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UK Parliament calls on Tanzania to prosecute for bribes

On Wednesday 30 November, the UK Parliament’s International Development Committee released 'Financial Crimes and Development', a report which calls on the Government of Tanzania to bring individuals to court to answer allegations that corrupt payments were made during the sale of an air traffic control system by BAE Systems in 2001.

The sale of this complex military system to one of the poorest countries in Africa prompted an investigation by the Serious Fraud Office, which discovered that a third of the £28 million contract had been diverted into secret offshore bank accounts. The SFO believed that this money was used to pay bribes to Tanzanian politicians and officials.

In February 2010, BAE Systems admitted two criminal charges and said it would pay fines of £286 million to settle US and UK probes into the firm. However the company has always failed on admitting to corruption or bribery.

Transparency International UK's Director, Chandu Krishnan, said this report should be welcomed by all those who are concerned about bribes paid overseas by British companies. "Bribery is not a victimless crime and it is important that reparations are also made to the countries whose citizens suffer when bribes are paid.

“The long saga of allegations about corruption involving BAE Systems has been a national embarrassment to both the UK and Tanzania, and it is astonishing that no individual has yet been found guilty despite the company having to pay fines and reparations of $450 million for Tanzania and other cases. We are pleased to hear that the Tanzanian government may prosecute individuals, and hope that the UK authorities will cooperate fully if UK nationals are found to have broken Tanzanian law.  We particularly endorse the suggestion that the Government’s Anti-Corruption Champion should publish annual reports on his work.”
 

Read Huffington Post's article '"Alarming" Failures In BAE Systems Settlement Deal With Tanzania, Development Committee Report Says'.

Read the first part of the International Development Commitee's report 'Financial Crimes and Development'.

Read the second part of the International Development Commitee's report 'Financial Crimes and Development'.