Two anti-corruption groups have lost their court battle to delay approval of a controversial plea bargain between the U.K. Serious Fraud Office and arms company BAE Systems.
The defeat for protest groups Corner House and Campaign Against Arms Trade clears the way for BAE to plead guilty to charges it agreed upon with the SFO last month. But that won’t happen yet, as the campaigners have been given time to consider an appeal.
Earlier this month they requested a Judicial Review of the SFO’s actions in reaching the plea deal; the courts temporarily halted completion of the deal while deciding whether to grant that request.
The courts have now decided not to allow a review. The two groups are taking legal advice on whether to appeal.
The SFO announced a settlement with BAE last month that is supposed to end its investigation into allegations that BAE used bribery and corruption to secure arms deals worth billions of dollars in several countries. The company agreed to a charge of poor recordkeeping and a fine of £30 million ($45 million).
It also reached a linked settlement with the U.S. Department of Justice and has since pleaded guilty to a charge of conspiring to make false statements to the U.S. government and pay a fine of $400 million.
The campaign groups claimed that the SFO ignored its own guidance on plea discussions and should have sought tougher penalties against the company.
Kaye Stearman, spokesperson for CAAT, said: “We are obviously disappointed by the Judge's decision to refuse permission. It implies that the law allows a giant company to pay a small financial penalty for "accounting irregularities" rather than be charged and tried in open court on more serious criminal charges. The law should apply to all without fear, favor, or prejudice.”
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