Anti-corruption campaigners have been left outraged by a Law Lords ruling that has vindicated the decision by the Serious Fraud Office (SFO) to terminate its investigations into alleged corrupt arms deals between BAE systems and Saudi Arabia. Sue Hawley, of anti-corruption pressure group Corner House, described her dismay upon hearing the verdict: “It is a very disappointing and very conservative judgement. If the courts are not prepared to hold the government to account then who will do that job?”
The Law Lord’s enquiry centred on the decision by the then head of the SFO Robert Wardle, to end an investigation into BAE systems dealings with Saudi Arabia, in what was known as the Al Yamamah deals. Originally a bilateral “Arms for Oil” agreement set up under the Conservatives in 1985, Al Yamamah represents the largest series of export agreements in British history. However allegations of bribery of Saudi Officials, and the existence of a £60 million “slush fund” began to surface in 2004, prompting a full investigation by the SFO in November that year.
In 2006, a full two years into the investigation, the SFO halted its enquires, citing pressure from political figures such as the attorney general Lord Goldsmith, and the then Prime Minister Tony Blair. The latter asserted that further investigations would harm British commercial interests and, moreover, jeopardise public safety with regards to continued Saudi cooperation over terrorism. The collapse of the SFO investigation led to an appeal from the high court, with Lord Justices Moses and Sullivan condemning what they perceived as closure under duress.
Perversely The Law Lords voted overwhelmingly to overturn their colleagues in the high court, on the basis that Wardle had acted legitimately and within the interests of national security. This is in stark contrast to supporters of the investigation who claim that Whitehall was bullied by a Saudi regime infuriated by the prospect of being the subject of a corruption enquiry.
Most vocal was Liberal Democrat leader Nick Clegg, who angrily dismissed the Lord’s decision: “The rule of law in Britain now seems to depend on the whims of foreign governments…there must be an independent inquiry into its (the government) role in dropping the decision to prosecute”
Tim Tonkin, 
Law Lords
Serious Fraud Office
BAE Systems
