http://news.scotsman.com/index.cfm?id=1908982006
SNP demands EU probe on halting of Saudi arms inquiry BRIAN BRADY WESTMINSTER EDITOR SCOTTISH Nationalists will today attempt to deepen the row over the abandoned fraud inquiry into a multi-billion-pound Saudi arms deal by calling on European investigators to enter the controversy. SNP Europe spokesman Alyn Smith has referred the government's decision to drop the Serious Fraud Office (SFO) inquiry into the Al Yamamah arms deal to the European Commission. The dramatic move could drag one of Tony Blair's closest confidants into the controversy. The MEP has written to European trade commissioner Peter Mandelson and justice commissioner Franco Frattini, requesting that they investigate the decision. The audacious response mirrors SNP MP Angus Macneil's decision to call in Scotland Yard to investigate claims that Blair had offered honours in return for financial assistance to the Labour Party. That unprecedented move sparked the "cash-for-honours" investigation, one of the most embarrassing and perilous challenges to threaten the Prime Minister during almost a decade in power. The attempt to call in external scrutiny of the SFO decision comes as the head of one of Britain's biggest pension funds warned that it could threaten the UK's reputation as one of the world's most important financial centres. Attorney General Lord Goldsmith announced earlier this month that he was "discontinuing" the probe into arms firm BAE Systems in relation to the Al Yamamah contract, claiming it was in the interests of safeguarding "national and international security". The surprise announcement came amid rumours that the Saudis had threatened to cancel a £40bn contract to buy 72 Eurofighter Typhoon jets > from BAE if the investigation continued. But Smith claimed it could wreak untold damage on Britain's relations with allies closer to home. He said: "The decision of the Serious Fraud Office, however it was taken, looks bad and will undoubtedly have a negative impact on our relationship with other countries in the EU - especially if it was taken to stop France getting new contracts from Saudi Arabia. "Calling this investigation off with no conclusions, no charges or even any exonerations goes against the rule of law and the standards of justice Europe expects of all member states. "We all know Commissioner Mandelson is a friend of Mr Blair's, but he's in the EU now and he must act accordingly." The SFO had spent over two years investigating claims that BAE Systems had paid bribes to secure the arms deal with Saudi Arabia in the 1980s - allegations that the company has consistently denied. Although foreign governments, including the Americans, had been complaining about reports of corruption for several years, the SFO finally began its investigation in July 2004 after detectives were shown evidence suggesting that BAE used a £60m "slush fund" to buy gifts for members of Saudi Arabia's royal family in order to secure contracts. But the decision provoked fury in Saudi Arabia, where officials were hugely concerned about the impact on individuals who might be named during the course of the inquiries. Blair said he was satisfied the decision to drop the probe was justified in the light of concerns about potential damage to Britain's relations with Saudi Arabia, one of the most valuable Middle Eastern allies in the international war on terror. But he has faced mounting pressure since the decision was announced, as opponents systematically attacked the excuses offered by a series of ministers. The UK's biggest pension fund added its voice to City criticisms of the decision to halt the inquiry, warning of the potential impact on international trade. Mark Anson, chief executive of Hermes, which manages the BT pension scheme, wrote to Blair saying the decision had threatened the UK's reputation as a leading financial centre and would have a high long-term cost for business and markets. +++ -------------------------- Want to discuss this topic? Head on over to our discussion list, [EMAIL PROTECTED] -------------------------- Brooks Isoldi, editor [EMAIL PROTECTED] http://www.intellnet.org Post message: osint@yahoogroups.com Subscribe: [EMAIL PROTECTED] Unsubscribe: [EMAIL PROTECTED] *** FAIR USE NOTICE. This message contains copyrighted material whose use has not been specifically authorized by the copyright owner. OSINT, as a part of The Intelligence Network, is making it available without profit to OSINT YahooGroups members who have expressed a prior interest in receiving the included information in their efforts to advance the understanding of intelligence and law enforcement organizations, their activities, methods, techniques, human rights, civil liberties, social justice and other intelligence related issues, for non-profit research and educational purposes only. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/osint/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/osint/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/