Viennese count arrested amid bribery probe at BAE SystemsBy Michael Peel and Sylvia Pfeifer
Published: October 21 2008 03:00 | Last updated: October 21 2008 03:00
A Viennese count who owns a Scottish stately home has been arrested as part of an expanding multi-country investigation into suspected bribery by BAE Systems to win European arms deals, the Financial Times has learnt.
The Serious Fraud Office interviewed Count Alfons Mensdorff-Pouilly and another man on Sunday on suspicion of corruption, later releasing the pair on police bail to appear early next year.
The arrests - which came after raids last month on a number of properties in Britain, Hungary and Austria - highlight the wide range of active probes still facing BAE in the aftermath of the scrapped investigation into its Saudi Arabian arms deals.
Investigators are probing whether Count Mensdorff-Pouilly's company used money from BAE to bribe people in positions of power over arms contracts in countries including Austria and the Czech Republic, Harald Schuster, his lawyer, said last night.
Mr Schuster confirmed that the count had been interviewed by the SFO and said he had co-operated fully with investigators: "He was only asked to go along for questioning. It was a very proper conversation."
Mr Schuster said the count had worked as a consultant for BAE but denied all wrongdoing. He was one of 12 suspects - including 10 existing or previous BAE employees - named in a request for legal assistance sent by the SFO to other European authorities.
British, Swedish and Czech authorities have been probing a Kc60bn (then worth £1.1bn) 2001 agreement - later cancelled - to sell 24 Gripen fighters to the Czech military. The deal was done by a 50-50 joint venture between BAE and Saab of Sweden, which later took full ownership of the project.
Mr Schuster said the count was intercepted by the British authorities at the weekend as he travelled back to Austria from Glenshee, Perthshire, where he owns Dalnaglar Castle through a Hungarian company.
He travelled with investigators for questioning at Carlisle in England, where the SFO has jurisdiction, with his chauffeur-driven car following in convoy.
On September 24, investigators raided the castle, which charges guests £250 per night, and three residential addresses in London in connection with the investigation.
BAE - which has always denied bribery - said it continued to "wholeheartedly" supported the SFO's efforts to conclude the investigation.
Copyright The Financial Times Limited 2008
Source
http://www.ft.com/cms/s/0/d8f8b6f0-9f08-11dd-98bd-000077b07658.html?nclick_check=1
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