chuwa_amani@yahoo.co.uk
Staff at Play out 24 7 accepting their Diplomatic Award at their head office in cleveland street(ABOVE)
BAE-SEROUS FRAUD OFFICE settlement questioned by judge - sentence postponed
By ayoub mzee -London
IN THE CROWN COURT AT SOUTHWARK BETWEEN Regina V BAE Systems PLC
BAE SYSTEM-the world’s largest defence business, engaged in development and delivery and support of advanced defence aerospace systems for Air ,land and Naval forces, which had pleaded guilty to one count of breaching its duty to keep accounting records contrary to sec 221 of the companies act 1985 .They had pleaded guilty to this offence on agreed factual basis pursuant to a written settlement (“the settlement agreement “) between the company and the serous Fraud office dated 16th February 2010 .This settlement agreement was reached having regard to the Attorney Generals guidelines on Plea Discussions in cases of serous or complex cases. The offence before the judge concerns how the accounting for the contract for the provision of a Radar Defence System to the Tanzania Government. According to the contract –in November 1992 the Tanzania Government invited tenders to supply a new air traffic control system at Dar es salaam INTERNATIONAL Airport. Four companies including SPS, bid for the tender in November 1993.In October - November 1997 BAE acquired SPS ..On 10 September 1999, a new contract was signed between BAEDS and the Government. The price was $39.97 million.
Between September 1995 and September 1996 BAE executives were actively looking for ways to achieve maximum confidentiality in regard to the names of , and payments to ,advisers, Mr Vithlani being one of such advisers to protect them in case they wished to pass on money to a third party but cannot declare this to authorities or protect them from general embarrassment or possible press interest due to a large fee or sensitive subject .And according to BAE lawyers , this was a legitimate commercial aim or avoid Tax implications. These considerations led to the incorporation of Red Diamonds Trading LTD in February 1998.Red Diamond was a British Virgin Island company , so instructed that it could be extremely difficult for an enquiring outsider to pierce its vails .Red Diamonds was only known to BAE and its existence known to a small number of executives.
As for Today,The plea bargain agreed between arms giant BAE Systems and the UK Serious Fraud Office (SFO) to end the six-year bribery investigation was not, as expected, signed off this morning at Southwark Crown Court in south London by Mr Justice Bean.
Shailesh Vithlani - a local business man from Tanzania acted as a local marketing advisor for SPS. He was recruited by Christopher Naqdi. Vithlani’s fee was calculated as a percentage of the price of the proposed radar between 31% and 40% .This was particular a high rate of commission , by comparison with other contracts . Accordingly , BAE has accepted that there was a high probability that the payments to Vithlani were intended to compensate him for work done and seeking to persuade relevant s to favour BEA in respect to the radar project .It is not now possible to establish precisely what Vithlani did with the money which was paid to him. The phrase “ Technical services” was used by SPS to describe Vithlani’s role despite the fact that Vithlani was not providing technical services and had no knowledge of any technical matters concerned with the Radar Project.
The Payment that were made to him are:
DATE: CONTRACT AMOUNT
7 JANUARY 2000 ENVERS $ 40,000
7 JANUARY 2000 MERLIN $ 40,000
23 JUNE 2000 ENVERS $ 95,000
18 JUNE 2000 MERLIN $25,000
18TH JULY 2000 ENVERS $ 1,774,968
12TH JANUARY 2001 ENVERS $1,486,460
12 TH JANUARY 2001 MERLIN $63.540
16TH JANUARY 2002 ENVERS $2748,490
16TH JANUARY 2002 MERLIN $167,510
18TH JANUARY 2002 ENVERS $790,540
18TH JANUARY 2002 MERLIN $ 23,460
24TH January 2003 ENVERS $ 2,964.50
25TH FEB 2004 ENVERS $344,500
25TH FEB 2004 MERLIN $5,500
24TH MARCH ENVERS $272,250
24TH MARCH 2004 MERLIN $ 2,750
7TH DEC 2004 ENVERS $272,250
7TH DEC 2004 MERLIN $2,750
8TH APRIL 2005 ENVERS $272,250
8TH APRIL 2005 MERLIN $2,750
12 DEC 2005 MERLIN $2,750
13 DEC 2005 ENVERS $ 272,250
14TH DEC 2005 ENVERS GBPOUNDS 1,899,576.27
14TH DEC 2005 MERLIN $34,000
At the hearing today, Instead the judge forensically questioned barristers representing BAE and the SFO as to the exact nature of the payments made through shell companies Red Diamond and Envers to Mr Sailesh Vithlani. He was openly skeptical about the nature of the services offered Mr Vithlani and the amount paid to him - $12 million- between 30 and 40 per cent of the cost of the contract when the norm is around 3 percent..
In the freezing weather supporters from Campaign Against Arms Trade (CAAT) and The Corner House held a colourful pageant outside the court house of a giant puppet of Dick Olver, BAE Chairman, hugging a uniformed Prince Andrew while handing giant peanuts. They urged the court not to fine BAE peanuts and pointed out that the proposed fine of £2 million would be a small cost to BAE
Kaye Steanman of CAAT said:
"We went into the court today with expectations that signing off the plea bargain with arms giant BAE would be a formality. Instead we have seen a judge question the nature and seriousness of the offence, openly suggesting that BAE was happy to channel funds to Mr Vithlani and not pursue what he did with them. We will be very interested to what the judge has to say tomorrow when he delivers the sentence."
Staff at Play out 24 7 accepting their Diplomatic Award at their head office in cleveland street(ABOVE)
BAE-SEROUS FRAUD OFFICE settlement questioned by judge - sentence postponedBy ayoub mzee -London
IN THE CROWN COURT AT SOUTHWARK BETWEEN Regina V BAE Systems PLC
BAE SYSTEM-the world’s largest defence business, engaged in development and delivery and support of advanced defence aerospace systems for Air ,land and Naval forces, which had pleaded guilty to one count of breaching its duty to keep accounting records contrary to sec 221 of the companies act 1985 .They had pleaded guilty to this offence on agreed factual basis pursuant to a written settlement (“the settlement agreement “) between the company and the serous Fraud office dated 16th February 2010 .This settlement agreement was reached having regard to the Attorney Generals guidelines on Plea Discussions in cases of serous or complex cases. The offence before the judge concerns how the accounting for the contract for the provision of a Radar Defence System to the Tanzania Government. According to the contract –in November 1992 the Tanzania Government invited tenders to supply a new air traffic control system at Dar es salaam INTERNATIONAL Airport. Four companies including SPS, bid for the tender in November 1993.In October - November 1997 BAE acquired SPS ..On 10 September 1999, a new contract was signed between BAEDS and the Government. The price was $39.97 million.
Between September 1995 and September 1996 BAE executives were actively looking for ways to achieve maximum confidentiality in regard to the names of , and payments to ,advisers, Mr Vithlani being one of such advisers to protect them in case they wished to pass on money to a third party but cannot declare this to authorities or protect them from general embarrassment or possible press interest due to a large fee or sensitive subject .And according to BAE lawyers , this was a legitimate commercial aim or avoid Tax implications. These considerations led to the incorporation of Red Diamonds Trading LTD in February 1998.Red Diamond was a British Virgin Island company , so instructed that it could be extremely difficult for an enquiring outsider to pierce its vails .Red Diamonds was only known to BAE and its existence known to a small number of executives.
As for Today,The plea bargain agreed between arms giant BAE Systems and the UK Serious Fraud Office (SFO) to end the six-year bribery investigation was not, as expected, signed off this morning at Southwark Crown Court in south London by Mr Justice Bean.
Shailesh Vithlani - a local business man from Tanzania acted as a local marketing advisor for SPS. He was recruited by Christopher Naqdi. Vithlani’s fee was calculated as a percentage of the price of the proposed radar between 31% and 40% .This was particular a high rate of commission , by comparison with other contracts . Accordingly , BAE has accepted that there was a high probability that the payments to Vithlani were intended to compensate him for work done and seeking to persuade relevant s to favour BEA in respect to the radar project .It is not now possible to establish precisely what Vithlani did with the money which was paid to him. The phrase “ Technical services” was used by SPS to describe Vithlani’s role despite the fact that Vithlani was not providing technical services and had no knowledge of any technical matters concerned with the Radar Project.
The Payment that were made to him are:
DATE: CONTRACT AMOUNT
7 JANUARY 2000 ENVERS $ 40,000
7 JANUARY 2000 MERLIN $ 40,000
23 JUNE 2000 ENVERS $ 95,000
18 JUNE 2000 MERLIN $25,000
18TH JULY 2000 ENVERS $ 1,774,968
12TH JANUARY 2001 ENVERS $1,486,460
12 TH JANUARY 2001 MERLIN $63.540
16TH JANUARY 2002 ENVERS $2748,490
16TH JANUARY 2002 MERLIN $167,510
18TH JANUARY 2002 ENVERS $790,540
18TH JANUARY 2002 MERLIN $ 23,460
24TH January 2003 ENVERS $ 2,964.50
25TH FEB 2004 ENVERS $344,500
25TH FEB 2004 MERLIN $5,500
24TH MARCH ENVERS $272,250
24TH MARCH 2004 MERLIN $ 2,750
7TH DEC 2004 ENVERS $272,250
7TH DEC 2004 MERLIN $2,750
8TH APRIL 2005 ENVERS $272,250
8TH APRIL 2005 MERLIN $2,750
12 DEC 2005 MERLIN $2,750
13 DEC 2005 ENVERS $ 272,250
14TH DEC 2005 ENVERS GBPOUNDS 1,899,576.27
14TH DEC 2005 MERLIN $34,000
At the hearing today, Instead the judge forensically questioned barristers representing BAE and the SFO as to the exact nature of the payments made through shell companies Red Diamond and Envers to Mr Sailesh Vithlani. He was openly skeptical about the nature of the services offered Mr Vithlani and the amount paid to him - $12 million- between 30 and 40 per cent of the cost of the contract when the norm is around 3 percent..
In the freezing weather supporters from Campaign Against Arms Trade (CAAT) and The Corner House held a colourful pageant outside the court house of a giant puppet of Dick Olver, BAE Chairman, hugging a uniformed Prince Andrew while handing giant peanuts. They urged the court not to fine BAE peanuts and pointed out that the proposed fine of £2 million would be a small cost to BAE
Kaye Steanman of CAAT said:
"We went into the court today with expectations that signing off the plea bargain with arms giant BAE would be a formality. Instead we have seen a judge question the nature and seriousness of the offence, openly suggesting that BAE was happy to channel funds to Mr Vithlani and not pursue what he did with them. We will be very interested to what the judge has to say tomorrow when he delivers the sentence."
