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Defense contractor will pay $450M settlement with U.S., Britain

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Staff Report Updated 11:21 AM Monday, February 8, 2010

BAE Systems, whose worldwide defense contracting businesses include Ohio operations in the Dayton and Fairfield areas, has agreed to pay almost $450 million in the United States and Britain to settle longstanding allegations that it paid bribes to win contracts overseas.

The largest portion of the penalty is a $400 million fine that the British company will pay to the U.S. government to resolve accusations that BAE misled the Defense and State departments about its efforts to comply with the Foreign Corrupt Practices Act. The law forbids companies to bribe foreign government officials in exchange for contracts or other favorable treatment. BAE said it will plead guilty to one criminal charge of conspiring to make false statements to the U.S. government, which is a major customer of BAE. BAE also will pay almost $50 million in Britain and plead guilty to an accounting violation to failing to properly record commissions that it paid to a marketing adviser in connection with BAE’s sale of a radar system to Tanzania in 1999.

“The company very much regrets and accepts full responsibility for these past shortcomings,” BAE said in a statement Friday, Feb. 5.

BAE’s businesses in southwest Ohio include a vehicle armoring operation in Fairfield and the former MTC Technologies Inc. in Riverside.

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