Britain's BAE Systems has accepted guilt and reached a total settlement agreement of almost US$500 million with the US Justice Department and the British Serious Fraud Office (SFO).
In the US, BAE will plead guilty to false accounting relating to bribery allegations made over a large arms deal with Saudi Arabia over 20 years ago. BAE Systems will pay US$500 million to settle this case. The penalty is one of the largest ever extracted by the US Department of Justice over corruption allegations.
In the UK case, BAE will plead guilty regarding overpriced military radar sold to Tanzania.
"I am very pleased with the global outcome achieved," said SFO Director, Richard Alberman in The Guardian. "This is a first and it brings a pragmatic end to a long running and wide ranging investigation."
In a statement, BAE said that it accepted full responsibility for its conduct.
"It allows us to draw a very heavy line under the legacy of very historical issues," The Australian newspaper quoted BAE Chairman, Dick Olver, as saying. He stressed that the transactions had occurred a decade ago in the US.
Meanwhile, investors were relieved that despite the guilty plea, BAE would still be able to continue bidding for government projects. The company's shares closed 1.6 percent up on February 5.
Anti-corruption campaigners said that BAE got off the hook too lightly, with some analysts agreeing with them.
"While it's a substantial figure, it's less than the worst case scenario," The Guardian quoted Tina Cook at brokerage firm Charles Stanley as saying. Ms Cook said that initial media reports had suggested a settlement around US$1.5 billion.
BAE Systems said that since the incidents, the company had enhanced its compliance policies and procedures.
