corrupt practices in arms sales to Saudi Arabia and Tanzania.

Baroness Ludford commented:

"This new European Parliament report is right in saying that irresponsible arms sales hinder democratic, economic and social development and contribute to corruption. It is an utter disgrace that this Labour government values arms deals more highly than the rule of law or promoting sustainable development, and turns a blind eye to or even endorses massive corruption."

"It is unacceptable that the British government gave BAE Systems the green light for the Tanzanian deal despite suspicions of dodgy dealings and the diversion of scarce resources from the country's pressing humanitarian needs, when almost 2 out of 5 Tanzanians live on less than a dollar a day and half are undernourished."

"The UK has set a terrible example for new and future member states. Latest entrants Romania and Bulgaria are under monitoring arrangements designed to check that they respect EU norms on independence of judges and elimination of corruption. Tony Blair has completely undermined the EU's credibility on corruption in arms deals."

Notes

Last December the Serious Fraud Office was forced by the government to abandon its investigation into claims that BAE Systems had paid bribes to secure arms deals with Saudi Arabia. Attorney General Lords Goldsmith argued that it had been 'necessary to balance the need to maintain the rule of law against the wider public interest'. It also said abandonment of the case was necessary for national security reasons; M16 reportedly disagreed.

Reports also suggest that BAE Systems paid a $12 million commission (30% of the contract price) into a Swiss bank account in return for the Tanzanian government's purchase of a $40 million military radar system widely regarded as unnecessary.

The EU Code of Conduct on Arms Exports is an agreement designed to set common standards across the EU for the export of military equipment. Under its provisions, all EU member states have agreed to apply a standard set of criteria to assess applications of licenses for the export of military equipment.