Slush fund claims wrong, says BAE

DEFENCE equipment group BAE Systems dismissed new documents that allegedly show the defence contractor had a 'slush fund' to win favour with Saudi officials.

The papers appear to show that chief operating officer Steve Mogford approved payments and suppressed an internal investigation into the 'fund' when he headed BAE's main Saudi project during the mid-1990s.

The Bribing for Britain report, which is part of the BBC's Money Programme series, repeated allegations that surfaced in newspaper reports yesterday.

BAE said before the broadcast that it 'is disappointed and surprised that the BBC's Money Programme is repeating nine-year-old allegations that are ill-informed and wrong. There is not now and there has never been in existence what the media refers to as a slush fund.'

The Serious Fraud Office is still investigating earlier allegations of such a fund.

Shares closed down 5 1/2p to 233p in anticipation of last night's transmission.