Serious Fraud Office decision undermines Britain's reputation

12.00.00am GMT Thu 14th Dec 2006

Commenting on the Atttorney General's statement this evening that the Serious Fraud Office would drop its inquiry into arms deals with Saudi Arabia, Liberal Democrat Shadow Attorney General, Simon Hughes MP said:

"After an invasion of Iraq widely held to be illegal, today's decision to stop investigations into corruption allegations surrounding a £10bn British Eurofighter contract with Saudi Arabia will further tarnish Britain's reputation for compliance with the rule of law, at home and abroad.

"From the moment investigations began, it was clear that they would not be popular in Saudi Arabia. But to pull the plug halfway through, and when real progress was just being made, is the worst of all possible outcomes.

"It is not in the interests of a successful British defence industry, of British exports, or of British diplomatic interests around the world that we cannot now show that our legal system is above undue influence or improper pressure.

"In the long term, the British public interest will not be served by today's rushed decision made unannounced only under the heaviest of pressure from the Saudi Arabian government. The United Kingdom will have difficulty winning the argument for corruption-free commerce around the world in the years ahead."