American interest in BAE inquiry highly significant - Cable

12.00.00am BST (GMT +0100) Tue 8th May 2007

Reports today that the Serious Fraud Office has been discussing the BAE case with the US Department of Justice had been confirmed in a parliamentary answer to Liberal Democrat Deputy Leader, Vince Cable MP on March 1st.

Commenting, Vince Cable said:

"It is highly significant that the Americans are sniffing around this inquiry, particularly as we know the US Government has protested to the British Government about its unwillingness to prosecute.

"If it is true that the Department of Justice are taking seriously suggestions that offences may have been committed in American jurisdiction, then this could be a major escalation. It would also put BAE Systems in some jeopardy, since a third of its defence sales are to the US and it envisages major expansion there.

"With all these rumours swilling around it becomes all the more important that the British Government should be completely transparent in its dealings with the company. If there has been any bribery or corruption in relation to Saudi Arabia and other contracts, it must be pursued.

"It is simply not sustainable for some companies to be required to clean up their acts, while another enjoys more favorable treatment."