§ Ms Dari TaylorTo ask the Secretary of State for Defence if he will make a statement about negotiations with the companies involved in the payment of commissions to Gordon Foxley relating to defence contracts. [20507]
§ Mr. SpellarOn 31 July 1997,Official Report, columns 466–67, I announced that a settlement had been reached with the second of the three companies involved in the Foxley case, Junghans GmbH of Germany, under which the company paid an agreed sum in redress to the Ministry of Defence. The company became eligible from that time to be considered for Ministry of Defence orders, but normal commercial relations were not to be resumed for some months while the operation of the agreement was monitored. I am pleased to report that the company has continued to co-operate fully with the MOD since that date, including provision of full access to their relevant accounting records, and has satisfied us in respect of its management arrangements and approach to future contracts. We have therefore decided to resume normal commercial relations with the company.
MOD officials have had positive discussions with Simmel, the other company involved in the Foxley case, against whom proceedings are still in train.