Fraud chief faces legal challenge over BAE deal

SERIOUS Fraud Office director Richard Alderman faced a High Court challenge yesterday over his decision to agree a plea bargain with BAE Systems.

Two campaign groups, the Corner House and Campaign Against Arms Trade, have applied for an injunction to block the move and called for a judicial review.

They strongly criticised a negotiated settlement announced earlier this month that brought to an end years of legal wrangling and damaging allegations.

The Serious Fraud Office (SFO) agreed to drop claims of bribery if BAE admitted accounting offences linked to the sales to Tanzania and paid a 30 million fine.

Solicitor Jamie Beagent, of Leigh Day & Co, said papers have been lodged claiming Mr Alderman acted unlawfully.

He said: "The plea bargain announced on 5 February has attracted a great deal of criticism.

"The fine BAE has agreed to does not reflect the seriousness of the many allegations it faced.

"The SFO's decision seems entirely at odds with its own prosecutorial guidance and our clients will be asking the courts to review the legality of that decision."

The SFO has been investigating allegations of bribery and corruption by BAE for more than six years.

In 2006, officials dropped an inquiry into bribery allegations relating to the Saudi Arabian royal family.