BAE learning

News in Brief

In early March, it became apparent that BAE Systems, Britain's biggest military manufacturer, was about to be punished by the US state department after the arms company's admission last year that it conspired to defraud the US and made false statements about its anti-bribery compliance programme. The guilty pleas, made to a US court, came as part of legal settlement with the US justice department on corruption-related allegations.
The admissions resolved conflicts with the justice department, but much to BAE's surprise they also triggered action by the state department, which is charged with ensuring that the US does not grant export licences to companies involved in corrupt or illegal practices.
BAE expects another fine and some form of debarment from the US military marketplace. In February, BAE warned that its income would fall by about 5% in 2011 as Western nations cut military spending.

Topics: Arms trade