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BAE faces fresh kickbacks charge

Hasan Suroor

Torrent of allegations continues

LONDON: In a new revelation in the controversy over the BAE-Saudi Al-Yamamah defence contract, it has been alleged that the British arms company paid for the honeymoon of Prince Bandar bin Sultan's daughter from a "slush'' fund created to make secret payments in connection with the deal.

A former Saudi ambassador to the U.S. with close ties to the Bush family, Prince Bandar has been at the centre of allegations that he was paid "kickbacks'' for his role in facilitating the £43-billion deal in 1985 but he has strongly denied receiving any improper payments.

After claims by The Guardian and the BBC that he was paid up to £1billion over a period of 10 years, he dismissed the allegations as "grotesque in their absurdity'' claiming that the payments were paid into the accounts of the Saudi Ministry of Defence and Aviation and he did not benefit from them personally. He is reported to be "consulting'' his solicitors about the allegations.

The BAE Systems has also denied any wrongdoing and has appointed an independent ethics committee to shore up its reputation. The torrent of allegations, however, continue and on Sunday a British newspaper quoted the executive of a travel company as saying that he was "instructed'' by the BAE to "give Bandar's daughter and her husband the honeymoon of a lifetime at BAE's expense''.

According to The Sunday Times report, Prince Bandar's daughter Princess Reema and her husband enjoyed a "six-week honeymoon in luxury resorts in Singapore, Malaysia, Bali, Australia and Hawaii''. The payments, it claimed, were "authorised'' by a senior BAE executive.

The honeymoon was "paid for through a £60-million slush fund which the Serious Fraud Office believes was set up to encourage Saudi royals to continue with a £43-billion arms contract to supply Hawk and Tornado jets''.

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