BAE Systems to pay out £30m to Tanzania

BAE Systems will pay out nearly £30m to educate children in Tanzania, after admitting to accounting offences in a deal to sell the African nation an air traffic control system.

BAE will pay the money as part of an agreement reached with the UK’s Serious Fraud Office (SFO).

On December 21, 2010, BAE admitted at Southwark Crown Court that it had failed to keep adequate accounting records in relation to a defence contract for the supply of an air traffic control system to the government of Tanzania.

BAE at the time made a settlement with the SFO, whereby the firm agreed to pay an ex-gratia payment to benefit the people of the African country.

The SFO, the Government of Tanzania, BAE Systems and the Department for International Development (DFID) have now signed a Memorandum of Understanding enabling the payment of £29.5 million plus accrued interest to be paid by BAE Systems for educational projects.

Commenting on the agreement, the Director of the Serious Fraud Office, Richard Alderman, said: “This agreement is a first for the SFO which piloted it through the UK legal system. It provides a satisfactory outcome for all concerned but most of all for the Tanzanian people and I am personally delighted that SFO staff were able to achieve this.”

This entry was posted in Corporate, News.

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