BAE to pay £30m accounting fine in SFO deal

BAE Systems will pay £30m and admit to failing to keep reasonably accurate accounting records in relation to its activities in Tanzania, in a ground-breaking deal with the Serious Fraud Office.

BAE will admit to the charge in the Crown court, and the £30m will comprise a financial order determined by the judge, with the balance paid as an ex gratia payment for the benefit of the people of Tanzania.

BAE will also pay $400m (£256m) after pleading guilty to a charge of conspiring to make false statements to the US government.

"I am very pleased with the global outcome achieved collaboratively with the DoJ. This is a first and it brings a pragmatic end to a long-running and wide-ranging investigation," said SFO director Richard Alderman.

"I would like to thank the Ministry of Defence Police for their support and contribution. Furthermore, I’d also like to acknowledge the efforts made by BAE to conclude this matter and I welcome its declared commitment to high ethical standards”.