§ Norman LambTo ask the Secretary of State for Defence if he will make a statement on the(a) role and (b) activities of his Department's Saudi Arabian project office. [132896]
§ Mr. Ingram[holding answer 20 October 2003]: The Director General of the Saudi Armed Forces Project (DGSAP) and his staff are responsible for fulfilling the Ministry of Defence's obligations under Government-to-Government arrangements with Saudi Arabia covering the supply of military aircraft, naval vessels, weapons and associated support services, commonly known as the Al Yamamah Programme (AY). In this role. DGSAP officials are involved in the negotiation of the AY contracts, the monitoring of the programme, prime contractor performance in respect of the delivery of goods and services to the Saudi Armed Forces, and, when satisfied, the endorsement of claims made in accordance with the terms of the AY contracts for 437W payment by the Saudi Government. In pursuit of these activities DGSAP staff are based both in the United Kingdom and Saudi Arabia.
§ Harry CohenTo ask the Secretary of State for Defence (1) what reports he received regarding improper practices in relation to BAE Systems'(a) operations in, and (b) contracts with, Saudi Arabia; and if he will make a statement; [133098]
(2) what discussions he had with the Serious Fraud Office in relation to BAE Systems'(a) operations in, and (b) contracts with, Saudi Arabia; and if he will make a statement; [133099]
§ Norman LambTo ask the Secretary of State for Defence (1) when the Permanent Secretary or other officials(a) first received and(b) first read the papers sent by the Serious Fraud Office on 8 March 2001 in respect of allegations against British Aerospace/BAE Systems and Robert Lee International; [132916]
(2) whether the contents of the papers sent by the Serious Fraud Office to the Permanent Secretary on 8 March 2001 in respect of allegations against British Aerospace/BAE Systems and Robert Lee International were communicated in any way to the then Secretary of State or his successor; [132917]
(3) what investigations took place within his Department into the contents of the papers sent by the Serious Fraud Office to the Permanent Secretary on 8 March 2001 in respect of allegations against British Aerospace/BAE Systems and Robert Lee International; [132918]
(4) how many times(a) the Secretary of State,(b) his predecessors,(c) the Permanent Secretary and (d) other Ministry of Defence officials have met representatives of British Aerospace/BAE Systems to discuss issues relating to Saudi Arabia since May 1997. [132919]
§ Mr. IngramThe Serious Fraud Office (SFO) wrote to the Permanent Secretary of the Ministry of Defence in March 2001 about allegations of fraud in connection with a sub-contractor to BAE Systems. The SFO informed the Permanent Secretary that there was insufficient evidence to support a criminal investigation of the fraud allegations, but wished to bring it to his attention in case Government money might be involved. The Permanent Secretary established that the allegations were not of direct relevance to the Ministry of Defence, as they related to the role of a subcontractor (Robert Lee International) to BAE Systems, and Government money had not been involved. Having been informed, however, that the Chairman of BAE Systems was already aware of this matter, the Permanent Secretary raised it with the Chairman, in the context of the Government's robust anti-fraud policy, for any further inquiries he deemed appropriate.
Since the allegations of fraud were not a matter for the Ministry of Defence, it was not considered necessary to bring them to the attention of the Secretary of State. Ministers and officials at the Ministry of Defence have discussed issues related to Saudi Arabia with representatives of BAE Systems on numerous occasions since 1997.