Linklaters and A&O take headline roles as BAE settles bribery case

Linklaters and Allen & Overy (A&O) have taken key roles steering BAE Systems through the high-profile corruption case that saw the defence group on Friday (5 February) agree to pay fines totalling more than $400m (£250m).

BAE's agreement with the US Department of Justice (DoJ) and the UK Serious Fraud Office (SFO) settles a six-year investigation into the company's alleged corruption in arms deals.

Under the settlement BAE has agreed to pay a $400m fine in the US and plead guilty to one charge of conspiring to make false statements to the Government.

The US deal covers wrongdoing in Europe as well as BAE's arms contract with Saudi Arabia.

In the UK the company has agreed to pay £30m and plead guilty to one charge of breach of duty to keep accounting records in relation to payments made to a former marketing adviser in Tanzania. It is understood the settlement will bring to an end investigations into BAE's deals with South Africa, Romania and the Czech Republic.

It is expected that the settlement, which did not see BAE admit bribery, will allow the defence giant to continue bidding for future defence contracts in Europe and the US.

Linklaters US head Larry Byrne led a team advising BAE, primarily in connection with the settlement with the DoJ, while A&O litigation partners Jonathan Hitchin and Arnondo Chakrabarti advised BAE primarily on its settlement with the SFO.

The SFO announced in October that it was seeking to prosecute BAE for alleged overseas corruption involving contracts with countries including Tanzania, the Czech Republic, Romania and South Africa.

BAE chairman Dick Olver commented: "In connection with the sale of a radar system by the company to Tanzania in 1999, the company made commission payments to a marketing adviser and failed to accurately record such payments in its accounting records. The company failed to scrutinise these records adequately to ensure that they were reasonably accurate and permitted them to remain uncorrected. The company very much regrets and accepts full responsibility for these past shortcomings."

"In the years since the conduct referred to in these settlements occurred, the company has systematically enhanced its compliance policies and processes."

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