DEFENCE: Investigation into fraudulent Saudi contracts abandoned

The Serious Fraud Office has announced that it is abandoning its two year investigation into allegations of a slush fund to secure Saudi defence contracts. The Attorney General Lord Golsmith said the decision had been made in the 'national interest' as continuing with it would cause 'serious damage' to UK-Saudi relations. The inquiry had examined a multi-million pound arms deal BAE Systems had made with Al Yamanah. Had it continued, a deal to build fighter jets could collapse, putting thousands of British jobs at risk. The Attorney General insisted commercial interests had not been part of his decision.

ITN Source | December 14, 2006