Difference between revisions of "Al-Yamamah arms deal"
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|wikipedia=https://en.wikipedia.org/wiki/Al-Yamamah_arms_deal | |wikipedia=https://en.wikipedia.org/wiki/Al-Yamamah_arms_deal | ||
|constitutes=fraud, arms deal | |constitutes=fraud, arms deal | ||
| − | |description=A multi billion dollar | + | |description=A complex series of multi billion dollar arms for oil deals set up under the government of Margaret Thatcher, involving a bunch of deep state arms dealers, and her son - who earned £12 million. The total fines have been in the hundreds of millions, while profits and kickbacks are counted in billions. |
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It was reported in the British press and later confirmed that the British government took a 2 percent fee from the Al-Yamamah accounts, which amounts to close to $1.6 billion over the life of the 20-plus year contract. <ref>http://www.theguardian.com/world/2010/feb/05/bae-saudi-yamamah-deal-background</ref> | It was reported in the British press and later confirmed that the British government took a 2 percent fee from the Al-Yamamah accounts, which amounts to close to $1.6 billion over the life of the 20-plus year contract. <ref>http://www.theguardian.com/world/2010/feb/05/bae-saudi-yamamah-deal-background</ref> | ||
| + | |||
| + | ==The Deal== | ||
| + | The Deal had 3 main tranches: | ||
| + | # Al-Yamamah I, 1985, signed by [[Michael Heseltine]] ([[Defence Secretary]]), worth between £40 billion to £50 billion, involving 72 Tornado planes, 30 Hawk trainer jets and 30 other trainer planes<ref name=tel21/> | ||
| + | # Al-Yamamah II, 1993, for another 48 Tornado fighter jets | ||
| + | # Al-Yamamah III, 2005, 72 Eurofighter Typhoons for up to £10bn<ref name=g2007>http://www.theguardian.com/world/2007/jun/07/bae15</ref> | ||
| + | The deal included an insurance for [[BAE Systems]] so that the UK government would pay in case the [[Saudi Arabia]]n government collapse and was unable to pay its debts.<ref name=gins>http://www.guardian.co.uk/baefiles/story/0,,2090505,00.html</ref> | ||
==Origins== | ==Origins== | ||
| − | The deal between [[BAE Systems]] and the [[Saudi Arabia]]n government appears to have been brokered by a range of [[deep state actors]], notably members (and later, [[Chairman of Le Cercle|chairmen]] of [[Le Cercle]]) - [[Jonathan Aitken]], who was convicted in this connection. The first stage of the deal was signed on 26 September, 1985, at which time [[Norman Lamont]] (also later Chairman of Le Cercle) had been UK [[Minister | + | The deal between [[BAE Systems]] and the [[Saudi Arabia]]n government appears to have been brokered by a range of [[deep state actors]], notably members (and later, [[Chairman of Le Cercle|chairmen]] of [[Le Cercle]]) - [[Jonathan Aitken]], who was convicted in this connection. The first stage of the deal was signed on 26 September, 1985, at which time [[Norman Lamont]] (also later Chairman of Le Cercle) had been UK [[Minister for Defence Procurement]] for less than a month.<ref>https://www.caat.org.uk/resources/countries/saudi-arabia/al-yamamah/pj5-39-heseltine-signs-ay.pdf</ref> |
Also involved were the Saudi Ambassador to the US, and son of the Saudi King, Prince [[Bandar bin Sultan]], as well as [[Wafic Saïd]] (who used [[Mark Thatcher]] as a channel to his mother, the [[UK Prime Minister]], [[Margaret Thatcher]]).<ref name=indy12m/> | Also involved were the Saudi Ambassador to the US, and son of the Saudi King, Prince [[Bandar bin Sultan]], as well as [[Wafic Saïd]] (who used [[Mark Thatcher]] as a channel to his mother, the [[UK Prime Minister]], [[Margaret Thatcher]]).<ref name=indy12m/> | ||
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===UK Investigations=== | ===UK Investigations=== | ||
| − | [[Cercle]] member (later chairman) and UK [[Defense Procurement | + | [[Cercle]] member (later chairman) and UK [[Minister for Defense Procurement]], [[Jonathan Aitken]] played a key role in setting up Al-Yamamah II. He was imprisoned in 1993 for letting the Saudis pick up his tab at the Paris Ritz.<ref name=pm/> |
====Mark Thatcher's role==== | ====Mark Thatcher's role==== | ||
In [[1994]] [[Tam Dalyell]] charged that [[Mark Thatcher]] collected a £12 million commission from the deal. The government did not confirm or deny it, but the [[authorities]] declined to investigate.<ref name=indy12m>http://www.independent.co.uk/news/mark-thatcher-accused-sources-say-he-got-12m-pounds-from-arms-deal-signed-by-his-mother-1441851.html</ref> | In [[1994]] [[Tam Dalyell]] charged that [[Mark Thatcher]] collected a £12 million commission from the deal. The government did not confirm or deny it, but the [[authorities]] declined to investigate.<ref name=indy12m>http://www.independent.co.uk/news/mark-thatcher-accused-sources-say-he-got-12m-pounds-from-arms-deal-signed-by-his-mother-1441851.html</ref> | ||
| − | ==== | + | ====SFO Investigation==== |
| − | A 2004 UK investigation by the [[Serious Fraud Office]] was stopped towards the end of 2006 just as Swiss banks were preparing to release details of the accounts held by middle men in the deal. In 2006 [[Saudi Arabia]] stated that they would stop supplying the [[UK]] with intelligence about [[al-Qaida]] [[terrorist]]s if the investigation was continued, and were given two weeks to shut it down as SFO investigators were that they faced "another [[7/7]]" and the loss of "British lives on British streets" if they carried on. | + | A November 2004 UK investigation by the [[Serious Fraud Office]] was stopped towards the end of 2006 just as Swiss banks were preparing to release details of the accounts held by middle men in the deal. In 2006 [[Saudi Arabia]] stated that they would stop supplying the [[UK]] with intelligence about [[al-Qaida]] [[terrorist]]s if the investigation was continued, and were given two weeks to shut it down as SFO investigators were that they faced "another [[7/7]]" and the loss of "British lives on British streets" if they carried on. |
| − | [[Tony Blair]] wrote a "secret and personal" letter to the [[Attorney General]], [[Peter Goldsmith]] and the investigation was stopped.<ref name=pm/><ref name=guard2010>http://www.theguardian.com/world/2010/feb/05/bae-saudi-yamamah-deal-background</ref> | + | [[Tony Blair]] wrote a "secret and personal" letter to the [[Attorney General]], [[Peter Goldsmith]] and the investigation was stopped.<ref name=pm/><ref name=guard2010>http://www.theguardian.com/world/2010/feb/05/bae-saudi-yamamah-deal-background</ref><ref name=tel21>http://www.telegraph.co.uk/news/uknews/1553913/Row-that-stretches-back-21-years.html</ref> |
===US investigation=== | ===US investigation=== | ||
Revision as of 09:28, 15 May 2015
| Date | September 1985 - August 2006 |
|---|---|
| Interest of | Savoy Mafia |
| Description | A complex series of multi billion dollar arms for oil deals set up under the government of Margaret Thatcher, involving a bunch of deep state arms dealers, and her son - who earned £12 million. The total fines have been in the hundreds of millions, while profits and kickbacks are counted in billions. |
It was reported in the British press and later confirmed that the British government took a 2 percent fee from the Al-Yamamah accounts, which amounts to close to $1.6 billion over the life of the 20-plus year contract. [1]
Contents
The Deal
The Deal had 3 main tranches:
- Al-Yamamah I, 1985, signed by Michael Heseltine (Defence Secretary), worth between £40 billion to £50 billion, involving 72 Tornado planes, 30 Hawk trainer jets and 30 other trainer planes[2]
- Al-Yamamah II, 1993, for another 48 Tornado fighter jets
- Al-Yamamah III, 2005, 72 Eurofighter Typhoons for up to £10bn[3]
The deal included an insurance for BAE Systems so that the UK government would pay in case the Saudi Arabian government collapse and was unable to pay its debts.[4]
Origins
The deal between BAE Systems and the Saudi Arabian government appears to have been brokered by a range of deep state actors, notably members (and later, chairmen of Le Cercle) - Jonathan Aitken, who was convicted in this connection. The first stage of the deal was signed on 26 September, 1985, at which time Norman Lamont (also later Chairman of Le Cercle) had been UK Minister for Defence Procurement for less than a month.[5]
Also involved were the Saudi Ambassador to the US, and son of the Saudi King, Prince Bandar bin Sultan, as well as Wafic Saïd (who used Mark Thatcher as a channel to his mother, the UK Prime Minister, Margaret Thatcher).[6]
Investigations
An audit of the Al-Yamamah account at the British Ministry of Defence was conducted by the U.K. government under Sir John Bourn[6] in 1992, but was considered so secret that even members of the Public Accounts Committee were not allowed to see it, after Robert Sheldon has talks with .[7] Before its ascendancy to power, the Labour government promised to publish this report, but never did.[8]
Charged with running a slush fund, BAE Systems' chief executive Mike Turner didn't deny the charge. At a press conference following the revelations, he stated, "They are old allegations and they are old hat. They are history." Turner added, "Everything we do is legal and that is all I am prepared to say. Whatever the law is, we are legal."[8]
Legal proceedings
Different jurisdictions have tried to apply different laws, with varying success.
UK Investigations
Cercle member (later chairman) and UK Minister for Defense Procurement, Jonathan Aitken played a key role in setting up Al-Yamamah II. He was imprisoned in 1993 for letting the Saudis pick up his tab at the Paris Ritz.[8]
Mark Thatcher's role
In 1994 Tam Dalyell charged that Mark Thatcher collected a £12 million commission from the deal. The government did not confirm or deny it, but the authorities declined to investigate.[6]
SFO Investigation
A November 2004 UK investigation by the Serious Fraud Office was stopped towards the end of 2006 just as Swiss banks were preparing to release details of the accounts held by middle men in the deal. In 2006 Saudi Arabia stated that they would stop supplying the UK with intelligence about al-Qaida terrorists if the investigation was continued, and were given two weeks to shut it down as SFO investigators were that they faced "another 7/7" and the loss of "British lives on British streets" if they carried on. Tony Blair wrote a "secret and personal" letter to the Attorney General, Peter Goldsmith and the investigation was stopped.[8][9][2]
US investigation
The US Justice Department decided to launch its own investigation since the payments had been channelled through a US bank in Washington.[9] By 2009, Prince Bandar bin Sultan, (Saudi ambassador to the US for 20 years, later to become Director of the Saudi Intelligence agency) had hired Louis Freeh (former FBI Director) to represent him on legal matters surrounding the deal.[10]
In 2010, BAE Systems pled guilty to a United States court, to charges of false accounting and making misleading statements in connection with the sales.[11]
Related Document
| Title | Type | Publication date | Author(s) | Description |
|---|---|---|---|---|
| Document:Closing the Stable Door | webpage | 6 March 2007 | Richard Donkin |
- ↑ http://www.theguardian.com/world/2010/feb/05/bae-saudi-yamamah-deal-background
- ↑ a b http://www.telegraph.co.uk/news/uknews/1553913/Row-that-stretches-back-21-years.html
- ↑ http://www.theguardian.com/world/2007/jun/07/bae15
- ↑ http://www.guardian.co.uk/baefiles/story/0,,2090505,00.html
- ↑ https://www.caat.org.uk/resources/countries/saudi-arabia/al-yamamah/pj5-39-heseltine-signs-ay.pdf
- ↑ a b c http://www.independent.co.uk/news/mark-thatcher-accused-sources-say-he-got-12m-pounds-from-arms-deal-signed-by-his-mother-1441851.html
- ↑ http://www.telegraph.co.uk/finance/2941537/Twenty-years-of-smokescreen-over-Saudi-deal.html
- ↑ a b c d http://www.propagandamatrix.com/121103baedirtydealings.html
- ↑ a b http://www.theguardian.com/world/2010/feb/05/bae-saudi-yamamah-deal-background
- ↑ http://www.pbs.org/frontlineworld/stories/bribe/2009/04/louis-freeh-interview.html
- ↑
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