Halting BAE probe 'damaged UK'

The Government's controversial decision to drop a fraud investigation into BAE Systems' [pound]40bn arms deal with Saudi Arabia has caused "severe damage" to Britain's reputation for fighting corruption, MPs warned yesterday.

Britain could find its ability to tackle the Saudis over human rights violations undermined by its decision to abandon the Serious Fraud Office inquiry into the 1980s al Yamamah deal, the Commons Foreign Affairs Committee added.

MPs urged the Government to outline the steps it has taken since dropping the probe last December to maintain momentum on anti- corruption measures.

"We conclude that the Government's decision to halt the inquiry ... may have caused severe damage to the reputation of the UK in the fight against corruption," the committee said.

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