Defence giant pays £29.5m to end row over radar sale

BAE Systems has agreed to pay £29.5 million immediately to the government of Tanzania to bring an end to a long-running row over the sale of a radar and air traffic control system to the impoverished African country, it has been revealed.

The defence giant had faced accusations from MPs of dragging its feet over the payment, which was agreed 18 months ago.

In a parliamentary hearing in July, members of the Commons international development committee accused BAE of “procrastinating” and said its proposal to make the payment in a series of tranches was a “sham”.

Yesterday, the committee released a letter from BAE chairman Dick Olver, in which he said the company was ready to send a banker’s draft for the full sum to the Tanzanian government as soon as it had approval from the Department for International Development.

Committee chairman Malcolm Bruce said: “We’re pleased that BAE Systems has agreed to pay the money it owes to the people of Tanzania straight away.

“This is the right decision for the reputation of British business, for BAE Systems and for the children of Tanzania and their teachers, who will benefit from the additional textbooks, desks, teachers’ houses and other education materials that this payment will go towards.”