BAE in South Africa election storm
Andrew Feinstein resigned as an MP in 2001 in protest at his own administration’s refusal to allow an unfettered inquiry into a 5bn weapons deal that was tainted by claims of high-level corruption.
The defence giant is still under investigation by the Serious Fraud Office over deals in six countries - South Africa, Chile, Romania, Tanzania, the Czech Republic and Qatar - although a probe into Saudi bribe claims has been scrapped.
Speaking at a heated BAE annual meeting, Feinstein said: ‘Give this meeting an assurance that not one penny found its way into the hands of one South African official or politician.
One senior ANC executive committee member told me the 1999 election campaign was funded from the proceeds of the arms sale.’
BAE chairman Dick Olver declined to comment on Feinstein’s specific allegations, saying an SFO investigation into similar claims was ongoing. He added: ‘You can be assured all information is being passed and help is being offered in a fulsome way.’
After the meeting, Feinstein - who became an MP in 1994 - said he was always puzzled how the party was able to afford the services of Bill Clinton and Al Gore’s former political adviser, Stanley Greenberg.
BAE (down 2p at 433p) is accused of over-charging the South African government for Hawk and Gripen aircraft. A similar deal - believed to have been tabled by Italian firm Aero Macchi - would have cost half as much.
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Feinstein said he has been helping the SFO with its probe into the arms deal. He was part of the South African parliament’s Public Accounts Committee, but resigned when his attempts to investigate BAE’s 1999 arms deal were blocked.
Mike Turner, CEO of BAE, defended the group’s business ethics saying: ‘In all aspects of our business we behave ethically and uphold the law.’
Following the meeting, Turner responded angrily to further questions on the subject, saying: ‘Are you saying I’m a liar? Mike Turner does not lie.’
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