Al-Yamamah arms deal participant British Aerospace
Al Yamamah (Arabic: اليمامة, lit. 'The Dove') is the name of a series of record arms sales by the United Kingdom to Saudi Arabia, paid for by the delivery of up to 600,000 barrels (95,000 m3) of crude oil per day to the British government. The prime contractor has been BAE Systems and its predecessor British Aerospace. The first sales occurred in September 1985 and the most recent contract for 72 Eurofighter Typhoon multirole fighters was signed in August 2006.
Mike Turner, then CEO of BAE Systems, said in August 2005 that BAE and its predecessor had earned £43 billion in twenty years from the contracts and that it could earn £40 billion more. It is Britain's largest ever export agreement, and employs at least 5,000 people in Saudi Arabia.In 2010, BAE Systems pleaded guilty in a United States court to charges of false accounting and making misleading statements in connection with the sales. An investigation by the British Serious Fraud Office into the deal was discontinued after political pressure from the Saudi and British governments.Summary
The Financial Times reported Saudi Arabian "interest" in the Panavia Tornado in July 1984. Export had become a possibility after West Germany lifted its objections to exports outside of NATO. In September 1985 Saudi Arabia agreed "in principle" to a Tornado, Hawk and missile deal. On 26 September 1985 the defence ministers of the UK and Saudi Arabia sign a Memorandum of Understanding in London for 48 Tornado IDSs, 24 Tornado ADVs, 30 Hawk training aircraft, 30 Pilatus PC-9 trainers, a range of weapons, radar, spares and a pilot-training programme. The second stage (Al Yamamah II) was signed on 3 July 1988 in Bermuda by the defence ministers of the UK and Saudi Arabia.Although the full extent of the deal has never been fully clarified, it has been described as "the biggest [British] sale ever of anything to anyone", "staggering both by its sheer size and complexity". At a minimum, it is believed to involve the supply and support of 96 Panavia Tornado ground attack aircraft, 24 Air Defence Variants (ADVs), 50 BAE Hawk and 50 Pilatus PC-9 aircraft, specialised naval vessels, and various infrastructure works. The initial Memorandum of Understanding committed the UK to purchasing the obsolete Lightning and Strikemaster aircraft, along with associated equipment and spare parts.The British government's prime contractor for the project is BAE Systems. BAE has approximately 4,000 employees working directly with the Royal Saudi Air Force (also see Military of Saudi Arabia).
The success of the initial contract has been attributed to Prime Minister Margaret Thatcher, who lobbied hard on behalf of British industry. A Ministry of Defence briefing paper for Thatcher detailed her involvement in the negotiations:
Since early 1984, intensive efforts have been made to sell Tornado and Hawk to the Saudis. When, in the Autumn of 1984, they seemed to be leaning towards French Mirage fighters, Mr Heseltine paid an urgent visit to Saudi Arabia, carrying a letter from the Prime Minister to King Fahd. In December 1984 the Prime Minister started a series of important negotiations by meeting Prince Bandar, the son of Prince Sultan. The Prime Minister met the King in Riyahd in April this year and in August the King wrote to her stating his decision to buy 48 Tornado IDS and 30 Hawk.
There were no conditions relating to security sector reform or human rights included in the contracts. Contracts between BAE Systems and the Saudi government have been underwritten by the Export Credits Guarantee Department, a tax-payer funded insurance system. Guarantees on a contract worth up to £2.7 billion were signed by the Government on 1 September 2003. In December 2004, the Commons Trade Committee chairman, Martin O'Neill, accused the Government of being foolish for concealing a £1 billion guarantee they have given to BAE Systems.