MoD 'drawn into Saudi fraud inquiry'
15 August 2012
Officials at the Ministry of Defence are to be questioned as part of an on-going fraud investigation involving a British firm's dealings with Saudi Arabia's National Guard, it has been reported.
The MoD is said to have been the sole client of GPT Special Project Management, which was involved in a $3.3bn (£2bn) 10-year deal to provide satellite communications and intranet services to the Saudi National Guard. The Ministry is said to have acted as the sole point of liaison between GPT, a subsidiary of aerospace giant EADS, and the Saudi National Guard.
The allegations against GPT emerged during the employment tribunal of a former British army officer and GPT employee.
Lieutenant Colonel Ian Foxley claimed that luxury cars, cash and jewellery were given to members of the Saudi military and royal family in relation to the £2bn contract between 2007 and 2009, while it was also alleged that some £11.5m had been transferred to offshore bank accounts.
Foxley claimed he had been fired after raising concerns over the payments.
The Serious Fraud Office confirmed it had opened a criminal investigation into "allegations concerning GPT and aspects of the conduct of their business in the Kingdom of Saudi Arabia". Both EADS and the MoD declined to comment.
HAVE YOUR SAY
15 August 2012
Foxley... there's a name to conjure with. Any relation to the infamous Gordon?
Good to see whistle-blowing still occurs, despite only lip service being paid to it (e.g. the MOD's fraud hotline - when I reported numerous false charges over many years for fuel by contractors, which must've added up to tens of thousands of pounds over the White Fleet Contract duration, the MOD police were not interested).
AlMiles - Bristol, UK