EADS Bribed Saudi Officials With Luxury Cars, Jewelry: Former Employee

A former EADS employee has accused his colleagues from the company’s UK unit of using middlemen to bribe Saudi Arabian officials with luxury cars, jewelry and briefcases of cash in an effort to win a $3.3bn communications contract five years ago. Britain’s Serious Fraud Office (SFO) has launched a criminal investigation to probe allegations that the French defense giant offered bribes to the royal family and military. In 2007, then financial controller of EADS’ GPT Special Project Management, Mike Paterson, informed his superiors about the transactions. Paterson detailed unaccounted payments totaling £11.5m (US$18m) to the Cayman Islands bank accounts of Simec International and Duranton International as well as the gift of four cars to members of Saudi Arabia’s royal family and military and a £278,000 payment for the rental of a villa owned by a Saudi National Guard general, The Financial Times reported. “We have been informed by the UK’s Serious Fraud Office that it has begun a formal investigation in connection with aspects of the business of GPT Special Project Management Limited in Saudi Arabia which is a local subsidiary of the EADS Group conducting business exclusively for the UK MoD,” EADS said in an emailed statement. We will continue to fully and constructively engage with the SFO but in view of the investigation will not be commenting further,” it added. In 2006, under pressure from then Prime Minister Tony Blair the SFO halted an investigation into another BAE-Saudi Arabia deal.