BAE Corruption Probe Widens

Swiss authorities have expanded their investigations into allegations of corruption surrounding arms deals by the British aerospace firm BAE Systems.>> Three criminal investigations are now underway into possible money laundering linked to the firm, Jeannette Balmer of the federal prosecutor's office said on Wednesday.>> Prosecutors launched an initial probe in 2007 over allegations that BAE used Swiss bank accounts to pay 60 million (SFr121.8 million) in bribes to officials from Saudi Arabia in return for contracts.>> An earlier probe by Britain's Serious Fraud Office was halted in 2006 after the Saudi Arabian government threatened to withhold cooperation on critical issues of anti-terrorism. A London High Court ruling found the move was an "abject surrender" to "blatant threats" and the British House of Lords is currently considering whether the investigation should have continued.>> Balmer said Swiss prosecutors were alerted to possible wrongdoing on BAE's part by the Swiss money-laundering authority. She declined to comment on what prompted the authorities to open the two additional investigations.>> BAE has always said it acted lawfully.>> -ends->