Arms giant BAE Systems has agreed to pay nearly $US450 million ($A520.41 million) to settle anti-corruption charges brought by Britain's Serious Fraud Office (SFO) and the US
Department of Justice (DoJ).
The fines - $US400 million ($A462.59 million) to the DoJ, and £30 million ($A54.66 million) to the SFO - relate to investigations into BAE deals with countries including Tanzania,
the Czech Republic, Hungary and Saudi Arabia.
The defence firm admitted conspiring to make false statements to the US government about its compliance with anti-corruption regulations, and for failing to record commission payments relating to a 1999 deal with Tanzania.
"The company very much regrets and accepts full responsibility for these past shortcomings," BAE Systems chairman Dick Olver said.
Under the US deal, which still requires court approval, BAE agreed to plead guilty to one charge of conspiring to make false statements to the US government concerning certain regulatory filings and undertakings.
BAE accused of lack of anti-bribery measures
The DoJ accused the firm of intentionally failing to put appropriate anti-bribery measures in place and for concealing commission payments.
It accused BAE of making hundreds of millions of dollars in payments to third parties, in the knowledge that the money would very likely be handed over to people to favour BAE in the awarding of defence contracts.
In particular, the DoJ's charge sheet highlighted "substantial benefits" given to a Saudi Arabian official who had influence over the sale of Tornado aircraft to the kingdom.
Employee racks up $5.78m expenses
These benefits were provided through a BAE employee who racked up more than $US5 million ($A5.78 million) in expenses between May 2001 and early 2002, it claimed.
The DoJ said BAE had given assurances that such payments would be properly scrutinised but failed to do so.
The defence firm said it would plead guilty to conspiring to make false statements, adding: "The company will pay a fine of $US400 million ($A462.59 million) and make additional commitments concerning its ongoing compliance."
Under the SFO deal agreed on Friday, BAE said it would plead guilty to one charge of breach of duty to keep accounting records concerning payments made to a former marketing adviser in Tanzania over the sale of a radar system in 1999.
BAE admitted the payments were not properly recorded and agreed to pay 30 million pounds, some of which will reportedly be used for the benefit of Tanzania.
SFO Director Richard Alderman said he was "very pleased" with the settlement, and said it would bring an end to his investigations into BAE.
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