Court fines BAE £500,000 over accounting records

BAE SYSTEMS HAS BEEN FINED £500,000 by Southwark Crown Court for failing to keep accurate accounting records of payments made to an adviser in Tanzania.

The court said it was under pressure to keep the fine to a minimum as the defence systems company had already agreed a deal with the Serious Fraud Office (SFO), reported the BBC.

BAE agreed a £30m settlement with the SFO in February, admitting fraud. However, as part of the deal any fines incurred in court would be deducted from the £30m that had been ring-fenced for the people of Tanzania.

Residing judge Mr Justice Bean said: “The structure of this settlement agreement places moral pressure on the court to keep the fine to a minimum so that the reparation is kept at a maximum.”

BAE will also pay $400m (£258.6m) to the US after pleading guilty to conspiring to make false statements.

Other costs incurred by the business through the court action amounted to £225,000.


Related reading

tax dictionary