[obviously the Feds would deny that WA is bribing
Boeing.........Governments can't bribe by definition]


US accuses British over arms deal bribery bid

Rob Evans and Ian Traynor in Prague
Thursday June 12, 2003
The Guardian

The US has accused Britain's biggest weapons company, BAE Systems, and its
British government sponsor of "corrupt practice" over a Czech arms deal,
according to documents obtained by the Guardian.

The American government made the accusation after receiving reports from
the CIA and rival firms. A Guardian investigation in Prague has obtained
first-hand evidence confirming bribery attempts on behalf of the BAE deal.

The bribery of foreigners is now a criminal offence under British law.
However, the Ministry of Defence's permanent secretary, Sir Kevin Tebbit,
to whom Washington's accusations were made personally last year, failed to
call in the police to investigate the allegations.

Instead, Sir Kevin claimed in a letter to the US state department
assistant secretary, Anthony Wayne, that the complaint had been
investigated and was groundless. The MoD told the Guardian this week that
the allegation "has never been substantiated by any evidence whatsoever".

In Prague, the allegations are well-documented. The bribery attempts to
promote the BAE deal were confirmed by the Czech police, although BAE
flatly denies authorising any such attempt.

Two senior Czech politicians separately claimed they were offered bribes
last summer in an attempt to prevent them voting against the £1bn deal to
buy Gripen fighter jets from a BAE-Saab joint venture.

Those attempts were directed at opposition politicians, but it is also
claimed in Prague that larger sums of money went to people linked to
politicians in the governing Social Democrat coalition. "I am convinced
that money went to the Social Democrats," a senior Czech government
official said.

BAE admits that it offered corporate financial favours to the head of a
Czech television station which it wanted to support its campaign in 2001.
British laws banning corrupt acts abroad only came into force the
following year.

Prague sources say BAE Systems had a £1.5m annual lobbying budget to
influence Czech opinion.

Four rival companies, two of them American, pulled out of the bidding in
May 2001 in a coordinated protest against what they alleged was a rigged
deal in favour of BAE.

The disclosure of the US confrontation with Britain is particularly
serious because both Tony Blair and the defence secretary, Geoff Hoon,
flew to Prague and lobbied the Czechs unsuccessfully on BAE's behalf. The
deal is currently shelved.

An email obtained under the US Freedom of Information Act in the course of
a major Guardian investigation into British arms sales describes the clash
in July last year between Sir Kevin and Mr Wayne, a senior state
department official in charge of US-foreign business deals.

After Mr Wayne made his accusations of bribery, Sir Kevin wrote rejecting
them. On September 6, a commerce department official, Thomas Barlow,
emailed a colleague, William Denk, telling him of Sir Kevin's "sharp
response".

The letter expresses surprise at being "confronted... with repeated but
unsubstantiated allegations of corrupt practice by BAE Systems in the
dealings with the Czech Republic... [and that he] is satisfied that all
reasonable steps have been taken to investigate US claims... [and that]
unless you have any information to provide in the form of firm evidence,
we need to draw a line under this subject".

The MoD could not tell the Guardian of any steps Sir Kevin took to
investigate the claims. It said: "If anyone believes they have evidence to
support this allegation, they should present it to the police. If MoD had
received any such evidence we would certainly have reported it to the
police. We have not."

BAE said: "BAE Systems did not pay bribes in the Czech Republic in order
to influence any decisions in Gripen's favour. Nor did BAE Systems ever
authorise or direct anyone to pay bribes to that end."

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