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BAE chief exec subpoenaed in US

19/05/2008

The chief executive of BAE has been subpoenaed in the US over bribery allegations linked to a deal made with Saudi Arabia in the 1980s.

The subpoena – a court order to give testimony – was served on BAE chief executive Mike Turner as he stepped off the plane at George Bush International Airport in Houston, Texas.

Also served was BAE non-executive director Sir Nigel Rudd, who was also with Mr Turner on the flight.

A BAE spokesperson has told Reuters in London that neither was prevented from entering the US, and Mr Turner has already been allowed to return home.

Reports in the press also said that documents from Mr Turner's briefcase were copied and electronic devices – possible including laptops and Blackberries – were examined before the pair were allowed to continue on their trip.

The subpoenas are part of a Department of Justice investigation into an arms deal between Britain's biggest military contractor and the government of Saudi Arabia, which has been linked to allegations of bribery.

In the UK, a probe by the Serious Fraud Office was dropped in December 2006 when then-prime minister Tony Blair said it could endanger national security.

The following June, the US government began their own investigation into the claims that the deal may have broken anti-bribery laws.

In the UK in April, a court ruled that the decision to drop the inquiry was unlawful, renewing pressure to re-open the case in this country.

Ministers have refused to accept this judgement, however, and the law lords are now to rule on the case.