MPs demand probe into BAE 'bribes'

A CALL for a Government investigation into sex, bribery and fraud allegations at BAE Systems came from MPs after it emerged that a top civil servant has washed his hands of the claims, arguing they are outside his remit.

In a newly-released letter, Ministry of Defence boss Sir Kevin Tebbit told the Serious Fraud Office he would not judge claims that £20m of BAE cash was used to sweeten officials linked to the £2bn-a-year Al Yamamah Saudi defence contract.

The deal, signed in 1985, provides Saudi Arabia with ships and aircraft including Tornado fighters.

Rosalind Wright, then head of the SFO, had written to Sir Kevin telling him of allegations about invoices sent to BAE, apparently for work that had not been done, 'since it is conceivable that Government money has been misused'. She admitted there was insufficient evidence for a criminal investigation.

Sir Kevin said the cash, allegedly used to pay for prostitutes, cars and a yacht for officials, was paid to a subcontractor to BAE. As a result, the propriety of the payments was the defence giant's responsibility and not his.

Sir Kevin said he had told BAE Systems chairman Sir Dick Evans of the SFO letter, despite claims that Sir Dick may have tolerated the matter. Sir Kevin accepted Evans' assurances there was no fraud involved.

But Liberal Democrat Shadow Chancellor Vince Cable has asked the attorney general Lord Goldsmith to check that the Government and BAE have acted properly.

He says the Ministry of Defence's attitude raises worrying questions about its 'cosy' relationship with BAE, its largest supplier.

Cable said: 'The MoD has given an evasive response saying that the payments were all handled by BAE Systems.' Cable claims this is implausible.

BAE says it abides by the laws of the UK and all other countries in which it operates.