BAE to Pay $400 Million to Settle DOJ Criminal Charges in Tanzanian Transaction
BAE Systems PLC1 and the Justice Department have announced that the BAES has pleaded guilty and settled criminal charges of conspiring to make false statements about its Foreign Corrupt Practices Act (FCPA) compliance program, and to violate the Arms Export Control Act (AECA) and the International Traffic in Arms REgulations (ITAR).
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(BAES has also reached settlement on bribery allegations with the United Kingdom's Serious Fraud Office in connection with this case.)
BAE to Pay $400 Million to DOJ to Settle False Statement Charges
Under the agreement with the Justice Department, which requires court approval, the BAES will plead guilty to one charge of conspiring to make false statements to the U.S. Government in connection with the sale of radar equipment for air traffic control in Tanzania in 1999 and related to applications for arms export licenses, as required by the AECA and ITAR.
BAE will pay a fine of $400 million and make additional commitments concerning its ongoing compliance.
BAE to Pay 30 Million to UK Fraud Office to Settle Bribery Charges
Under the agreement with the UK's Serious Fraud Office, BAES will 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.
BAES will pay an agreed penalty of 30 million comprising a fine to be determined by the UK courts with the balance paid as a charitable payment for the benefit of Tanzania.
1BAE Systems PLC (BAES) is a global defense, security and aerospace company; and is Europe's largest defense contractor and the fourth biggest military supplier to the U.S. government.
BAES press release is available here.