Ethics Newsline®

“Coming straight after a threat from the Saudis to withdraw from future business, this completely undermines the U.K.’s reputation on good governance. How on earth can we lecture the developing world on good governance when we interfere with and block a criminal investigation in this way?”

– Norman Lamb, a member of the U.K. Parliament, criticizing the dropping of a criminal investigation into alleged bribery between British defense firm BAE and the government of Saudi Arabia. The investigation was shut down last week at the request of prime minister Tony Blair and other government officials who concluded that “the wider public interest” “outweighed the need to maintain the rule of law,” reports the Guardian.

The forced shutdown of the Serious Fraud Office probe into alleged BAE bribery comes shortly after the Saudi government reportedly issued a 10-day ultimatum, warning that it would cancel a lucrative BAE contract if the investigation was not stopped.

While BAE’s stock prime had plummeted 10 percent in the last month over concerns about the criminal probe, it shot back up upon last week’s news.

Tony Blair last week denied that economic interests played a part in his push to abort the probe. Instead he implied that pursuing the criminal matter might cost Britain the cooperation of the Saudi government. “Our relationship with Saudi Arabia is vitally important for our country in terms of counterterrorism, in terms of the broader Middle East, in terms of helping in respect of Israel and Palestine. That strategic interest comes first,” Blair said, according to the BBC.

While the Saudi government no longer needs to worry about the criminal investigation, BAE is not yet in the clear. Investigations have not been blocked into alleged BAE wrongdoing involving business dealings with Chile, the Czech Republic, Romania, South Africa, and Tanzania, notes the Guardian.